Netflix streaming video subscribers can watch “Man vs. Wild," “River Monsters," “Yes to the Dress" and other programs thanks to a two-year non-exclusive licensing agreement the beleaguered company inked with Discovery Communications.
The contract grants Los Gatos, Calif.-based Netflix access to prior-season series and specials, including an expanded selection of additional seasons of series from Discovery, TLC and Animal Planet, as well as Investigation Discovery, Science and Military Channel.
“Netflix is pleased to announce the renewal and expansion of our relationship with Discovery," Netflix chief content officer Ted Sarandos said in a statement.
Rebecca Glashow, senior vice president of Digital Distribution for Discovery Communications, characterized the agreement as “a terrific complement to our multi-channel video services and creates additional ways to earn value for our 25-year programming library."
The companies did not reveal the financial terms of the agreement – the latest of several pacts Netflix has announced over the last several months to expand and diversify its content of television programs and films.
Netflix announced the deal a few days after its chief executive, Reed Hastings, publicly apologized for the way in which the company communicated its decision to raise its prices and separate its DVD business from its streaming video unit.
Over the summer, Netflix dropped a bomb when it announced a 60 percent price hike for customers who subscribed to both the DVD and streaming video offerings. That decision infuriated many customers, and Netflix – whose stock price earlier this year skyrocketed to $300 – recently lowered its guidance for the third quarter as a result of anticipated defections. The company’s decision to formally separate its DVD business from its streaming video unit – renaming the DVD business “Qwikster" – also has faced criticism on Wall Street.
Shares of Netflix (NFLX: NASDAQ) closed Wednesday at $128.50, reflecting just a fraction of the price in July when it seemed Netflix could do no wrong and would continue to record impressive growth in its subscriber base and stock price. Netflix last week lowered its guidance by 1 million customers and expects to end the third quarter with 24 million domestic subscribers. The latter figure is down from 24.56 million U.S. customers in the second quarter, meaning Netflix expects a loss in its customer base for the first time in years.
Earlier this month, the company launched service in 43 countries in Latin America and the Caribbean.
