Netflix Strikes Deals for its UK Launch

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Netflix, the US online video-on-demand streaming service is gearing up for its 2012 launch in the UK and Ireland. Set to compete with Amazon's LoveFilm, Sky and Google's YouTube, the company has been negotiating TV and movie content deals with broadcasters and production companies.

Last Monday, Netflix already announced that they have become MGM's exclusive streaming partner in the UK and Ireland, getting the rights to show new films like The Hobbit by Peter Jackson and the 21 Jump Street remake. According to sources, they are also near the end of commercial terms or negotiations with ITV for its archive programming. Netflix will be able to show all archived ITV content except shows included in the 30-day catch up window, which will remain on ITV Player.

“For Netflix, a deal would mean a huge marketing partner to help its UK ambitions and for ITV it fits with their strategy of building pay revenue,” says the source to The Guardian. ITV is yet to announce its micropayment system for ITV Player, but a deal with Netflix will help Adam Crozier rely less on advertising revenue. It is currently keeping mum about a deal with Netflix, however, releasing this official statement: “Part of ITV's five-year transformation plan is to look at exploiting our content across multiple platforms, free and pay. As you'd expect we talk to a number of parties about the best ways to do this. There is nothing to announce at this time.”

Apart from ITV, the streaming company is also in talks with Channel 4; the negotiations of which will probably be finalized before Christmas as a source reveals they are “a few weeks down the track from where ITV is at.”

Lionsgate, which owns the rights to movies like Kick Ass and Rambo, has also been approached by Netflix.

Warner Bros, whose movie deals are currently held by Sky but are up for renegotiation in 2012 has also been approached by the streaming service. It is rumored that Netflix offered £60m a year for the Warner Bros movie rights. This is a good alternative for the movie company as BSkyB is facing investigation by the Competition Commission, and may not be able to hold on to all its movie rights.

Finally, Momentum Pictures has also been approached, though rival streaming service LoveFilm has a relationship with the company best known for movies like The King's Speech. LoveFilm also just signed a five-year agreement with Studio Canal and Entertainment One, which owns the rights to Twilight and Gnomeo & Juliet.

Netflix admits that they're in for a touch launch in the UK and Ireland, especially considering that the last US digital streaming venture that tried to open in the UK failed, but if they're able to secure deals with the right broadcasters and movie companies, they have a good shot of being widely successful.
 
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