UPDATED 10:30 EST / SEPTEMBER 24 2010

Netflix Streaming-Only Offer in US, Deal with NBC

Netflix has  just signed a deal with NBC, and they’re looking to further tier their viewing options. The movie and TV show rental service is considering offering a new subscription type for customers. This subscription would be Streaming-Only, and would be priced lower than all subscription schemes offered now. Already being offered in Canada for $7.99/mo., the U.S. market can look for it in the coming months. The news was reported on PCmag that:

On Friday, Netflix also expand its licensing agreement with NBC Universal to allow members to watch select NBC content via its “Watch Instantly” streaming library for the first time. The U.S. streaming-only option would allow users to sign up for access to “Watch Instantly,” but not its DVD delivery service. All Netflix subscriptions currently provide access to its streaming library, but the cheapest option in the U.S. is now $8.99 per month, which allows users to check out 1 DVD at a time.

This move might be part of the long-term, strategy but it came out as a PR effort to mend the damage from a comment by CEO Reed Hastings. The news was disclosed in an apology blog post. The streaming only option, when it gets over the PR fix, will have to offer great content to gain popularity. The on-demand offerings now certainly need improvement to make the offer worth the money. The content rights deal with NBC will help solve this problem.

Getting a content deal with NBC shows that Netflix is looking to remain dominant in the space, through partnerships and other means.  NBC has picky about their content distribution deals, wanting to ensure viewing quality and format compatibility across devices.  The big question here is for the cable companies, and how they will deal with the changes in media pricing and distribution methods?


A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU