Netflix announced a new streaming deal with CBS on February 22nd, just hours after Amazon introduced it’s streaming feature for Prime users. Netflix Deals with CBS and NBC make Netflix the best Deal for watching movies online.
During this 2-year contract, Netflix will get episodes from classic series like” “Hawaii Five-O,” “The Twilight Zone,”"Star Trek,” “Frasier,” “Cheers,” “Twin Peaks, and others. It will also include certain episodes from current shows like “Medium” and “Flashpoint.” The companies had a previous streaming deal signed in late 2008 that covered series like “NCIS,” “CSI” and “Numbers” which appears to have expired.
The new CBS agreement sends a strong message to Amazon that when it comes to premium content, Netflix is still the king of the jungle for online movie and tv streaming. If Amazon wants to compete title-for-title, Amazon has to aggressively spend to acquire new content. Amazon is only likely to do this if it sees meaningful increases in Prime membership due to the new streaming feature, which I believe is unlikely.
The CBS-Netflix deal is yet more bad news for Hulu and Hulu Plus. Though CBS isn’t an equity partner in Hulu, making its deal with Netflix not quite the same slap in the face to Hulu that prior NBCU and ABC Deals with Netflix were, it’s still another painful reminder that Hulu simply doesn’t have the financial muscle to compete for top-level content for its Hulu Plus service.
This advantage is unlikely to change soon; even Hulu’s relationships with ABC, NBC and Fox, for TV programs on Hulu.com that were supposed to be the foundation for its rumored IPO, were recently considered outdated,thereby scotching the offering.
We still don’t know who the final winner is going to be, but for now Netflix if offering the best deal for the most content in the online streaming business.
