Netflix, Discovery Nets Team For 2-Year TV Deal
Coming off some multiple consumer snafus, Netflix continues to make -- and extend -- its roster of nonexclusive licensing TV deals. The newest one is with Discovery Communications.
The two-year deal, however, did not include all its networks and programming. Absent here are two of its newest channels: OWN: Oprah Winfrey Network and The Hub, Discovery's kids network partnership with toymaker Hasbro.
The deal does include an expanded selection of additional seasons of series on Discovery, TLC, Animal Planet, Investigation Discovery, Science and Military Channel. Among the top programs are Discovery Channel's "Man vs. Wild," TLC's "Say Yes to the Dress," and Animal Planet's "River Monsters."
Rebecca Glashow, senior vice president of digital distribution for Discovery Communications, stated: "We are pleased to renew this agreement with Netflix, which provides us with programming flexibility and lets loyal and potential fans catch up and discover content."
Netflix chief content officer Ted Sarandos said: "With television shows playing an ever more important role for Netflix, Discovery is one our finest suppliers of top quality programming."
In July, Netflix announced a price change which effectively amounted to a 60% increase for many customers. Recently, it said third-quarter projections would be some 1 million lower than previously estimated. This past weekend, it announced its big DVD-by-mail service would be renamed Qwikster -- which resulted in both consumer and investor apathy.
Netflix stock dropped some 20% on the news of lower consumer projections. On Wednesday in mid-day trading, the company's stock was $130.01 down 0.02%.