Netflix, Fox Sign Latin American Streaming Deal9 May, 2012 By: Erik Gruenwedel
Netflix May 9 said it has signed a multi-year deal with 20th Century Fox Television Distribution to allow subscribers in Latin America and Brazil to stream catalog TV programs and movies.
The agreement begins July 1 and includes movies Gentlemen Prefer Blondes, Wall Street and Office Space, among others. TV programs, beginning July 15, include past seasons of "24," "Prison Break," "The X-Files" and "Arrested Development," as well as current and past seasons of "How I Met Your Mother," "Glee" and "Bones," among others.
Los Gatos, Calif.-based Netflix launched in 43 countries and territories in Latin America, including Brazil, in September 2011. To date, the region remains a challenge for Netflix due to spotty penetration of high-speed Internet service in households, credit card usage and other logistical and technical issues. CEO Reed Hastings said the region would take longer to achieve profitability than originally projected.
Netflix's international streaming subscriber base, which includes Canada, Ireland and the United Kingdom, topped 3 million members at the end of the first quarter, ended March 31.
Regardless, Fox sees the region as key to incremental revenue growth for catalog content.
“Because Latin America is such an important territory for the fan base of our shows, our partnership with Netflix serves as a vital opportunity to link that fan base with the characters and shows that they have come to know and love,” said Gina Brogi, EVP of worldwide pay television and subscription video-on-demand for 20th Century Fox Television Distribution.