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For the past few years, the big TV networks made easy money selling their reruns to Netflix.
Now they're having second thoughts.
So are they ready to pull back on sales to Netflix and other digital services in the hopes of keeping their core business intact?
Investors will be looking for an answer to that question this week and next, as most of the big entertainment companies report their Q3 earnings and take questions from analysts. But several key TV executives have already signaled that they're going to stop selling their best stuff to digital services — particularly Netflix.
Binge-viewing has been established as the new method to consume content--that is the genie they need to stuff back in the bottle.
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Can the TV Guys Put the Netflix Genie Back in the Bottle?
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Sin has many tools, but a lie is the handle which fits them all.
(Score: 5, Insightful) by iamjacksusername on Thursday November 05 2015, @02:22AM
Netflix used to have everything because the content producers did not see any real revenue in streaming so Netflix was able to license the streaming lights fot close to $0. And, because of that, they were able to license everything. Now, the content producers and the cable companies (because they are the same) are seeing their revenues drop so they are taking a two-fold strategy
1) Maximize revenue for existing customers. They know many customers will keep paying exorbitant cable fees because they can afford to and they really want to "watch" TV. People like my parents - they have kept their cable because of 2 channels. Cable companies will keep raising rates as quickly as possible because they know there is only a few years of life left in the cable TV mode (link: http://arstechnica.com/business/2015/09/comcast-raises-prices-just-as-ceo-says-you-cant-raise-the-price-forever/ [arstechnica.com] )
3) Create their "own" streaming startup. The goal of this startup is not to have their own streaming service - that's hard to do and ultimately too expensive. No, the real profit is in the content production; they use their own streaming startup to "prove" the value of their content so, when they do ulitamtely license to Netflix or Amazon, they maximize the value of their content.
Now some prognostications:
1) HBO GO will be the dominant revenue producer for HBO by 2019.
2) Netflix will find its feet with content production in the next two years. They have been a bit wobbly but they are working on it and will come up with the right formula.
3) When Netflix has found its feet with original content, they will make a major international push. Right now, Netflix is not known internationally (outside of Canada). Once they have enough original content to support a monthly subscription, they will make a push. They do not want to be held hostage to rights negotiations from content producers in every single market.
4) A CBS app could work. "As a result of the Viacom/CBS corporate split, as well as other acquisitions over recent years, CBS (under the moniker CBS Studios) owns a massive film and television library spanning nine decades; these include not acquired material from Viacom and CBS in-house productions and network programs, as well as programs originally aired on competing networks. " (link: https://en.wikipedia.org/wiki/CBS [wikipedia.org] )
(Score: 3, Informative) by coolgopher on Thursday November 05 2015, @03:25AM
Actually, Netflix is kinda big down here in Australia too.
(Score: 0) by Anonymous Coward on Thursday November 05 2015, @04:18AM
That's what she said
(Score: 0) by Anonymous Coward on Thursday November 05 2015, @06:35AM
I didn't know that. Is that relatively recent? I mentioned Netflix to some young travelling Australians (people whom you would expect to be in the target demo) a few years ago but they hadn't heard of it.