Mexico's Televisa agrees Netflix Latam deal

Tue Jul 26, 2011 5:25pm EDT

* Agreement is for content first broadcast 1 year ago

* Netflix will offer 3,000 hours of Televisa shows

MEXICO CITY, July 26 (Reuters) - Mexican broadcaster Grupo Televisa (TLVACPO.MX) said on Tuesday it has agreed a distribution deal with U.S. movie rental company Netflix (NFLX.O), which will launch in Latin America later this year.

Televisa said it will provide Netflix with about 3,000 hours of soap operas and other programs a year after their first broadcast.

"This is an important first step in Televisa's plan to monetize its content library, which today includes more than 50,000 hours available for distribution through digital media," the company said in a statement.

The terms of the deal were not disclosed and a Televisa spokesperson was not immediately available. A Netflix spokesman says the company does not comment on deal terms.

Netflix earlier this month said it will launch its online video service to 43 countries in Latin America and the Caribbean later this year. [ID:nN1E7640AP]

The Los Gatos, California-based company started in the United States as a mail-in DVD service, but Netflix now says the vast majority of its U.S. subscribers stream content on a range of devices.

Once considered a friend to TV and movie studios, media conglomerates have fretted over Netflix's popularity because it threatens traditional cable and satellite providers. (Reporting by Elinor Comlay and Tomas Sarmiento; editing by Andre Grenon)