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"it could turn around and sell syndication rights to networks and overseas." Very unlikely since Netflix is planning to further expand abroad and the key in th

"it could turn around and sell syndication rights to networks and overseas." Very unlikely since Netflix is planning to further expand abroad and the key in their business is exclusivity... The math in this post is bogus since it's only based on incremental revenue brought by new subscribers. Getting more exclusive content does not only bring new subscribers, it also increases retention. I think the real news is not that netflix is producing its own content but that it's using state of the art analytics to design this new content predicting/modeling the type of scenario/actors/director that would best work for it's 30M+ subscribers. That's where the true disruption is. If somehow they are better at predicting what people like or don't like, they can design the right show for a given audience and maybe one day change the scenario in realtime depending on your mood a this very specific time...

amalag 14y ago
What about barter deals? Could Netflix 'trade' the show to AMC for the next season of The Walking Dead?
- edouard1234567 14y ago
  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?
  - amalag 14y ago
    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.
    - edouard1234567 14y ago
      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.
- sjg007 14y ago
  Yep.
qw 14y ago
Netflix is available in Norway, but House of Cards will also run on a cable channel in March
sp332 14y ago
Netflix doesn't own House of Cards. They paid most of the money to have it made but they only got an exclusive license.

amalag 14y ago

What about barter deals? Could Netflix 'trade' the show to AMC for the next season of The Walking Dead?

edouard1234567 14y ago
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?
- amalag 14y ago
  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.
  - edouard1234567 14y ago
    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.
sjg007 14y ago
Yep.

qw 14y ago

Netflix is available in Norway, but House of Cards will also run on a cable channel in March

sp332 14y ago

Netflix doesn't own House of Cards. They paid most of the money to have it made but they only got an exclusive license.