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The Economics of Netflix's $100 Million Show

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Re: The Economics of Netflix's $100 Million Show

#111
post #107

Earlier quoted context omitted.

>I don't understand hostility at DRM when it's used to secure a stream of something you don't own. Simple. See all arguments presented above. In short - it's unethical practice of preemptive policing which severely degrades usability and achieves nothing positive. It's based on implicit insulting treating users as potential criminals. Users naturally should be hostile to such disrespectful treating, and surely this s…

There's nothing unethical or insulting about preemptive loss prevention unless you go out of your way to read that into it. When I lock my front door, that doesn't mean I'm implying that my mailman is a thief. There's no benefit in over-dramatizing the situation. If you demand ownership of any data that comes over your connection, all you're doing is fostering an environment where we can't have nice things like Netfl…

We have a conceptual disagreement here. For me - DRM is similar to getting a book, which comes with an accompanying police robot which follows you around and allows you to read it only within certain periods of the day and prevents for example from photo copying. If you want to make this concept closer to renting, consider that book to be from the library. Does it make sense? No, because it's nonsense. And one would argue that it's unethical to use such preemptive policing which interferes with your activities and violates your privacy. DRM is exactly the same nonsense.

If you are talking about using doors - it's totally the opposite, usually it's DRM that violates privacy of users and is prone to all kind of abuse (example: https://en.wikipedia.org/wiki/Sony_BMG_copy_protection_rootk... ).

> If you agree to the terms of service that Netflix provides their video under, the content you stream from them absolutely and undeniably is not something that you own

It doesn't really matter how it's called ("owned" or not "owned"). Users have full right to use this data in the manner they want (like time or device shifting) if they do it for their personal needs and don't redistribute it to others. In most cases to allow such flexibility one needs to either get DRM free content, or to strip DRM from the DRMed one. It's especially important for people with disabilities who are mostly ignored by DRM schemes. Streaming is merely a convenience scheme, in comparsion let's say with simple download (i.e. it doesn't require you to store data and allows accessing it instantly in contrast to waiting for the download). Those who intend streaming as a way to restrict usage are wrong since they ignore users' rights on fair use of that content.

> If you demand ownership of any data that comes over your connection, all you're doing is fostering an environment where we can't have nice things like Netflix and Hulu

Not true. Nothing essential dictates Netflix or Hulu to use DRM except paranoid fear of piracy by content publishers which push them to use such nonsensical and unethical tools like DRM. And as was already pointed above - it doesn't even prevent piracy anyway. All it does - punishes the paying customers and shows disrespect to them. So - there is no such necessity for any content to be distributed on the net under DRM. And if some content distributors insist on using such methods - let them, but it should never be encouraged or proliferated by making it a Web standard. They need to be educated that it's a backwards and unethical approach. And people should be encouraged to avoid such distributors - for the sake of making a point that customers should be treated with respect and to show that unethical methods are unacceptable. Repsect is also a two way street. When distributors treat users with respect, users have incentive to support them more in return and to respect them back. Most distributors don't care about or never think about it. But those who do, are respected by users much more and it always pays back with more loyal customers.

Linux example only proves my point - DRM degrades usability (in this case for Linux users). DRM schemes will never be fully portable and will always restrict use cases.

Re: The Economics of Netflix's $100 Million Show

#112
post #81

Earlier quoted context omitted.

Not only this would be a distraction but I don't think it makes business sense for them. In my opinion exclusivity is key to their long term strategy in a streaming world. They already have the best distribution channel you can think of why would they need to licence their content?

Yes I think you are right about exclusivity. I think what they paid for House of Cards is significantly more than what they pay for other shows. That is really my questioning about the model. But yes, they paid the premium to not only show it, but for exclusivity. If you are right they could license it outside the US.

It would make sense if they had no intention to aggressively expand abroad. They are doing exactly the oposite. In the last two years they launched in 20+ countries. Like I said they have the ultimate distribution platform for their content and the cost of expending it abroad is marginal, a couple of CDN deals and some marketing.

Re: The Economics of Netflix's $100 Million Show

#113
post #87

I don't think its just a matter of economics, Netflix doesn't have a choice if they have to survive long-term. Thanks to the internet, the power is shifting from content providers to content creators and they risk turning into a dumb pipe at the mercy of whimsical broadcasters who can choose to stream their show directly to their viewers. Reed Hastings has said that it is a race for how fast Netflix can become HBO be…

Netflix's big long-term advantage is buying power. They have 30 million users spending $100/yr. Assume they spend half their income on content. That's $1.5bn/yr. That's a huge amount of money, and it's only going to get bigger as they grow and expand into new territories. Increasingly, Netflix revenue is so high that it will seem inconceivable for content owners to turn them down in a gamble to go it alone and increa…

They are spending about 71% on content. Before they hit 40M subscribers they could produce 13 hours of House of Cards level content per week. That would surely be something.

For 8$.

Re: The Economics of Netflix's $100 Million Show

#114

Earlier quoted context omitted.

I'll defend. 1. House of Cards was 13 "chapters" that have definite rhythm and flow. Every hour was a mini three act play and it would make sense considering at the end of the day, video is just scripts brought to life by an accomplished playwright, accomplished director, accomplished talent, and accomplished cast. 2. We don't live in that world anymore. We're a civilization on an escalating need for input stimulatio…

> And the impact of a well crafted moment in a show, I posit, is much more powerful sometimes than a page can deliver. Depends on the writer. I've been haunted by single lines in novels for years. > Surf Tumblr for a few hours and you'll understand how things are done these days. Kids don't just share quotes anymore, kids share GIF screen caps of their favorite moments in the movie or show they like. In David Brin's…

I've been haunted by moments in television as well, though.

The two final episodes of The Wire left me sleeplessly sitting in the garden, because of the events that transpired and the adrenaline involved.

The Body, one of the best Buffy episodes I can recall, left an impression on my young self that can still give me goosebumps when I think about it.

And the final episode of last season's Breaking Bad comes to mind, as well as the last episode so far.

I can't think of other occasions right away, but there are many more like it.

That said, on average books seem to have that effect more. Few things really topped how I felt after reading 'The Red Wedding' in A Song of Ice and Fire, for example. I think the main reason is that for television shows, the writers have to make many more concessions, because of producers, Nielsen ratings, and so on.

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