Netflix To Bring Comedy To New Sirius XM Channel
Video creators and distributors are desperately attempting to staunch viewership and award losses to Netflix, Inc. (NASDAQ: NFLX).
Now, the eminent disruptor could send radio into a similar frenzy.
What Happened
Netflix has struck a deal with Sirius XM Holdings Inc (NASDAQ: SIRI) to collaborate on a new comedy channel, according to the Wall Street Journal. The agreement includes Netflix-produced original content with new and existing talent.
Why It’s Important
On the surface, ‘Netflix Is A Joke Radio’ will provide a fresh outlet and promotional stage for the streamer’s digital comedy portfolio while also arming SiriusXM with a new selling point to fend off Spotify Technology SA (NYSE: SPOT).
“We believe our promotional partnership with SiriusXM will extend choice for listeners to sample and enjoy commercial-free content off of our service,” Netflix Chief Content Officer Ted Sarandos said.
The partnership will equip Netflix to address competitive threats, particularly as AT&T Inc. (NYSE: T) subsumes Time Warner, Walt Disney Co (NYSE: DIS) launches its own video streaming service, and Amazon.com, Inc. (NASDAQ: AMZN) just keeps growing.
Perhaps more importantly, the foray into audio signals Netflix’s intent to expand beyond video and to expand content access beyond the proprietary platform. Sirius XM will be the first distributor offering Netflix-branded material.
What’s Next
The partnership is scheduled to launch by the end of the year.
Related Links:
Sirius Downgraded, But Analyst Sees Additional Upside In The Satellite Radio Stock
How Pandora Premium Access Is Faring As Competition Intensifies
See more from Benzinga
The Sky Bidding War: What It Means For Any Potential Fox Acquisition
Nomura Bullish on Alphabet, Facebook, Spotify: 'Still Some Room For Growth'
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
