Netflix (NFLX) May Have Tough Time in the U.K.
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Netflix (Nasdaq: NFLX) might find itself shunned by broadcasters in one key European country due to an unusual reason: popularity.
According to reports Friday, U.K. broadcaster ITV plc is said to eschew including its more popular TV shows in a recently negotiated deal with Netflix. Likewise, the BBC is allowing Netflix to air episodes of "Top Gear," but only after a six-month wait.
The move ahead of Netflix's U.K. launch shows broadcasters are already making strides to ensure there is limited disruption to their service model.
The company may also be wary about competition within the region. Amazon.com's (Nasdaq: AMZN) recently-acquired Lovefilm is making big strides in the market, locking down deals with Sony (NYSE: SNE) and Warner Bros. for movies like "The Social Network" and "Sex in the City 2." Other competition includes Channel 4, the BBC, British Sky Broadcasting Group Plc and ITV.
Similar to the U.S., many UK studios already have deals in place, or are bringing content out to their own websites and streaming service.
While Netflix will undoubtedly still grab some market share starting in 2012 when the U.K. service rolls out, the question is all about expansion and deals, and the U.K. might be a key indicator for what might happen over the rest of Europe.
Netflix shares are up about 1 percent pre-market Friday.
According to reports Friday, U.K. broadcaster ITV plc is said to eschew including its more popular TV shows in a recently negotiated deal with Netflix. Likewise, the BBC is allowing Netflix to air episodes of "Top Gear," but only after a six-month wait.
The move ahead of Netflix's U.K. launch shows broadcasters are already making strides to ensure there is limited disruption to their service model.
The company may also be wary about competition within the region. Amazon.com's (Nasdaq: AMZN) recently-acquired Lovefilm is making big strides in the market, locking down deals with Sony (NYSE: SNE) and Warner Bros. for movies like "The Social Network" and "Sex in the City 2." Other competition includes Channel 4, the BBC, British Sky Broadcasting Group Plc and ITV.
Similar to the U.S., many UK studios already have deals in place, or are bringing content out to their own websites and streaming service.
While Netflix will undoubtedly still grab some market share starting in 2012 when the U.K. service rolls out, the question is all about expansion and deals, and the U.K. might be a key indicator for what might happen over the rest of Europe.
Netflix shares are up about 1 percent pre-market Friday.
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