2 ms·
The article directly attributes the ability to scale content to not being locked down by time slots. A conventional network has only a few primetime time slots
by solatic 8y ago
The article directly attributes the ability to scale content to not being locked down by time slots. A conventional network has only a few primetime time slots per weekday evening, and that fundamentally limits the number of new shows (and renewals of old shows) that an individual network can produce. Netflix isn't limited by time slots; if conventional network A shows a sci-fi show at 8 PM on Monday night and conventional network B shows a different sci-fi show at 8 PM on Monday night, they compete with each other for viewers. If Netflix releases both shows at the same time, viewers will stream one show and then stream the other show after they finish the first - not a competition, but a value-add. Neither A nor B can show both a drama and an action show at the same time on the same network, they would have to collude and share profits. Netflix can release both simultaneously to different audiences.
Netflix's streaming model is strictly better than the broadcast model. It has little to do with the revenue sourcing.