Amazon Promised Epix a Piece of the Future Growth Pie

Amazon sweetened its content deal with Epix by promising to
pay the movie company extra if and when Amazon Prime
subscriptions surpass a certain threshold, according to
Reuters. This deal indicates that Amazon is interested in
becoming a serious player in the SVoD OTT space up against
Netflix. The deal also offers a new model for OTT content
deals in the future.

“This could be considered online video deals 2.0,” Goldman
Sachs media analyst Drew Borst told Reuters. “After doing 1.0
deals mostly with Netflix and a few with Amazon, it dawned on
the media companies that they may want to get a piece of any
future growth too.”

Studios now have a new bargaining chip to use against Netflix
in future content deals.

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