Netflix has grown from a company that mails DVDs to its subscribers to a dominant force in online video streaming. The company announced this week it has struck a deal with CBS Corp to give its users access to classic television shows from the network's archives.The deal between CBS - a division of Sumner Redstone's Viacom - and Netflix will soon benefit subscribers to Netflix who will be able to watch "Star Trek," "Cheers," "Twin Peaks" and "Family Ties" through its Watch Instantly service.
The agreement between the two companies will cover the next two years and is non-exclusive; Netflix charges $7.99 per month for its base service of unlimited streaming. Nonetheless, the deal does not include many shows currently airing on the network. According to analysts, CBS is worried streaming its hit shows like "Mike and Molly" would hurt their rerun value.
The value of the deal was not disclosed, but the Los Angeles Times Business Blog says it could be worth up to $200 million; CBS has the ability to extend the deal for an additional two years. Scott Koondel, the president for television distribution at CBS, said the "deal recognizes the increasing value of our content in today's marketplace."
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