Netflix facing copyright hurdles

ONLINE ENTERTAINMENT group Netflix still faces important copyright hurdles before it enters the Irish and British markets early next year, according to industry sources.

Netflix plans to establish a presence here in early 2012, offering consumers an online film and television streaming service for a monthly subscription.

The group has announced a number of rights deals lately that will allow it to offer content to Irish viewers, but has not yet signalled if it has reached similar agreements with some of Hollywood’s “majors”.

Sources say its biggest challenge could be nailing down deals with the likes of Paramount, Universal and 20th Century Fox. They already have agreements with Sky, which offers their productions through its movie channels in Ireland and Britain.

The Sky Movies channels are available by subscription to Irish viewers on digital TV platforms.

The US group faces an added difficulty in that these companies may not necessarily be willing to agree terms with another subscription-based service, as they ideally want a “per-transaction” model, which would involve viewers paying for each individual film.

The big studios also see subscription as being at the end of a chain that begins with theatres and runs through DVD rental and retail release before satellite and subscription.

Netflix this week announced a deal with Lionsgate that will give it Irish and British rights, while it has also agreed terms with MGM.

Reports last week suggested it is in talks with Channel 4 and UTV.

The Lionsgate deal will give it rights for new releases such as The Hunger Gamesand a remake of Dirty Dancing, as well as a catalogue including Reservoir Dogsand The Blair Witch Project.

Netflix spokesman Steven Swayse said yesterday the company would let consumers know more about what it will offer closer to its launch. “We’re aware that we will be facing competition, but we have competitors in all our markets,” he said.

Netflix has yet to say what its subscription price will be. In the US, it charges $8 (€5.94) a month.