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Much beleaguered streaming service Netflix got some good news today, with a renewal and expansion of a content deal the company had brokered with Discovery Communications, parent company of the Discovery Channel.
Also under the Discovery Channel umbrella is TLC, Animal Planet, ID: Investigation Discovery, and the Military Channel. Under the terms of the deal- for which financials were not disclosed- Netflix will be able to provide shows like Man vs. Wild, River Monsters and How It’s Made to its streaming subscribers. Discovery Communications CEO David Zaslav spoke about the deal at a Goldman Sachs media conference Wednesday, acknowledging concerns of “cannibalization” of content and audiences while remaining positive about the effects of the short-term deal. Per the Wall Street Journal:
Mr. Zaslav said it has the option to extend the two-year deal, which has “meaningful economics,” for an additional year, but it is a purposely short-term arrangement to allow Discovery to assess whether the benefits outweigh any costs, such as cannibalization of viewers who tune into its channels and drive advertising revenue.
Zaslav says Discovery and Netflix “don’t know” exactly how the deal will shake out as far as effects, pointing to a raise in ratings on other networks when newer media viewing options were added.
