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Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

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Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#41

Post by georgekv »

tomrod wrote: post #32
georgekv wrote: post #31

Earlier quoted context omitted.

Stargate Universe & The Sarah Connor Chronicles come to mind for me. Both went under just as they were hitting their stride IMO.

I guess grad school really is a bubble. I had no idea they canceled SG:U. What's this Sarah Conner Chronicles I'm hearing about?

(http://www.imdb.com/title/tt0851851/)

FYI, it supposedly fell somewhere between the T2 & T3 movies in the timeline. Mostly good episodes with the story picking up (and frankly getting crazier in a good way) by the second season.

It's worth a watch if you can handle knowing you won't get all the answers due to its cancellation.

Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#42

Post by chopsueyar »

gigawatt wrote: post #30
stanleydrew wrote: post #9

Earlier quoted context omitted.

First of all, people don't often cancel once they are getting something. That's why those CD-of-the-month club things worked in the 90s, and book-of-the-month before them. But I'm not even sure that's important. I don't think the goal here is to directly make money on new subscriptions. This is a massive strategic move. It sends a signal to content providers that Netflix, if need be, can cut them out of the picture,…

I think it's more of a message to Amazon that just streaming a few thousand movies won't be enough to steal the market from them. Amazon is great at breaking into new areas, but I think they would have to think twice about moving into television production, given that it's so far outside their sphere.

That's what "they" said about Netflix.

Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#43

Post by chopsueyar »

meterplech wrote: post #21
mildweed wrote: post #17

This is not a part of their core competency. I don't see how this is a good move. If they had bought 10-20 shows, that's a different story...

I don't get it- you are right, this isn't part of their core competency. And, that's why they were smart to only buy one show, with two big names attached to it. They are reducing their risk and seeing if they can play in the content game. If yes, they will likely buy a few more shows and grow that competency.

When did streaming become part of Netflix's core competency?

Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#45

Post by warfangle »

kjksf wrote: post #22
r00fus wrote: post #5

Can someone explain to me how netflix is in a good position when all major broadband providers are looking at throttling and/or caps? When all the major ISPs are also selling their own video content, how can Netflix continue to compete?

Throttling (to the point that it degrades the quality of online video) or caps will mostly work against ISPs. Sure, netflix uses a lot of bandwidth, bo so does youtube, hulu, TechCrunch TV or Khan Academy. The online video is here and will only grow, so ISPs will have to get on with the program or face backlash from their users. If ISPs target netflix specifically, there will be PR disaster for them, possible anti-tr…

Will it really work against the ISPs? I have three choices in my area: 768kbps - 1mbps adsl through Verizon, 15mbps (nominally, typically 3mbps during peak hours) cable through Cablevision, or 3-6mbps high latency Clear 4G.

Not sure how the third option would hold up for streaming netflix - the first definitely would not.

So really, I don't have any choice about it, so I have no leverage. So capping it won't work against my ISP until they cap it below the other options.

Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#46

Post by jasonwocky »

mildweed wrote: post #17

This is not a part of their core competency. I don't see how this is a good move. If they had bought 10-20 shows, that's a different story...

Outright rejecting ideas because they're not part of your core competency is a growth-limiting position to take. Core competencies can get commoditized over time. If you don't skate to the next thing, you wither and die.

Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#47

Post by jerf »

There is an alternative interpretation of this play, which is that it is primarily a chess move. Demonstrating that they have the capacity to route around the content providers if necessary means that the content provider's negotiation position is thereby weakened. It may be the case that if they even so much as put out a credible series this will easily be worth $100 million to Netflix just in reduced content-provider-negotiation-position. Of course, the content providers will see that as well and react in their own ways (as always), but it's an interesting play.

Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#48

Post by true_religion »

ankeshk wrote: post #27
true_religion wrote: post #26

Earlier quoted context omitted.

Netflix is not trying to grow their subscription base. The "risk" to which he was referring to is the risk of the show failing completely by some metric (e.g. no one currently subscribed to netflix is watching it), and all that money being effectively flushed down the drain. It's the risk of going overbudget. Or the risk of actors and directors having a falling out. There's dozens of factors that go into making a sho…

Thanks for making some good points. You've listed down 3 risks. - Risk of no one watching. - Risk of going over budget. - Risk of actors or directors having a fall out. (Or something else occurring that makes episodes not coming out on time if at all.) And you make a good point that thats why Netflix is trying with 1 show and not 10. But aren't all these risks you listed further minimized by experimenting with a $10…

I think Netflix isn't trying to minimize the risk, but rather "test the waters" as it were to see what level of risk exists.

It's more of an experiment than a business strategy.

Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#49

Post by alexqgb »

ojbyrne wrote: post #34
alexqgb wrote: post #13

Earlier quoted context omitted.

By the same token, there's NO WAY a movie about nerds taking depositions for two hours would EVER go anywhere. Ever. ("Humm," says the studio, "is it shot in 3D?" "No, it's shot in brown.")

As a matter of fact, I thought of that movie as I was writing the comment. I could have added "however The Social Network might be the exception that proves the rule."

For what it's worth, they're both by David Fincher. I have to admit, I'd also be pretty skeptical if if were anyone else.

And you're right about the original. It is SO insanely good.

Re: Netflix Gets Into The Original Content Game, Buys Upcoming Show For $100m

#50

Post by gigawatt »

chopsueyar wrote: post #42
gigawatt wrote: post #30

Earlier quoted context omitted.

I think it's more of a message to Amazon that just streaming a few thousand movies won't be enough to steal the market from them. Amazon is great at breaking into new areas, but I think they would have to think twice about moving into television production, given that it's so far outside their sphere.

That's what "they" said about Netflix.

I think "so far outside their sphere" was poor word choice on my part. What I was trying to say was that, for Netflix whose sole business is delivering movies and tv shows to consumers, moving into TV production is not a stretch. For a company like amazon, who already does so many disparate things, to now add something so monolithic as TV production might stretch them in uncomfortable ways. I'm an enormous Amazon fan so I don't put anything past them, but this is kind of a double-dog dare on Netflix's part, in my opinion.
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