Fallout over Netflix original program “House of Cards”
In the wake of news that Netflix purchased the exclusive rights to the new serial drama House of Cards, the competition has reacted. We mused this was a challenge to established premium TV channels such as HBO, Starz and Showtime. These companies have certainly seen it this way.
Showtime has announced they will not be allowing streaming of currently airing first-run series, such as the popular Dexter and Californication.
More noteworthy is that Starz has also chosen to delay release of first-run titles, starting with Camelot, 90-days after air date. In the future, they will also add a window with movies. Starz has been an important partner with Netfilx, providing a huge portion of the Netflix instant library, including new release titles from Walt Disney and Sony Pictures. Starz owns the rights to an extensive library of movies in addition to their original programming, and many believe Starz made Netflix streaming what it is today.
Going forward, Showtime will treat Netflix more like syndication for canceled shows, while Starz will continue providing content, just with a lag time after they have aired it themselves. Both companies wish to retain their subscribers through traditional cable and satellite operators.
HBO does not have an agreement with Netflix yet to stream any titles.