(Adds the fourth and fifth paragraphs with details of a
licensing agreement with CBS. Updates stock quote in the final
paragraph.)
Netflix Inc. (NFLX) will allow users to stream the first four
seasons of the hit television series "Mad Men," a critically
acclaimed show about a 1960s advertising agency, as the company
continues to boost its online offerings.
The company, which began as a DVD-by-mail company, has evolved
into a video-streaming power. The move to allow streaming of the
earlier "Mad Men" seasons comes after Netflix earlier this month
disclosed plans to separate its streaming and mail-order DVD
subscription plans in the U.S., raising the cost for subscribers
who want both services by 60%. The company plans to use the price
rise to help fuel the acquisition of television shows and movies
for its streaming service.
The Wall Street Journal in April reported Netflix was close to
finalizing an agreement with Lions Gate Entertainment Corp. (LGF),
which produces the show. At the time, people close to the matter
said the deal was worth between $75 million to $100 million to
stream all seven seasons. So far, four seasons of the show have
aired on AMC, although creator Matthew Weiner has said the show
will run for seven.
Separately, Netflix and CBS Corp. (CBS) announced a two-year,
non-exclusive international licensing pact that will allow users in
Canada and Latin America to stream some of the broadcasting
company's television shows. Terms of the deal weren't
disclosed.
The content deal is part of Netflix's plan to gear up a launch
in 43 countries across Mexico, South America and the Caribbean
later this year. Under the CBS deal, previous seasons of "Dexter,"
"Californication," "Medium" and other titles will be available to
Latin American users to stream.
On Monday, Netflix reported its second-quarter earnings rose
57%, although costs to win customers rose from the prior quarter
and its rate of lost subscriptions increased in the U.S.
Shares were up 1.5% to $270.90 in premarket trading. The stock
hit an all-time high of $304.79 earlier this month.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com