Netflix’s Deal With EPIX Adds Less Than 300 Movies, None In HD

As a Netflix customer, I think it is great the company is licensing more digital content. But the deal they announced this morning with EPIX will only give Netflix access to less than 300 movies to add to their inventory. And while EPIX already streams a lot of their movies in HD via the EPIXHD.com website, (Hands-On Review With EPIX's Movie Streaming Service) Netflix will only be getting access to EPIX's movie inventory in standard definition and not in HD.

Neither company is giving out any details on when the content will be available on Netflix but you can take a look at the current list of 306 movies that EPIX has available by going to www.epixhd.com/all-movies. While rumors of the licensing deal are saying that Netflix will pay EPIX $1B over five years, I find that number hard to believe. Even if Netflix got access to all of EPIX's current inventory, they would be paying an average of $200M a year for less than 300 movies. That's an average of $650,000 per movie. That can't be right.

  • Vikash Harlalka

    Dan
    I think I read somewhere that Netflix will also have access to the library. Are you sure about this 300 movie thing?

  • Ray Seals

    Yes, $650,000 for the Extreme Adventures of Super Dave doesn’t make a whole lot of sense. I imagine Epix owns the rights to move than 300, they just haven’t paid to encoded them and make them available. Netflix has the infrastructure to pull that off.
    My thought is we are going to see Netflix make a lot more of these deals with players with limited online offerings but with a big catalog of lower tiered movies. What seems to make the news are deals with major studios to get the new releases. But these smaller deals that allow Netflix to continue to build a comprehensive offering is what will help them shore up the business for the long run. Marketing doesn’t care if our 1 millionth online movie is Who Framed Roger Rabbit 3. It’s the fact that you can say you have 1 million titles online.
    Just my 2 cents.

  • http://www.mattvarney.com Matt Varney

    You link to http://www.epixhd.com/all-movies lists a lot more than 306 movies. If you hit the ‘List’ button and then keep scrolling down you’ll see a ton. The site uses javascript to load more movies after you hit the bottom of the screen. Make sure the last movie you see is in the Z’s to know you have them all loaded.
    I count 22 pages of movies with about 70 movies per page for a rough guess of 1500 movies.
    Hacking Netflix is saying over 3000 movies.

  • HmmConvenient

    I think we need to look at this more strategically. By having this agreement Netflix has just dealt a blow to Hulu Plus, HBO OnDemand, Blockbuster and Redbox. That’s the point – LOCK up content so it can’t go to other platforms. This is freaking smart.

  • Nick

    I’m pretty sure that while the deal includes Epix channel new releases (that channel is Paramount, MGM and lionsgate’s HBO), the deal also includes access to the three studios’ entire libraries. For instance, the AP top technology article I read today (aug. 10th) states that they will get access to the Godfather trilogy and the Star Trek franchise, which I assume are not new releases included in the Epix channel.

  • Brian

    I’m confused….
    Where do you get the 300 number?

  • http://mymedia.burningbird.net Shelley

    I’m also confused:
    Where did you get the information that only SD quality movies will be released on Netflix?

  • http://www.BusinessOfVideo.com Dan Rayburn

    Not sure why you are confused. EPIX said Netflix won’t be getting HD versions of the movies.

  • http://mymedia.burningbird.net Shelley

    Dan Rayburn, where’s the link to Netflix making this statement?

  • http://mymedia.burningbird.net Shelley

    Sorry, I meant, where’s the link to Epix making this statement?

  • Dan Wrongburn

    Dan,
    I’d love to see where you got this “not in HD” from. Neither EPIX nor Netflix have said this, EVER, and it’s likely untrue.
    Also, read what the other commenter said about the library size. Even Netflix has said it’s over 500 movies.
    I’ve taken a snapshot of this post and will archive it, because when you’re proven wrong you’ll likely just delete it instead of posting a retraction.

  • http://www.mattvarney.com Matt Varney

    Regarding the SD/HD story:
    Here is a source: http://www.engadget.com/2010/08/10/netflix-epix-deal-is-official-paramount-mgm-and-lionsgate-mov/
    For those too lazy to go there: “Analyst Dan Rayburn claims on Business of Video that Netflix won’t be getting any EPIX movies in HD, so we asked Netflix VP of Corporate Communications Steve Swasey whether we could expect HD streaming movies with Movie Parties or if they would have Starz-like restrictions. The answer? “HD over time and no restrictions on Party Viewing.” Take from that what you will. ”

  • http://mymedia.burningbird.net Shelley

    So there was no statement from Epix about SD/HD. There is no statement about only 300 movies.
    All we have to go on, is a vague second-hand statement supposedly from one of the Netflix management, saying something to the effect of HD over time.
    Rumor and hearsay.

  • http://www.BusinessOfVideo.com Dan Rayburn

    Yes, there was a statement from EPIX. I spoke to a EPIX representative the day the deal was announced and they said Netflix would not be getting movies in HD quality.
    Like all the deals Netflix does, they announce them without giving out many details or make very vague statements that really don’t clear anything up. But the HD statement came directly from an EPIX spokesperson that I spoke to directly.

  • Michael

    The inaccuracies in the headline and blog are even more interesting when you read one of Dan’s previous posts:
    “So you have half a dozen posts about the deal with not a single one of those reporters even talking to the companies involved Limelight or Brightcove about Limelight losing traffic. I’m not going to call out the bloggers by name, they know who they are, but that’s a really poor job on their part. The business of blogging now seems to be who can get the story up first, or who can write for the best headline as opposed to who can get the story right.”
    http://blog.streamingmedia.com/the_business_of_online_vi/2010/08/the-real-facts-behind-the-akamai-and-brightcove-announcement.html

  • http://www.BusinessOfVideo.com Dan Rayburn

    @Michael: As I said in the comments section, I spoke directly to a EPIX representative the day the deal was announced and they said Netflix would not be getting movies in HD quality. I’m not disclosing who told me the less than 300 number in terms of movies.

  • Michael

    300 movies over what period? At launch perhaps, but certainly not over the period of the contract. Just as Netflix has gone on record that HD content from the agreement is coming.