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: Epix needs to wake up
10/10/2012 9:17:55 AM
That and people don't want to change the way they watch TV everytime a new service comes out. Netflix is on both my BluRay players, my TV, all three of my Tablets, WP7, and iPhones. Get the same for Amazon and I will consider switching.
RE: Epix needs to wake up
10/10/2012 10:01:27 AM
Exactly correct here.
All my blue ray players, media streamers, tv's, etc.. support Netflix right now.
Not all of my devices support Amazon and I am not investing in more hardware either.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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
FBI's Facial Recognition Database to Have 52 Million Criminal, Non-Criminal Photos by 2015
April 15, 2014, 2:56 PM
Microsoft's Anti-Google "Scroogled" Campaign May Have Ended
April 15, 2014, 2:44 PM
FAA Requiring All Flights to Have GPS Tracking System by 2020
April 15, 2014, 1:25 PM
Google Updates Terms of Service to Disclose Email Scanning for Targeted Ads
April 15, 2014, 9:29 AM
Netflix Speeds Increase for Comcast Users Following Recent Agreement
April 14, 2014, 8:02 PM
44 Percent of Twitter's Total Users Have Never Sent a Tweet
April 14, 2014, 7:55 AM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
iPad Exploiter is Freed by Federal Appeals Court
April 11, 2014, 7:40 PM
It's Very Likely Neanderthals and Humans Had Sex, Produced Offspring
April 10, 2014, 8:40 PM
Cops at Historically Troubled LAPD are Sabotaging Digital Recording Devices
April 9, 2014, 11:10 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information