Netflix's U.k. Plans Undermined By Amazon Deal

Netflix can't seem to catch a break, not even overseas. On Wednesday Amazon's LoveFilm, Netflix's chief online rental rival in the U.K., announced that it had signed an exclusive deal with Sony for the right to stream the studio's movies on the so-called second subscription pay-TV window. In the U.K. that means that Netflix will get the Sony pictures after they first go to the satellite service SkyTV. In a statement, LoveFilm CEO Simon Calver said that deals like the one with Sony "means we are able to keep expanding the service, offering our members high quality films and TV and the ability to watch as much as they want for one low monthly price." The exclusive deal between Sony and Lovefilm comes as Netflix prepares to launch in the U.K. and Ireland next year. But unlike Lovefilm, which offers a choice of either physical DVDs or streaming to view its library, Netflix is reportedly only offering streaming abroad. Assessing LoveFilm's putsch, observed, "Let's not assume that Netflix's foray across the pond will be as successful as its entry into Canada late last year and its push into Latin America and the Caribbean last quarter. Not only will Netflix be unable to compete with LoveFilm's disc-based rentals, but now its streaming catalog may be insufficient."



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