|reply to jc100 |
Re: Why should TV providers fight content owners anymore?
It's only a matter of time before copyright holders slam Hulu and Netflix hard with higher licensing fees. They are both getting off paying a tiny fraction of what cable companies do and Netflix doesn't provide any advertising revenue either. That is not sustainable for networks should a massive influx of cord cutting happen.
They're already slamming Netflix hard enough that it barely eked out a 3% net profit last quarter. And that's actually up from 0.3% in the previous quarter.
When subscriber growth gets ahead of the licensing fees, Netflix can make a profit for a short period of time. However, this doesn't last, because Netflix has to pay a higher fee at the next license renewal negotiation.
It's the same treadmill -- just starting out from a lower number. Eventually the number will go up.
|reply to silbaco |
For everything else, there's transmission/sickbeard/couchpotato.
|reply to tanzam75 |
This is why Netflix is producing more of their own programming.