Netflix reportedly licensed HBO's 'Sex and the City'

HBO leases one of its most valuable series to Netflix.

Each season of “Sex and the City,” the HBO comedy that aired from 1998 to 2004, will stream for the first time on Netflix in early April, according to three people familiar with the deal.

HBO had a long-standing policy of not licensing its shows to Netflix until last year, when it sent titles like “Six Feet Under,” “Insecure,” “Band of Brothers,” “The Pacific” and “Ballers.” Several of these older series quickly jumped into the Top 10 most-watched streaming lists after appearing on Netflix.

Now “Sex and the City,” which has been licensed to cable networks, will also be offered on Netflix. It was not clear how much Netflix will pay for the license of the series, one of the most illustrious titles in HBO's library.

Unlike the other series that HBO has licensed to Netflix, “Sex and the City” is part of an ongoing franchise for the company. The “Sex and the City” spinoff series, “And Just Like That,” is streaming on HBO's streaming service and is prepping production for a third season. Executives said last year that “And Just Like That” ranked as one of the most-watched original shows on the Max streaming service. The spinoff will remain available only on Max, two of the people said.

For Netflix, the development is further evidence that the streaming service is benefiting from the tight financial situation facing many of its rivals. HBO's parent company, the debt-ridden Warner Bros. Discovery, gets a cash flow from the deal, while Netflix collects more beloved TV shows and movies, keeping people subscribing.

“I'm thrilled that the studios are becoming more open to licensing again, and I'm happy to tell them that we're open for business,” Netflix co-CEO Ted Sarandos said in a quarterly earnings call on Tuesday.

About five years ago, media companies like Disney and Warner Bros. Discovery many popular TV shows and movies, such as 'Friends', 'The Office' and 'Moana', from Netflix. The companies wanted to use popular series to encourage people to subscribe to their new streaming services, such as Disney+ (which debuted in 2019) and Max (2020).

But some of those companies, still trying to make meaningful profits from streaming and struggling with plummeting cable revenues, have changed course. Warner Bros. Discovery has licensed the films “Dune” and “Prometheus” in recent months, and Disney also leases films and older series to Netflix.

Many executives and industry analysts have concluded that the return to licensing underlines the diminishing opportunities other streaming companies face to overtake Netflix.

A media analyst, Jessica Reif Ehrlich of Bank of America, said last week that the increase in the number of licensed programs for Netflix was a “tacit acknowledgment that not all media companies will be able to match Netflix's global reach and scale in the field of streaming.”

A research firm, MoffettNathanson, told investors this week that Netflix benefited from a wave of licensed content last year, pointing to “Suits,” the old USA Network show that became an unexpected streaming hit, and “Young Sheldon,” a Warner Bros. Discovery sitcom added to Netflix in November.

“Despite the fact that this strategy makes Netflix stronger and more efficient, Netflix's competitors appear willing to feed the beast,” the company said.

Netflix reported on Tuesday that it has 260 million subscribers worldwide. Several competing streaming services only have a small portion of that. And while many companies lose money on their streaming services, Netflix made more than $5 billion in profits last year.

For years, HBO sold shows to syndication while holding them back from Netflix. “The Sopranos” appeared on A&E and “Curb Your Enthusiasm” was on TV Land. “Sex and the City” was carried by the E! Network, TBS and Amazon Prime Video.

“We need to protect the successful programs that we have,” HBO chairman Casey Bloys said at a news media event in November. “But I worked in television for so long that syndication used to be the pot of gold, that was the brass ring, which meant your show would go on and have a life after its first run.”

Mr Bloys noted that several titles saw a “surge” in viewership on Max after they started streaming on Netflix. “Sex and the City,” like all HBO shows on Netflix, will also remain available on Max.

“I don't think you'll see more recent shows anywhere else until years later, which is the syndication model,” Mr. Bloys said in November. “I feel comfortable with it and so far it seems to be working. But again, everyone is just experimenting at this point and trying to figure out how much is too much.