Wednesday, February 10, 2016

Hollywood convergence in Comcast, Netflix deals

Netflix in deal to show Epix movies; Comcast in deal to sell through Blockbuster stores

Hollywood convergence in Comcast, Netflix deals


The video-rental and online-movie businesses are converging, from both ends, as the middlemen who stand between Hollywood and movie-watchers cut deals:

1) Netflix's deal with Epix, the joint-venture movie-distribution channel run by studios Paramount, Lionsgate and MGM, to distribute some movies online "is a long-term positive" for home-movie-mailer Netflix - but it will need to lure millions of new subscribers (or boost prices or cut costs) to make it worth the "close to" $200 million a year the Los Angeles Times reported Netflix is paying Epix, writes Janney Capital Markets analyst Tony Wible in a report to clients today.

Won't that make Netflix an even more effective competitor (at $10 a month) vs. cable TV? No: The studios that own Epix don't want "to cut off their disc dollars," so they'll make sure Netflix customers "have to wait 90 days after movies debut on Epix [and cable] before they can get them over the Web," notes MediaMemo's Peter Kafka here.

2) Comcast's deal, to give its customers dollar-a-DVD discounts at ailing video-rental chain Blockbuster, will also open 1,500 Blockbuster stores in Comcast territories to Comcast retail sales promos, so Comcast can "market our triple play" video-phone-Internet services to Blockbuster customers, writes Comcast vice president Eric Budin in this blog post. - More from Wall St Journal here

We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy: comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
comments powered by Disqus
About this blog

PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at, 215.854.5194, @PhillyJoeD. Read his blog posts at and his Inquirer columns at Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano
Also on
letter icon Newsletter