Netflix, CBS ink streaming TV licensing pact

Netflix, CBS ink streaming TV licensing pact

Summary: Netflix and CBS have entered a two-year licensing pact for streaming TV shows. The news comes as Amazon stepped up an assault on Netflix.

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Netflix and CBS on Tuesday said they have entered a two-year licensing pact for streaming TV shows.

The timing of the news is notable given that Amazon included streaming video into its Amazon Prime free-shipping service.

The terms of the Netflix and CBS deal go like this:

  • A two-year non-exclusive licensing pact for select TV shows from the CBS library;
  • These titles include full seasons of Cheers and Frasier. Sci-fi shows like Star Trek and Twin Peaks are also included.
  • The deal can be extended for another two years.
  • Terms of the partnership weren't detailed but the CBS shows will be available in early April.

In many respects, the CBS deal looked like a way for the media company to monetize its library while bolstering Netflix's library. CBS is the parent company of CBS Interactive and ZDNet.

Analysts said that Amazon's video offering isn't likely to ding Netflix's streaming service. Piper Jaffray analyst Michael Olson said in a research note:

Amazon is the latest in what will likely be a number of competitors in the subscription online video space. Currently Netflix, Amazon & Hulu are the only offerings, but others, including Coinstar (Redbox), are looking to enter the market. That said, the longer Netflix goes without a serious competitor, the more difficult it will become to mount a challenge. We believe the most significant threat from new competition in the space is the potential for rising content costs with multiple new bidders looking to improve content libraries.

Topics: Mobility, Amazon, Hardware

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6 comments
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  • RE: Netflix, CBS ink streaming TV licensing pact

    I don't know much about the world of media rights ownership and licensing, but I noted that none of the shows mentioned (Cheers, Frasier, Star Trek, and Twin Peaks) were CBS shows when they originally aired.<br><br>If CBS acquired rights to these and other non-CBS shows since their cancellation, then it was a shrewd move considering the huge new online market.
    Churlish
  • RE: Netflix, CBS ink streaming TV licensing pact

    Looking forward to ST:TOS on Netflix...hopefully they will land TNG, Voyager, DSN and the Enterprise series in the near future as well.
    VRSpock
  • RE: Netflix, CBS ink streaming TV licensing pact

    Hopefully they land "Whats Happening" as all I see on the List are Reruns.
    Bodazapha
    • RE: Netflix, CBS ink streaming TV licensing pact

      @Bodazapha

      What about "Little House on the Prairie???"
      JeffreyD26
    • RE: Netflix, CBS ink streaming TV licensing pact

      Bodazapha --

      Ha! I'm old enough to get that. :-)
      Churlish
  • Another way to improve the bottom line

    I see it as a way that CBS can boost their earnings without putting out any new shows . Sounds like a money grab. How much will they charge to watch Star Trek ? -- this is a series that`s been free for years. If i`m wrong tell me but money, money, money is what it`s all about.
    Markoshoo11