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HBO has signed a deal with the Universal Pictures. According to the deal, Universal Pictures' content will only be seen only on HBO for another 10 years.

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Universal Pictures extends Universal Pictures’ and Focus Features’ films on American premium cable television network Home Box Office (well known as HBO) TV. Recently HBO has inked a deal on Monday with the Universal Pictures. According to the deal, Universal Pictures’ content will only be seen only on HBO and not on Netflix, Starz and other OTT players for another 10 years.


HBO

The story doesn’t start suddenly. HBO signed a deal with Universal Pictures around 10 years ago. That deal enabled HBO to show Universal Pictures’ and Focus Features’ films on it. That deal has ended as 12 years have passed away. In the mean time, HBO’s strong rival Netflix, signed a deal with Disney Pictures. The deal enabled Netflix subscribers to see the exclusive movies of Disney, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, and Disneynature six to nine months later the theatrical of the films released. Netflix subscribers can see the films online, on mobile, and tablet devices, as well as connected TVs, Blu-ray players, game consoles, and other streaming boxes. All Netflix subscribers will get this exclusive access until 2016.

But as HBO’s previous deal with Universal Pictures has come to end, so HBO assumed Netflix now will go after Universal Pictures to sign a new deal. If that happens, HBO will see dooms day because HBO earns huge amounts of revenue through these films after paying between 10 percent to 12 percent of the U.S. box office for each film up to $200 million. So without delaying, HBO inked a deal on Monday again with the Universal Pictures. Though the financial terms of this agreement hasn’t been revealed, it’s been mentioned that Universal Pictures content will only be seen on HBO and not on Netflix, Starz and any other OTT players for 10 another years.

A spokesperson of HBO said, “Yes, it is exclusive. Netflix can’t touch it.” Besides dealing with Universal Pictures, HBO has also made some more exclusive deals with Warner Bros, Summit and Fox.

Rick Finkelstein, vice chairman and COO, Universal Pictures, said, “With our upcoming slate of films, HBO will continue to offer outstanding film content to their already vast library of movies, specials and award-winning original programming.”

HBO may not be able to compete on the same level as Netflix. But it clearly indicates that HBO is closely competing with Netflix.

Source: Forbes

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