Netflix said it plans to let its deal to carry Nickelodeon, BET and MTV content expire next month, even though it continues to discuss licensing certain shows.
The video subscription service said it has been moving away from broad, multi-year deals with networks and cable channels, in favor of more selective licensing arrangements to carry programs that will work best for its subscribers.
Netflix Chief Executive Reed Hastings, in a letter to shareholders, said a recent deal with Warner Bros. Television illustrates the subscription service's more handpicked approach to programming. It reached a deal with the studio to bring such shows as NBC's "Revolution," Fox's "The Following" and A&E's "Longmire" to subscribers earlier.
"Many of our earliest deals were with networks and cable networks and included some shows that have not proven successful," Hastings wrote, adding that cable networks often hold back the most popular shows for as long as possible to keep cable and satellite distributors happy. "By dealing directly with producers of TV shows, we are better positioned to pick just those shows that we believe will work best, and secure rights that may be otherwise blocked by TV carriage and transmission deals."