Thursday, December 16, 2010

Netflix Encounters Complexity of Content Rights

Netflix said some of its deals with studios and other content providers prevent it from offering its streaming video service on TiVo DVRs distributed by Suddenlink Communications and other multichannel video programming distributors.

"Only those TiVo units sold in the retail channel are licensed to offer the instant streaming functionality from Netflix," Netflix spokesman Steve Swasey said.

TiVo apparently does not have the rights to offer Netflix on the boxes provided to Suddenlink because Netflix agreements with numerous content providers don't extend to devices distributed by cable companies and perhaps others.

It is likely similar issues will develop as more providers enter the streaming video business, and discover the complexity of rights agreements.

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