HBO has locked up the pay-TV rights for films from Universal Pictures, one of the top six Hollywood film studios, the company's said today.
HBO, owned by Time Warner and Universal, which is controlled by Comcast, said they extended their licensing agreement into the next decade. HBO will continue to own exclusive access to the movies during the pay-TV window - the period that begins after movies are made available for sale on download and discs.
The deals throws cold water on the chances that Netflix might land another big licensing agreement similar to the one it entered into with Disney late last year. A month ago, Netflix stunned the Web video sector when it acquired the exclusive pay-TV rights to Disney's films beginning in 2016. Netflix became the first Internet subscription video service to get those rights.
The deal not only gave Netflix instant credibility as a serious challenger to HBO and the big pay-TV services but it also lent credence to the notion that Netflix can still lead a revolution of the home-video market.
Netflix is selling a dream. The company offers unlimited Internet streaming of tens of thousands of movies and TV shows for the monthly price of $8. Nobody offers as much video for as little money. The result is that many consumers want to see Netflix force cable-TV providers to lower their fees. Thousands have already replaced their cable with Netflix. The dream hinges on whether Netflix can obtain enough of what subscribers what to watch.
Here's the tally of where titles from the top studios are promised. HBO has Warner Bros., the largest of the Hollywood studios, NBC Universal and Fox. Netflix gets Disney in three years and already has a deal with Paramount but that's non-exclusive.
That leaves Sony Pictures. That studio is still committed for a couple years to Starz, the pay-TV service that once licensed Internet rights to Sony Pictures and Disney movies to Netflix. The Netflix-Starz agreement ran out last year and now that Netflix snatched Disney it's likely that Starz is not going to let Sony Pictures go easily.
Sorry Netflix; HBO renews Universal film deal
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Sorry Netflix; HBO renews Universal film deal
