Is Viacom pulling content from Netflix?

Curated Netflix streaming website Instant Watcher — as well as customers using Xbox Live and Google TV—  lists the bulk of Viacom’s content library as ready to expire effective May 22. However, those expiration notices are absent when accessing Netflix from a web browser.

If Viacom content expiration does occur, it would mean shows produced by Comedy Central, MTV, Nickelodeon and a few others will no longer be available online for Netflix subscribers.

The only consistent expiration notice seems to be the Southpark series, which is already available for free in its entirety on the official Southpark Studios website.

Streaming contract agreements between television networks and Netflix have expired in the past only to return weeks (or sometimes days) later, but recent actions by Viacom and its parent company CBS may suggest a more permanent disappearance.

If Viacom chooses not to renew its arrangement with Netflix, it may be in response to its recently inked deal with Hulu, which allows Hulu’s premium service subscribers to watch new episodes of programs as well as a backlog of old television shows.

Since Hulu shares advertising revenue with content partners, it would make more sense to cut Netflix out of the picture so Hulu Plus is the sole platform to watch Viacom programing. Otherwise, Viacom’s cut of the ad revenue may suffer due to viewers choosing the commercial-free stream on Netflix.

Also, I’d find it hard to believe content would be removed from Netflix because Viacom was asking for more money. Netflix CEO Reed Hastings has said many times in the past that they are willing to pony up the cash to provide as much content to subscribers as possible. So, I don’t know why this particular situation would be any different.

However, if Viacom does want significantly more money, Netflix may opt to negotiate individual deals for certain programs that may fare better than others. This is more or less what happened with Viacom’s parent company CBS reworking its Netflix deal for Showtime programing, which revised the terms of streaming for shows like Dexter and Californication. I’m sure if Netflix wanted to pay for the projected loss of Showtime subscriber revenue, a deal would have been forged.

Either way, it’s definitely in Netflix’s best interest to retain the bulk of the Viacom library that is listed as expiring — especially all of the children’s programming. If Netflix wants to roll out family subscription plans, not having Dora the Explorer and Blue’s Clues in its streaming library would be a huge blow.