Netflix and CBS Strike a Deal
(New York Times) — CBS is likely to earn about $200 million over the next two years under the deal it reached with Netflix this week to stream TV shows from the network’s library, an analyst estimated on Wednesday. The two companies announced a nonexclusive streaming deal for some TV shows on Tuesday, giving CBS a new incremental source of revenue and giving Netflix a bit more content to promote to its customers.
That content includes “Medium,” which was recently canceled; “Flashpoint,” which is shared with CTV in Canada; and a raft of old shows like “Frasier,” “Family Ties” and “Cheers.” (Some of the shows included in the package are associated with other networks, but were distributed by CBS’s studio.) Importantly, the deal excludes all of CBS’s biggest shows, reiterating the network’s position that television comes first and the Web comes second for now.