Amazon (NASDAQ:AMZN) has signed a deal with Fox (NASDAQ:NWSA) that will allow the former to stream Fox productions — including 24, Arrested Development, The X-Files, Buffy the Vampire Slayer, and even The Wonder Years — via its Amazon Prime service.
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With the deal, Fox joins the ranks of CBS (NYSE:CBS), NBCUniversal (NASDAQ:CMCSA), Sony (NYSE:SNE), and Warner Bros. (NYSE:TWX), all of which have signed content-licensing deals with Amazon. Fox’s contribution is expected to boost Amazon’s total library to 11,000 movies and TV shows, all available for unlimited instant streaming. Amazon has doubled the number of titles available on Prime since launching earlier this year.
A Prime membership costs $79 a year, and also includes access to free two-day shipping on select products. Prime videos can be played on more than 300 HDTVs, Blu-ray players, and set-top boxes, according to CEO Jeff Bezos. The news comes just as Prime’s main competitor, Netflix (NASDAQ:NFLX), announces new deals with DreamWorks and Discovery (NASDAQ:DISCA). Netflix’s streaming-only service costs users $7.99 a month for unlimited access to online content.
The New York Times reported Sunday that DreamWorks Animation and Netflix had signed a streaming rights deal for DWA films and TV specials, reportedly worth $30 million per movie to DWA. The deal essentially replaces the animation studio’s film output pact with HBO (NYSE:TWX), which would have expired in 2014 had HBO not let DWA out of its contract two years early.
In Hollywood, the new deal is being touted as the first time a major content provider has chosen Web streaming over pay TV. “We are really starting to see a long-term road map of where the industry is headed,” DWA chief Jeffrey Katzenberg told the New York Times. “This is a game-changing deal.”
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Netflix chief content officer Ted Sarandos also notes that, with the deal, “You’re seeing power moving back into the hands of content creators. When a company like DreamWorks ends a long-running pay TV deal — when a new buyer in the space steps up — that’s a really interesting landscape shift.”
Netflix will begin streaming DWA movies in 2013.