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Netflix, CBS Ink Expanded European Streaming Deal

13 Oct, 2014 By: Erik Gruenwedel

Netflix and CBS Studios International Oct. 13 announced a license agreement giving the subscription streaming pioneer’s recent European territory launches access to select network and Showtime programing, including pay-TV rights to “Penny Dreadful.”

The pact, which includes rights to “Elementary,” “Dexter,” “Ray Donovan,” “Deadwood,” “Jericho” and “Under the Dome,” was announced at MIPCOM confab in Cannes, France.

CBS CEO Les Moonves first disclosed Netflix’s “Penny Dreadful” rights in Germany at an investor event in September. In effect, Netflix became the show’s first syndicator through a bidding process, according to Moonves.

“[Netflix] has become another [player],” he said, adding that negotiations for first-run rights to network and Showtime programing in foreign territories depend on the show and market.

Recent Netflix European territory launches include Belgium, France, Germany, Switzerland, Austria and Luxembourg.

“We’re excited to have CBS’s world-class programming and Showtime’s acclaimed original series be part of Netflix’s launch in these territories,” Armando Nuñez, CEO of CBS Global Distribution Group, said in a statement.

Netflix’s expansion into Europe at the beginning of September is already expected to have an impact on the company’s third-quarter financial results, which will be released Oct. 15.

Canter Fitzgerald analyst Youssef Squali believes Netflix will add 1.44 million international paid net subscribers in the quarter, bringing the SVOD service’s foreign membership above 15 million.

Netflix also operates in Latin America, Mexico, Canada, Scandinavia, Holland, the United Kingdom and Ireland.

“We could see additional upside to international (free) subs given the six-country European launch last month,” Squali wrote in an Oct. 10 note.

About the Author: Erik Gruenwedel

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