July 26 (Bloomberg) -- Netflix Inc., the mail-order and online film-rental service, agreed to carry programs by Grupo Televisa SA, the world’s largest Spanish-language broadcaster, as it expands into Latin America.
The multiyear deal calls for providing 3,000 hours of programming a year, including the soap operas known as telenovelas, Televisa said today in a statement to the Mexican stock exchange. Netflix plans to start the service by the end of the year, the Mexico City-based company said.
The Televisa agreement and a three-year accord with TV Azteca SAB give Netflix programs from Mexico’s two dominant broadcasters, which represent almost all of the nation’s over-the-air TV audience. Netflix is entering Latin America to add sources of revenue and funds to acquire more film rights.
Netflix, based in Los Gatos, California, fell $14.62, or 5.2 percent, to $266.91 at 4 p.m. New York time in Nasdaq Stock Market trading after its third-quarter profit forecast trailed analysts’ estimates. Televisa dropped 21 centavos to 51.85 pesos in Mexico City.
TV Azteca is providing 1,000 to 1,500 hours of telenovelas and dramatic series to Netflix starting in September, an executive for that Mexico City-based broadcaster said yesterday. The executive can’t be named under company policy.
Neither broadcaster disclosed financial terms of their agreements. Televisa said its programs being provided to Netflix will be available a year after they’ve been aired on the broadcast network. The agreement covers Latin America, including Brazil, and the Caribbean, Televisa said.
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