CBS has signed a two-year deal allowing Netflix to stream some TV shows from its library, beginning in April.
Included in the deal are episodes of recent series such as Medium and Flashpoint, as well as full seasons of classic shows, including Frasier and Cheers.
Financial terms of the deal were not announced. CBS has an option to extend the agreement for up to two additional years.
Netflix and other services that digital content distributors have become a worry to cable and satellite companies, which charge much more than Netflix's $7.99 a month. At the same time, content companies have been trying to decide under which conditions and at what price they would allow Netflix to use their content.
In recent public appearances, CBS CEO Les Moonves has said that digital distributors want CBS content, but that he was intent on preserving its advertising and syndication revenues. This new deal does not include shows currently on the CBS network and the shows that are included have already gone through at least one round of syndication sales.
"This deal recognizes the increasing value of our content in today's marketplace," Scott Koondel, president of Distribution, CBS Television Distribution, said in a statement. "More and more, people want to be able to access our programming on a wide variety of platforms. We are very pleased that the titles offered through this deal will now also be made available to a whole new community through the terrific and convenient service that Netflix offers. We will continue to pursue additional non-exclusive distribution partners that are additive to our overall business."
"We are thrilled to be bringing CBS shows to Netflix and are looking forward to growing our relationship over time," said Ted Sarandos, Chief Content Officer for Netflix. "Netflix is now the only online premium subscription service with shows featured on all four broadcast networks and dozens of cable TV's biggest brands."
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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