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I completely agree, Netflix is about to face the same problem that cable and satellite operators have faced for years, which is having every provider come at th
by seanalltogether 15y ago
I completely agree, Netflix is about to face the same problem that cable and satellite operators have faced for years, which is having every provider come at them demanding a fixed cut of subscriber revenue. If the top 6 ( http://en.wikipedia.org/wiki/Major_film_studio#Today.27s_Big_Six http://en.wikipedia.org/wiki/Major_film_studio#Today.27s_Big... ) had their way, they would each demand at least $5 per subscriber for access to their content. The next 5 years are going to see netflix increasingly operating the streaming division on a razor thin profit margin while jacking up prices.
- jasonwatkinspdx 15y agoI am not an expert on the industry, but from my armchair I think netflix will live or die by offering productions a better deal directly than the big studios. I expect some sort of anti-trust legal fight in an attempt to limit the lock in measures the big studios can put in the contracts they leverage.
- ChuckMcM 15y agoCertainly if I were Netflix I would be thinking along those lines. Clearly the move to lock in some original content was part of the game here. The 'learning' that has to happen for the big content folks is the difference between 'some money' and 'no money.' Hopefully Netflix will help educate them in that regard.