Beleaguered Netflix announced early Monday that they have extended their licensing agreement with Disney-ABC Television Group. This extension allows the video streaming service to continue to provide content from ABC Studios, the Disney Channel, and ABC Family.
In addition to the extension, the deal also allows Netflix to begin streaming Disney-ABC television episodes from recent seasons thirty days after the season ends. This includes episodes from shows such as “Grey’s Anatomy,” “Desperate Housewives,” and “Private Practice.” Netflix will also gain full access to completed series, including “Lost.”
As we’ve reported, Netflix has struggled with a significant loss in customers following several unpopular decisions, including a rate hike and a failed plan to split the company. CEO Reed Hastings has stated publicly that the rate hikes in particular were necessary to ensure that the company could afford to renew and sign new content deals. Today’s announcement lends credence to Mr. Hastings’ position. It remains to be seen if future content deals can keep the company’s streaming service viable and restore customer faith.
In related news, Disney-ABC Television Group also signed content deals with Amazon, providing the same movie and television selections to Amazon’s Prime customers as part of its Instant Video streaming service.