Los Gatos, Calif. — Amid anger from Netflix customers, who never saw the recent pricing changes coming, is the news that Netflix and NBC Universal have expanded and renewed their live video streaming deal.
Michael Pachter from Wedbush Securities told the Hollywood Reporter Thursday that he speculates the deal between the two giants could be worth $300 million a year to NBCU, up from $25 million annually.
The deal assures that content from shows such as The Office and Saturday Night Live will remain on Netflix, and that the company will expand to include other shows such as Psych, Law and Order: SVU and Leave it to Beaver — covering a range of genres from NBCU’s library.
Not interesting? Maybe Blockbuster’s 30-day free trial for switching to their service is.
The company, which went from market leader to bankruptcy protection in 2010, is rewarding customers who switch from Netflix to one of Blockbuster’s “total access” plans to receive DVDs by mail with a 30-day free trial, Reuters reported.
Blockbuster released a statement Friday calling Netflix’s price increase “shocking” and said it would “rescue upset Netflix customers.” The financially struggling company also launched a new website around the promotion with a banner saying “Netflix customers, say hello to Blockbuster.”
“I understand Blockbuster’s offer is for $9.99 for 1 DVD at a time. The same offer from Netflix is $7.99 a month. Why would someone change?” a Netflix spokesman said. Pachter supported this perspective with a statement doubting Blockbuster will gain customers from Netflix.
Related Links:
http://tinyurl.com/5rn28y7 (The Hollywood Reporter)
http://tinyurl.com/6ehhatc (Reuters)
