A couple recent content deals only seems to confirm the importance of content to distribution. When Viacom didn't renew its streaming deal with Netflix, there may have been some thought that cable operators convinced them to give it that exclusivity. But that is clearly not the case as Viacom has struck a new streaming deal with Amazon Prime. "In a letter to customers, Jeffrey P. Bezos, Amazon’s chief executive, said the deal gave Prime Instant Video more than 250 TV seasons and more than 3,900 episodes from Nick Jr., Nickelodeon, MTV and Comedy Central." The quantity and quality of shows can certainly bring enormous value to the Amazon subscription service.
Another renewal sure to please football fans, Verizon Wireless and the NFL have renewed their streaming service. DirecTv may get all the games on TV, but Verizon Wireless once again has the streaming rights. And for those hardcore fans that need their fix away from the TV set, Verizon can deliver an exclusive content experience.
It is these types of content deals, offering exclusivity in the streaming space, that further differentiates and adds value to the online subscription model. Whether consumers cut their cable cord to rely on streaming solely for their viewing entertainment or add these streaming services to their entertainment budget may just be the question that haunts cable operators.
With competition growing in the online space, content deal negotiations will only grow and the costs for rights will only increase. Content is King in the battle for distribution growth.