by: Elizabeth Balboa, Benzinga Staff Writer
Video creators and distributors are desperately attempting to staunch viewership and award losses to Netflix, Inc. NFLX 0.54%.
Now, the eminent disruptor could send radio into a similar frenzy.
Netflix has struck a deal with Sirius XM Holdings Inc SIRI 1.27% to collaborate on a new comedy channel, according to the Wall Street Journal. The agreement includes Netflix-produced original content with new and existing talent.
Why It’s Important
On the surface, ‘Netflix Is A Joke Radio’ will provide a fresh outlet and promotional stage for the streamer’s digital comedy portfolio while also arming SiriusXM with a new selling point to fend off Spotify Technology SA SPOT 0.79%.
“We believe our promotional partnership with SiriusXM will extend choice for listeners to sample and enjoy commercial-free content off of our service,” Netflix Chief Content Officer Ted Sarandos said.
The partnership will equip Netflix to address competitive threats, particularly as AT&T Inc. T 0.03% subsumes Time Warner, Walt Disney Co DIS 0.37% launches its own video streaming service, and Amazon.com, Inc. AMZN 0.04% just keeps growing.
Perhaps more importantly, the foray into audio signals Netflix’s intent to expand beyond video and to expand content access beyond the proprietary platform. Sirius XM will be the first distributor offering Netflix-branded material.
The partnership is scheduled to launch by the end of the year.
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