Amazon Signs New Streaming Deal with Epix; Could Hurt Netflix
October 9, 2012 4:47 PM
comment(s) - last by
Epix will provide Amazon with about 3,000 more movies to the Prime Instant Video catalogue
Amazon is shelling out a considerable amount of cash to make sure its Prime Instant Video Service continues to stay competitive with Netflix via
a new contract with Epix
Amazon is shaking up the pricing model for licensing agreements with movie/TV studios. It recently agreed to pay Epix -- a partnership between Metro-Goldwyn-Mayer, Lionsgate and Paramount Pictures -- an earn-out provision if the number of Amazon Prime Instant Video subscribers increases above a certain point. This payment will be dished out over time as subscribers grow, and is in addition to the usual fixed upfront fee.
Generally, services like Netflix only agree to a fixed upfront fee with movie/TV studios when it comes to content licensing. However, studios realized that they want to be in on any future growth that may occur with video streaming services.
Epix isn't the only one who will benefit from such a deal model. Amazon has now given studios a reason to want to do business with them instead of bigger services like Netflix. As of now, Netflix has about 25 million subscribers in the United States while Amazon Prime Instant Video has about 3-4 million. Also, Amazon Prime Instant Video only has about 25,000 titles to offer while Netflix has double that. In other words: Amazon could really use the boost.
Epix will provide Amazon with about 3,000 more movies to the Prime Instant Video catalogue. Epix previously had a contract with Netflix for $200 million a year, but once that agreement ended, Amazon snuck in with the new deal.
Amazon really needs deals such as the one with Epix in order to boost its profit margins where
the Kindle Fire
is concerned, too. Amazon is selling the Fire at a discount with hopes that customers will use it to consume books, TV, movies and shopping through the e-tailer's services -- which makes up for the loss on selling the device at $199.
Since 2011, Amazon has announced new streaming deals with companies like NBCUniversal and ABC.
Amazon and Epix
announced their agreement last month
, but the pricing model details were just recently released.
This article is over a month old, voting and posting comments is disabled
RE: still wondering
10/10/2012 9:03:55 AM
Yeah, Newegg is far superior for browsing than Amazon. But Newegg's search function is weak because you have to spell things right. Amazon's search function is better, but it can overwhelm you with too many results.
"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
Amazon Reveals $299 8.9" Kindle Fire HD, $499 LTE Model with $50 Yearly Data Plan
September 6, 2012, 2:05 PM
Amazon, EPIX Sign Agreement for More Prime Instant Video Content
September 5, 2012, 11:31 AM
Google plans ultra-fast wireless Internet for Research Triangle Park, N.C.
August 12, 2016, 6:30 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Most Popular Articles
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM
Latest Blog Posts
Burlington Gun Attack
Sep 27, 2016, 5:00 AM
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information