Users will notice that the already dwindling supply of Netflix movies will get even smaller. This is due to Netflix letting their Epix contract lapse. And with a press released entitled "Why You'll See Some High Profile Movies Leave Netflix US Next Month," it is easy to see why people are spooked.
What does this mean for Netflix? Well, it simply means that some really high profile movies will no longer be available, such as The Hunger Games, World War Z, Transformers: Age of Extinction, and many more. It was also announced shortly after Netflix confirmed that the deal was out that Hulu would carry Epix movies instead.
Epix is owned by Studio Partners 3, a combined venture of Viacom, Lionsgate, MGM, and Paramount Studios, Vox reports. The lapsed deal forces these movies to move to Hulu, much to the company's delight. Reportedly, 75 million Epix movies are viewed by Netflix subscribers per month.
This seemingly self-destructive move has a pretty good reason behind it. Netflix is veering away from its current position as a repository of any and all movies. It is taking a calculated risk with Epix as it begins to produce its own exclusive and high quality shows. For instance, shows with Ricky Gervais, Idris Elba, and Adam Sandler are already lined up.
Also, something big is coming up in 2016. Three years ago in 2012, Netflix inked a deal with Disney for streaming rights to their movies once they leave theaters and the entire back catalog as well. With 2016 coming up, this could really change the strategic positioning of Netflix in the world of streaming media.
This curated programming by Netflix is exactly what it wants and Disney will help them get there. Disney owns Pixar, Marvel, and LucasFilms and their deal is exclusive. Competitors like HBO or Showtime will not have access to these movies by next year.
