Hulu Takes Aim at Original Series
Like Netflix, Will Try to Bypass Licensing Lock Out
As Netflix becomes more and more powerful
, they're facing greater and greater challenges from the companies whose legacy business models they threaten, with ISPs trying to impose low caps and high overages -- and broadcasters raising rates on licensing. To get around this, Netflix has been pushing into original content, recently snapping up the rights to a new show by David Fincher and Kevin Spacey
, the rights to the cancelled-but-popular Fox show Arrested Development, and developing a new gangster show starring Steven Van Zandt. This path is also appealing to Hulu, who plans to launch their first series this February
and is putting money aside for more original and exclusive programming.
Mark Cuban thinks cord-cutting is over-hyped Mark Cuban thinks cord-cutting is over-hyped and that all these bypass cable TV ventures will have limited success.
The Big Lie = Online video views is the same as number of TV viewers.
The views of a video on Youtube includes all the showings over an extended period of time. The ratings for SharkTank or any tv show all happened during the 1 hour the show was on the air. Which is exactly why TV is still a much more valuable advertising medium. Would you rather have your ad seen by the audience all within one hour, or over some unknown extended period ?
At CES this past week it was popular to hear about the explosion of online content and how people were going to be watching it on TV now that the new TVs have internet connectivity to all the great providers from Boxee, Netflix, Amazon , etc. These content distribution companies are not competitors to TV as a lot of folks would like you to believe, they are CUSTOMERS of TV show producers. They dont hurt the TV business, they have made the TV business far, far more profitable.
The TV business isnt dead. It really isnt even morphing. Sure people will watch video online. They will watch it on phones. They will download it. But the videos that online distributors pay the most for will be those that have done the best on traditional TV. Which in turn means more money for the production of shows.
Bottom line is that the better the TV business does, the better Hulu and Netflix will do because their primary content will be in greater demand
It will seem very cool that when you hit a button on your remote a list of distributors like Amazon, Hulu , Netflix and others will pop up for you to watch. Some folks will make good money with it. But it still wont be the competitor to TV that everyone predicts. Why ? Because just like no one took the time to change the blinking 12:00 on their VCRs back in the day, having to hit the internet button on the remote, or even worse, the input button on the remote will not be the path of least resistance for watching tv. Believe it or not, it will be far too much hassle for most people when compared to just turning on and watching TV the old fashioned way. And on top of that, distributors like Dish, Directv, Charter, Comcast, etc are working hard to improve their guide experiences which will be faster and easier than their online counterparts.
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I have seen some decent low value productions. One of which is the Guild, the other the Fallout 3 series called: Fallout: Nuka Break .
There are others as well.
Add to this, networks canning shows that fall below 5 million viewers. The minor networks will accept 1 to 5 million views per shows, so why can't the majors? If the show costs to much for 20-26 episodes, why not just order 13, per season. Seems to work for TNT, AMC, Sy-fy, etc.
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