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Netflix to Spend 15% of Licensing Budget on Original Series
Will That Make Up for Lost Viacom, Other Content?
by Karl Bode 09:30AM Friday May 31 2013
Netflix, Amazon and Hulu all hope that creating original series will be a way to significantly reduce licensing costs, though the quality of the fare they've presented so far has seen mixed results. Netflix seems pleased with the returns they've seen from shows like "Arrested Development," "House of Cards" and "Hemlock Grove," and now says they plan to spend 15% of the company's content cash on original series moving forward. While some of these shows are welcome, they may not be enough to counter the increasingly fractured viewing options caused by exclusive content arrangements, or the fact that users keep losing content options (like Netflix's decision to not renew their license with Viacom).

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spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1

Knock your self out...

I just cancelled my sub. due to poor titles available.

morbo
Complete Your Transaction

join:2002-01-22
00000

2 recommendations

Re: Knock your self out...

Netflix is stinging from losing your 7.99 a month.

88615298
Premium
join:2004-07-28
West Tenness

1 recommendation

said by spewak:

I just cancelled my sub. due to poor titles available.

Ever think that is due to the content holders withholding content from Netflix to keep their old fashioned business models alive? So yeah you go and keep helping them do that.

QuikAnonPost

@comcast.net

Re: Knock your self out...

LOL

Hey .. you know it was said back at the time, 2005, that if everyone that watched Star Trek Enterprise could send in just $5 .. it might have even been $3 .. they could have payed for an entire next season (rather than cancelling). I never checked their math but recall thinking the concept was amazing. -- And now, here we are?

gatorkram
Need for Speed
Premium
join:2002-07-22
Winterville, NC
kudos:3
Reviews:
·Suddenlink

Bring it on..

I hope they continue to bring quality programming to their lineup.

What I'd really like to see happen, is other networks doing commercial free shows. The age of dvr and commercial skipping should be a thing of the past.

House or Cards was good, hope they make more. Hemlock Grove is alright, better than the other Vampire/Werewolf stuff I've seen in the past. Not looked at the Arrested Development yet, I only saw a few of the original show, but it's on my list.

I wish HBO and Showtime and the likes would offer their shows up like netflix does, to view all at once, and via roku or similar device. I'd like to see shows like Weeds and Californication without having to both subscribe to tons of extra cable packages and then wait it out each week as they slowly spoon-feed us the episodes.
--
What the heck is a GatorKram? »www.gatorkram.com
zod5000

join:2003-10-21
Victoria, BC
Reviews:
·Shaw

Re: Bring it on..

said by gatorkram:

What I'd really like to see happen, is other networks doing commercial free shows. The age of dvr and commercial skipping should be a thing of the past.

I often wonder what it will take to make this happen. Over the past 20 years there has been a large increase in channels, which decreases viewership on any given channel. In the last 10 years there's been a big shift into alernate ways to watch tv shows (both legal and illegal). If you combine them both, TV ratings have completely plummuted compared to the pre-internet, pre-500 channel era.

As a result of lower viewership, ad revenues are down. TV channels are increasing their carriage fees to compensate. At what point does Ad revenue get low enough, its not worth the effort anymore?

To me, it seems completely moronic to shell out so much money for tv laced with commericials....
Bob61571

join:2008-08-08
Washington, IL

1 recommendation

Netflix doesn't get it

They just need to expand their streaming library, to at least slightly resemble their DVD library.

Netfix is wasting their $ on these new shows.

cableties
Premium
join:2005-01-27

Re: Netflix doesn't get it

They DO get it. They are investing in "original programming" (see early HBO) to make revenue on IP. They are getting good talent, writing and most of all, advertising.

Talent/movie licensing is changing in that what is on a DVD/Bluray (eventually medium will die), can't always be streamed without new contracts or changes. If you have a problem with the lack of streaming titles, it is not the fault of Netflix, but the greed of studios (and the fragmentation of studios spinning their own services for their own content).
IF you really want Netflix to have more streaming titles, are you willing to increase the monthly cost?
--
Splat

Majestik
World Traveler
Premium
join:2001-05-11
Tulsa, OK

1 recommendation

Re: Netflix doesn't get it

said by cableties:

They DO get it. They are investing in "original programming" (see early HBO) to make revenue on IP. They are getting good talent, writing and most of all, advertising.

Talent/movie licensing is changing in that what is on a DVD/Bluray (eventually medium will die), can't always be streamed without new contracts or changes. If you have a problem with the lack of streaming titles, it is not the fault of Netflix, but the greed of studios (and the fragmentation of studios spinning their own services for their own content).
IF you really want Netflix to have more streaming titles, are you willing to increase the monthly cost?

Maybe scifi shows like Firefly will still be on if Joss Whedon and others had gone this route with Netflix.
--
The adventure continues...Sanctuary....
jca2050
Premium
join:2002-02-04
Dallas, TX

Re: Netflix doesn't get it

They did revive a classic show that ended prematurely, maybe they'll do the same with FF.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: Netflix doesn't get it

said by jca2050:

They did revive a classic show that ended prematurely, maybe they'll do the same with FF.

Not likely to happen as at least 3 of the stars are in "major" TV shows already.

Castle, Homeland, Suits.
--
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.

88615298
Premium
join:2004-07-28
West Tenness
said by Bob61571:

They just need to expand their streaming library, to at least slightly resemble their DVD library.

Netflix can only do that if the people that own the content ALLOW that to happen. They have vested interest in that NOT happening. The cost of Netflix outbidding HBO, Showtime, Starz etc for movies would mean having to at least double the monthly rate. We all know how that worked out over a$2 increase a couple of year ago. Also that doubling of the monthly rate assume 100% stay with Netflix. That won't happen even though $15 a month for movies that normally would be on HBO or Showtime etc is pretty good deal. So in reality Netflix would need to charge $20 a month. You up for that? Especially when those movies you so desperately want on Netflix you can get at RedBox for $1.20?

Omega
Displaced Ohioan
Premium
join:2002-07-30
Somerset, NJ
said by Bob61571:

They just need to expand their streaming library, to at least slightly resemble their DVD library.

Netfix is wasting their $ on these new shows.

I don't think you understand how licensing works.
--
What smells like blue?

jap
Premium
join:2003-08-10
038xx
said by Bob61571:

They just need to expand their streaming library, to at least slightly resemble their DVD library.

Netflix cannot buy something the owner won't sell them. That's the issue. They hate renting the physical media but have been unsuccessful in obtaining stream licenses for many good movies. In fact most good movies by my definition of 'good'
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

Bah

Looks like Amazon Prime, Hulu Plus and Netflix is all being ditched by the major companies. It seems Redbox will be the winner at the end. They have all new releases .
rradina

join:2000-08-08
Chesterfield, MO

Distribution and Creation

Should they be separate? Didn't they used to be separate before regulation allowed them to commingle?

If cable dies and I the consumer has to spend $8/month with 10 separate exclusive content distributors, we might as well stick with cable's approach.

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: Distribution and Creation

said by rradina:

Should they be separate? Didn't they used to be separate before regulation allowed them to commingle?

If cable dies and I the consumer has to spend $8/month with 10 separate exclusive content distributors, we might as well stick with cable's approach.

That is the reality that many ignore. THEY WON'T SAVE MONEY under the new setup. Unless you are one of those few people who REALLY watch little TV and not just claim you do.
--
"If you want to anger a conservative lie to him.
If you want to anger a liberal tell him the truth."
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

1 recommendation

1 for 3

House of Cards- Excellent. 9/10

Hemlock Grove- Unspeakably terrible. 1/10

An adult-targeted werewolf series centered around high school drama and teen angst? What a waste. With no redeeming qualities whatsoever, everyone associated with that steaming pile should be publicly tarred and feathered for crimes against television.

Arrested Development- Haven't watched, but at least they tried.
jjeffeory

join:2002-12-04
USA

Re: 1 for 3

I enjoyed Hemlock Grove 8/10 and haven't watched House of Card ?/10.

Different Strokes...

QuikAnonPost

@comcast.net
Arrested Development is like a magic trick. Picture the movie Vantage Point, but funny. I'm waiting for the 'not-DVD' commentary to see how many/few days, or teams, it took to film something so beautifully and ridiculously (funny) intertwined..

88615298
Premium
join:2004-07-28
West Tenness
said by dynodb:

House of Cards- Excellent. 9/10

Hemlock Grove- Unspeakably terrible. 1/10

An adult-targeted werewolf series centered around high school drama and teen angst? What a waste. With no redeeming qualities whatsoever, everyone associated with that steaming pile should be publicly tarred and feathered for crimes against television.

Arrested Development- Haven't watched, but at least they tried.

Firstly not every new HBO show is good. When HBO first started to get into original programing people thought of HBO like they do Netflix now. And honestly those first shows were hit and miss then too. Mostly miss.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1
Lilyhammer was pretty decent, and they are bringing it back for a second season.

It's about a US mob boss going into the witness protection program and getting sent to Lilyhammer Norway.

»en.wikipedia.org/wiki/Lilyhammer
--
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.
elray

join:2000-12-16
Santa Monica, CA

Deviating from their core

Netflix is the online video-rental store, with a fixed cost.
That's the appeal.

They are *not* HBO, Showtime, or A&E. They should not dilute their main product pursuing such nonsense.
prairiesky

join:2008-12-08
canada
kudos:2

Re: Deviating from their core

the problem is that they are subject to the whims of the content producers. They're the ones that can make or break netflix. so in an effort to remove that picture, they want to become self sufficient and integrate vertically. makes sense to me
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: Deviating from their core

said by prairiesky:

the problem is that they are subject to the whims of the content producers. They're the ones that can make or break netflix. so in an effort to remove that picture, they want to become self sufficient and integrate vertically. makes sense to me

Indeed, there is nothing unique about Netflix; they are nothing but a distributor, and a weak one at that. So they need to bolster their content library, by stepping up and paying for it, not making more of it disappear by defunding it.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: Deviating from their core

I guess they could cave into the content providers and pay their high fees. It would mean Netflix would have to jack up their prices, perhaps to 20 bucks a month.
How long do you think Netflix would last at 20 bucks a month?
--
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: Deviating from their core

said by Snakeoil:

I guess they could cave into the content providers and pay their high fees. It would mean Netflix would have to jack up their prices, perhaps to 20 bucks a month.
How long do you think Netflix would last at 20 bucks a month?

It isn't caving, its negotiating.

People will pay $20 a month, if they get the content they want.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: Deviating from their core

How many would though?

I would, if Netflix was to start streaming porn. They already stream "art" films that are nearly porn.
But I don't think Netflix wants that type of hassle as the prudes would drop it because of the adult content. Despite the fact it currently has "adult" content.

But not everybody would.

If Netflix were able to rebroadcast TV shows the day after they aired, plus stream the previous seasons of them, plus stream movies as soon as they were released on DVD,
I'm sure some would be willing to pay 20, 40, 60 bucks a month.
But not everyone that currently is a subscriber.

So maybe a tiered approach? Pay more get more?

--
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.

88615298
Premium
join:2004-07-28
West Tenness
said by elray:

Netflix is the online video-rental store, with a fixed cost.
That's the appeal.

They are *not* HBO, Showtime, or A&E. They should not dilute their main product pursuing such nonsense.

When HBO and Showtime started to do original programing everyone say they were crazy they should stick with what they do best and that is show unedited commercial free movies that were in theaters a year or two before. The only original programing that was tolerated were one off comedy specials like George Carlin or Gallagher. The concept of HBO or Showtime actually producing a scripted series was met with dismissiveness and contempt. None of their early programs weren't even eligible for Emmy's because it wasn't "real" TV programming for whatever that means.

El Quintron
Resident Mouth Breather
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Etobicoke, ON
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·TekSavvy Cable
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Re: Deviating from their core

said by 88615298:

The concept of HBO or Showtime actually producing a scripted series was met with dismissiveness and contempt.

Don't forget who you're talking to, he's got a vested interest in the BDU model, so anything that potentially encroaches, or innovates ahead of that dinosaur is bound met with what you keenly observed as dismissiveness and contempt.
--
Support Bacteria -- It's the Only Culture Some People Have
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

Re: Deviating from their core

said by El Quintron:

Don't forget who you're talking to, he's got a vested interest in the BDU model, so anything that potentially encroaches, or innovates ahead of that dinosaur is bound met with what you keenly observed as dismissiveness and contempt.

What's the BDU model, and what vested interest are you referring to?
silbaco
Premium
join:2009-08-03
USA

Original Content

What Netflix should do... is buy rights to Legend of the Seeker, then scrap the series and start over actually basing it off the books. I have little doubt the series would be very successful.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: Original Content

Agreed, I wonder who holds the rights? And if Netflix could do that.
silbaco
Premium
join:2009-08-03
USA

1 edit

Re: Original Content

I think it is owned by one of ABC's subsidiaries, but last I had heard they were flexible regarding the future of the series. I think Netflix could get a hold of the rights easily enough. The only problem I foresee is production cost. If they actually followed the books, I wouldn't be surprised if the cost to produce some of those episodes would rival or exceed the costs of producing some episodes for Game of Thrones. I don't know if Netflix would be willing to sink that much money into a series.
bidger

join:2009-12-23
Elmira, NY

2 recommendations

Just glad...

I'm just glad that the folks running Netflix have more vision than the know-nothing, nay-sayers encountered on Internet forums.

anon999

@rr.com

buying a network

Can Netflix buy out a network like A&E or Discovery? I'd pay 20 a month just for those. My cable company wants $68 a month for "basic"

That's just driving people to torrent instead of pay for tv imho