Did Netflix Overpay For Epix?

August 26, in Business

Here’s a shock for you–seems that the crew out at the Motley Fool think that Netflix overpaid for Epix.  And when I look at his logic, he’s part right, and part wrong.

See, he’s got a point in that Netflix shelled out about two hundred million annually for the rights to get Epix content ninety degrees after Epix gets it. He’s further got a point that no one’s going to cancel their Epix subscription (if they’ve got it on their TV) to become a Netflix subscriber and get Epix content ninety days late.

But what he’s not factoring in is the availability. Yes, you get the content ninety days sooner for slightly more cash if you keep Epix, but with Epix, you get to watch what they show you. They determine the content.  The greatest virtue of a home theater is versatility, and if you’re a Netflix subscriber to Epix, you can stream whatever Epix content you like (after the ninety day embargo, of course) whenever you like. No waiting, no TiVo, no nonsense–just pick your poison whenever you want. Epix absolutely on demand.

Will THAT make people jump ship for Netflix?  Very possibly.

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