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Netflix is trying to become a "high quality" content provider but I believe that the real value most customers are seeking is the vast amount of old (not necess

Netflix is trying to become a "high quality" content provider but I believe that the real value most customers are seeking is the vast amount of old (not necessarily low quality) content. Like you, they surf "reruns" in high quantity. The so called Netflix binge. But the problem is they are killing the source of that content. Those cheap old shows were produced by networks. If netflix kills TV nobody is going to license them content. But I'm not sure that Netflix's subscriber base is signed up for Netflix becoming another HBO. New content is expensive. I also think the binge viewing of their original content is a bad idea. If I watch House of Cards in 2 days, it's out of my mind the other 51 weeks of the year. Something like True Detective is one for two whole months and people talk about it in real life and on social networks.

dragonwriter 11y ago
> But the problem is they are killing the source of that content. Those cheap old shows were produced by networks. If netflix kills TV nobody is going to license them content. Having been with Netflix since before it even supported streaming, as well as through the whole streaming period, the catalog has lost a lot of high-quality back catalog (and is less successful at acquiring new third-party content), in part because content owners are trying to monetize their content through other channels, including their own streaming services. Netflix could live off third-party back catalog content as long as it was essentially alone in the streaming space -- which only lasted as long as that mechanism was a relatively unproven business model. Note that the exact same thing happened to HBO, which, before it started making original content, was essentially the cable-era version of what Netflix was before it started making original content. But once there were other cable movie channels, HBO needed unique content that it didn't have to get into price wars with other channels -- since these bidding wars meant that the profit was squeezed out of HBO (or the competing channel) to the content owner. > But I'm not sure that Netflix's subscriber base is signed up for Netflix becoming another HBO. Short of price-managed mandatory streaming license system, Netflix becoming another HBO was guaranteed if Netflix was successful in demonstrating that streaming was a viable way of delivering the kind of content it was carrying. Content owners were never going to fail to maximize their profits.
- rhino369 11y ago
  I agree, but my main worry is that Netflix isn't currently a premium product. It's a value product. They get subscribers based on the huge amount of content. They'll have to transition into HBO. But that isn't easy. You are right HBO transitioned from third party content to original, but HBO always hit the same market segment. HBO was always a premium entertainment service. Netflix has already suffered customer revolts on relatively minor price increases. Will the Netflix subscriber base pay for a netflix that mostly does original content? I'm not so sure that they will.

dragonwriter 11y ago

> But the problem is they are killing the source of that content. Those cheap old shows were produced by networks. If netflix kills TV nobody is going to license them content. Having been with Netflix since before it even supported streaming, as well as through the whole streaming period, the catalog has lost a lot of high-quality back catalog (and is less successful at acquiring new third-party content), in part because content owners are trying to monetize their content through other channels, including their own streaming services. Netflix could live off third-party back catalog content as long as it was essentially alone in the streaming space -- which only lasted as long as that mechanism was a relatively unproven business model. Note that the exact same thing happened to HBO, which, before it started making original content, was essentially the cable-era version of what Netflix was before it started making original content. But once there were other cable movie channels, HBO needed unique content that it didn't have to get into price wars with other channels -- since these bidding wars meant that the profit was squeezed out of HBO (or the competing channel) to the content owner. > But I'm not sure that Netflix's subscriber base is signed up for Netflix becoming another HBO. Short of price-managed mandatory streaming license system, Netflix becoming another HBO was guaranteed if Netflix was successful in demonstrating that streaming was a viable way of delivering the kind of content it was carrying. Content owners were never going to fail to maximize their profits.

rhino369 11y ago
I agree, but my main worry is that Netflix isn't currently a premium product. It's a value product. They get subscribers based on the huge amount of content. They'll have to transition into HBO. But that isn't easy. You are right HBO transitioned from third party content to original, but HBO always hit the same market segment. HBO was always a premium entertainment service. Netflix has already suffered customer revolts on relatively minor price increases. Will the Netflix subscriber base pay for a netflix that mostly does original content? I'm not so sure that they will.