Disney Reaches $200 Million Deal with Netflix

Netflix is increasingly becoming a major player as an online content distributor:

Netflix is increasingly looking like a mainstream cable network willing to pay syndication fees for rights to distribute content. It paid $50,000 to $150,000 per episode to distribute ABC and cable television shows, the person familiar with the situation said.

The deal is bound to increase anxiety among cable, satellite and telecommunications companies, which pay a premium for ABC and cable shows. These traditional TV distributors are privately worried about the threat of so-called “over-the-top” services, which allow viewers to pay nominal sums to watch mainstream programming.

More deals like this will make cable services seem less and less relevant over time.

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