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Netflix (NFLX) Expands its Library with Rights to More Shows

Apart from investing in the development of original content, Netflix, Inc.NFLX has also been making attempts to rope in television and cable content providers to please its growing user base.

The streaming giant recently acquired rights to three more shows. Netflix got the privilege for exclusive streaming two popular series from CBS, Zoo and Jane The Virgin , in over 50 countries. This apart, the company also received the global subscription video on demand (SVOD) rights for the upcoming drama jointly produced by Legendary Television and Universal Cable Productions, named COLONY .

This is the third such deal in a month. Earlier, the company had announced that it will be the exclusive platform for streaming the upcoming series, How To Get Away With Murder , from ABC Television Group, which is a unit of The Walt Disney Company DIS .

The sheer size of the company's streaming universe is making television and cable operators to consider licensing their content despite losing ad revenues and ratings. Further, Netflix has already become popular in a number of key regions.

Netflix intends to expand its presence in over 200 countries by the end of next year, for which it requires to have an optimum portfolio mix comprising both original and licensed content to deliver maximum value to its subscribers.

Increasing competition from peers like Hulu, Amazon's AMZN Twitch, Vimeo and Google's GOOGL YouTube is a concern for the company. To fend off competition, Netflix is trying to get exclusive rights to the content.

However, this Zacks Rank #3 (Hold) company faces challenges as not all content creators are willing to give away exclusive rights. This August, Netflix declared that it will not be renewing the content deal with cable network company Epix from October onwards citing the content was not exclusive.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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