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silbaco
Premium
join:2009-08-03
USA

1 recommendation

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.

tanzam75

join:2012-07-19
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.

Rakeesh

join:2011-10-30
Mesa, AZ
reply to silbaco
For everything else, there's transmission/sickbeard/couchpotato.

biochemistry
Premium
join:2003-05-09
92361
reply to tanzam75
This is why Netflix is producing more of their own programming.