Netflix Amasses 36 Million Streaming Members, Ends Viacom Pact

LOS GATOS: Netflix added more than 3 million streaming members in the first quarter of 2013, bringing the total to 36 million-plus, the company unveiled in its Q1 financials, where it also announced that it is letting its pact with Viacom for Nickelodeon, BET and MTV content expire.

Netflix reports strong growth with its U.S. streaming business for Q1, when it added more than 2 million members. During the period, the company entered into a multi-year licensing agreement with Turner Broadcasting and Warner Bros. TV group. It also did a deal with Fox Television Studios to bring season three of The Killing to U.S., Canadian and Latin American members 90 days after the season finale on AMC. In the U.K., Ireland and Nordic countries, new episodes will be debuting exclusively on Netflix just days after their U.S. broadcast. As for Viacom, however, Netflix says that as it increases its focus on exclusive and curated content, "our willingness to pay for non-exclusive, bulk content deals declines." It is therefore letting its broad arrangement with Viacom Networks expire at the end of May, but adds: "We are in discussions with them about licensing particular shows but have yet to conclude a deal."

The company’s international membership grew by 1 million during the quarter, to a total of 7.1 million. Netflix says that it is planning additional European market launches during the second half of the year.

This year has already been quite significant for the company, as February marked the premiere of House of Cards, all 13 episodes of which were made available at one time. "Our decision to launch all episodes at once created enormous media and social buzz, reinforcing our brand attribute of giving consumers complete control over how and when they enjoy their entertainment," the company said. Then came the April 19 launch of Hemlock Grove, which followed the same model. Next up is the return of the comedy cult favorite Arrested Development, with all 15 episodes coming May 26. Also coming up are Orange is the New Black, Derek and season two of Lilyhammer. "Long term, we believe the value of our original series in driving acquisition and retention improvements will be borne out as we add more seasons of already popular shows like House of Cards and further series. Harry Potter was not a phenomenon in book one, compared to later books in the series."