So Netflix is paying $1 billion to Epix for the rights to stream titles from Paramount Pictures, Lions Gate and MGM. This could have been a big deal, but it preserves the cable networks’ 18 month exclusivity window. At the end of the day the Roku box remains a gateway to sometimes good, but somewhat stale Hollywood fare.
HBO and friends live on for a few more years as they evolve their businesses. Cable companies can continue to force customers into bundles that lump four or five “movie” channels showing pretty much the same stuff. Do cable companies see their reign coming to an end, and are just cash cowing their existing business models? It’s clear the “movie” channels are weaning themselves from studio fare. They continue to expand their original programming efforts — and doing it quite well. But what about the cable companies? Beyond caller ID on my TV for the phone line no one in my family uses, we’re not seeing a lot of innovation from Comcast, Charter, and company.
A more disruptive deal from Netflix would have forced big cable’s hand. We’ll just have to wait until the next round of studio deals with distributors to expire.