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NBC Universal, Netflix Renew Agreement

13 Jul, 2011 By: Chris Tribbey

A day after announcing a major change to its subscription pricing, Netflix July 13 announced it had renewed its streaming pact with NBC Universal.

The nonexclusive, multiyear agreement gives Netflix continued prior-season access to NBC’s network shows, including “The Office” and “30 Rock,” as well as shows from NBC’s cable networks, including "Warehouse 13," "Psych" and "Keeping Up with the Kardashians." Classic shows such as "Leave it to Beaver" and "Crossing Jordan” and Universal Pictures films are included in the deal as well.

Financial terms were not disclosed. However, Michael Pachter, analyst with Wedbush Morgan Securities in Los Angeles, estimated that Netflix was paying $25 million a year for NBC Universal content and that the new arrangement has Netflix paying as much as $300 million a year.

“Our relationship with NBC Universal has been, and continues to be, mutually beneficial and has led to regular expansions of programming for our subscribers,” said Ted Sarandos, Netflix’s chief content officer. “This latest deal includes more episodes of more shows from more NBCU owned channels than ever before.”

Frances Manfredi, EVP and general sales manager for NBC Universal domestic TV distribution, added, “This agreement demonstrates our commitment to providing NBC Universal’s high-quality content to consumers on a variety of platforms.”

The news comes a day after Netflix announced it would split its subscription offerings between DVD-only and streaming-only, charging new subscribers $7.99 for each immediately, and legacy subscribers the same starting Sept. 1. The base price for getting streamin and DVD services jumped from $9.99 to $15.98.

About the Author: Chris Tribbey

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