Netflix To Stream CBS, Showtime Content Outside U.S.


Bulking up its international content, Netflix inked a nonexclusive two-year pact with CBS to offer subscribers in Canada and Latin America a range of broadcast TV shows and episodes from Showtime Networks streamed over the Internet.

Financial terms of the deal were not disclosed. The two companies reached a separate deal for U.S. Netflix customers, announced in February.

In Canada, where Netflix had 970,000 customers as of the end of June, members will be able to access past seasons of Showtime's Californication, Dexter and The United States of Tara, current and full prior seasons of CW's 90210; as well as CBS library content including Numb3rs, Sleeper Cell and Twin Peaks.

Earlier this month, Netflix said it plans to offer streaming video services in 43 countries across Mexico, Central America, South America and the Caribbean later in 2011. 

In those regions, the new deal with CBS will make available previous seasons of series including 90210, Medium, Nurse Jackie, Californication and Dexter, plus library titles including the original Star Trek, Star Trek: The Next Generation, Charmed and Twin Peaks.

"We are pleased to be partners with Netflix as they rollout their
superb service to new markets," CBS Studios International president
Armando Nunez said in a statement.

Nunez pointed out that the
agreement "does not compete with U.S. ratings or Showtime's domestic
subscriber base." The Netflix deal "underscores the popularity of CBS
content around the world, and illustrates yet another meaningful way for
us to realize incremental value from our vast library of content," he

Netflix estimates international operating losses in the second half of 2011 of up to $80 million, which includes pre-launch expenses "for the one or more countries we may launch in Q1 2012," the company said.

In the U.S., Netflix anticipates much weaker growth in the third quarter of 2011 -- projecting between zero and 800,000 net adds domestically -- as a result of a significant change in pricing that will increase the price for customers who take both DVD-by-mail and Internet-streaming plans.