WASHINGTON, February 24, 2011 - The online video service, Netflix, and television network, CBS, announced a deal Tuesday that will bring selected CBS shows to Netflix' online video library by April of this year.
The non-exclusive, 2-year licensing deal will bring a variety of shows, from the last 50 years to Netflix' "Watch Instantly" feature, which allows customers to stream video live from the internet. CBS has the option to extend the deal for an additional 2 years.
The announcement comes in the midst of a peering dispute between Internet service providers (ISPs), Comcast and Level 3 Communications. Level 3, which provides Internet service to stream Netflix' video library, complained late last year when Comcast imposed a service to transfer Netflix' traffic originating on Level 3 networks to Comcast's customers.
Peering arrangements allow networks to transfer traffic to one another, typically at no cost.
Regarding the CBS deal, Ted Sarandos, Chief Content Officer for Netflix, noted that the deal would make Netflix the first online video subscription service to feature shows from all four major networks.
"We are thrilled to be bringing CBS shows to Netflix and are looking forward to growing our relationship over time," said Sarandos.
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