Netflix offers TV stations $100k per Episode...

[MaDalton]

Netflix is making an aggressive play for in-season episodes of hit TV shows to expand its Web streaming service.

The company is in talks with studios about gaining access to current episodes of primetime shows and is willing to pay between $70,000 and $100,000 per episode, according to a person familiar with the matter. Netflix had no comment.

Netflix CEO Reed Hastings has made no secret of his desire to move beyond movie rentals and beef up TV offerings. While the company has added a number of shows, such as "Nip/Tuck," "Veronica Mars" and "The Family Guy, they are mostly episodes from previous seasons.

Just last month, Netflix won a groundbreaking deal with NBC Universal to stream comedy show "Saturday Night Live" the day after it airs on the broadcast network.

With Netflix ready to put its money where its mouth is -- and a host of rivals such as Apple and Google's YouTube also in the hunt -- a war is breaking out over who controls streaming rights to current episodes.

http://www.nypost.com/p/news/busines...mH8odXiLSickCN


i wish they would battle like this over adult content...

[BIGTYMER]

Originally Posted by MaDalton

i wish they would battle like this over adult content...

Me too!

[fatfoo]

$100k per Episode - wow, that's quite expensive.

[PornMD]

I can understand why they're doing that. I have a friend who as it is doesn't watch much TV...mostly is fine with movies and older shows or older seasons of shows, and he decided once he moved into his new place that to cut down on costs, he wouldn't get cable at all and simply got Netflix. Ever since he mentioned that, I've been considering doing that, but I have maybe 4 or 5 new shows I watch throughout the year and it'd suck having to wait til they're old enough for Netflix to MAYBE have them. If they got newer shows as they came out, I doubt I'd be the only one to consider saying screw it to cable and going with only Netflix.

[Kingfish]

Netflix and Redbox killed the video store

[Fletch XXX]

good stuff

[WiredGuy]

Are there still advertisements displayed or is the content ad-free?
WG

[kane]

Originally Posted by PornMD

I can understand why they're doing that. I have a friend who as it is doesn't watch much TV...mostly is fine with movies and older shows or older seasons of shows, and he decided once he moved into his new place that to cut down on costs, he wouldn't get cable at all and simply got Netflix. Ever since he mentioned that, I've been considering doing that, but I have maybe 4 or 5 new shows I watch throughout the year and it'd suck having to wait til they're old enough for Netflix to MAYBE have them. If they got newer shows as they came out, I doubt I'd be the only one to consider saying screw it to cable and going with only Netflix.

In a way I am very close to this. I don't have a lot of time for TV, but there are a few shows I watch so I DVR them. When I do have some TV time I often watch a movie that I either have on DVD from Netflix or that I stream. If they had the few shows I watch on Netflix the only thing I would even need a TV for is sports and you can pay to watch most every game online if you want so buying a hockey, baseball and football online subscription would be far cheaper than the cost of cable.

[mynameisjim]

I don't know what current syndication deals are for reruns, but that Netflix offer actually seems low for first run shows.

[gideongallery]

Originally Posted by fatfoo

$100k per Episode - wow, that's quite expensive.

traditional liciencing fees are aproximately 4 commercial spots
for first run rights

Originally Posted by mynameisjim

I don't know what current syndication deals are for reruns, but that Netflix offer actually seems low for first run shows.

it is

[kane]

Originally Posted by mynameisjim

I don't know what current syndication deals are for reruns, but that Netflix offer actually seems low for first run shows.

I'm just guessing, but I think they want the shows right away. For example if a new episode of a show airs on Monday, Netflix wants to have it for streaming on Tuesday so it won't be quiet the same as syndication. Plus, Netflix won't be selling advertising on it.

I see it as a nice way for people to get some extra money from their show. People are just going to download a commercial free version of it anyway so they might as well sell it if they can.

[Nasty]

Originally Posted by Kingfish

Netflix and Redbox killed the video store

I heard Redbox killed video stores by taking the new releases biz away from them

[gideongallery]

Originally Posted by MaDalton

http://www.nypost.com/p/news/busines...mH8odXiLSickCN


i wish they would battle like this over adult content...

you do relaze the like 1/4 the going rate for first run right, so they basically are

[Ecksent]

Originally Posted by WiredGuy

Are there still advertisements displayed or is the content ad-free?
WG

We have it and there are no ads at all. The Canadian version is not nearly as good as it is in the States. I'm assuming they are still trying to secure the rights to more shows up here.

[mynameisjim]

Originally Posted by kane

I'm just guessing, but I think they want the shows right away. For example if a new episode of a show airs on Monday, Netflix wants to have it for streaming on Tuesday so it won't be quiet the same as syndication. Plus, Netflix won't be selling advertising on it.

I see it as a nice way for people to get some extra money from their show. People are just going to download a commercial free version of it anyway so they might as well sell it if they can.

If it's for a limited time, it might be good deal. If they can archive it then the networks would be silly to accept that offer.

Overall though, I mentioned this in another thread that most TVs now have apps and networks are starting to make their own apps. So I think they will go that route so they can keep the advertising.

I actually see Netflix being squeezed out in the long run as a worthless middleman. Producers will be able to stream directly to the consumer with no need for Netflix. I think that's why their main focus is strategic deals like this. They see how quickly they can be locked out with a few technology shifts.

[kane]

Originally Posted by mynameisjim

If it's for a limited time, it might be good deal. If they can archive it then the networks would be silly to accept that offer.

Overall though, I mentioned this in another thread that most TVs now have apps and networks are starting to make their own apps. So I think they will go that route so they can keep the advertising.

I actually see Netflix being squeezed out in the long run as a worthless middleman. Producers will be able to stream directly to the consumer with no need for Netflix. I think that's why their main focus is strategic deals like this. They see how quickly they can be locked out with a few technology shifts.

I could see how years down the line studios could easily just stream directly to customers. Right now many of them let you watch full episodes right on their website and they usually let you do this up until the end of the season or until they are ready to release it on DVD. They would just need to make that same content available for streaming. The issue could be ease of use. Netflix has everything centrally located so you just need one account and you get all the content. The networks would need to have something similar where you could get all your tv shows from one easy to use interface. That could be a problem that is easily solved with an app of some sorts.

The potential problem they will run into is the level of commercials. Right now if I watch an hour long show on TV it has about 15 minutes of commercials. If I watch it on their website it will have about 5 minutes or less of commercials. If they are going to stream the shows will they be able to get enough revenue from commercials to pay for the cost of doing this and still make a profit? If they start overpopulating the shows with ads people will just download them commercial free from torrent sites. So, I feel, doing it successfully will be a bit of a challenge for the networks.

[cherrylula]

Originally Posted by PornMD

I can understand why they're doing that. I have a friend who as it is doesn't watch much TV...mostly is fine with movies and older shows or older seasons of shows, and he decided once he moved into his new place that to cut down on costs, he wouldn't get cable at all and simply got Netflix. Ever since he mentioned that, I've been considering doing that, but I have maybe 4 or 5 new shows I watch throughout the year and it'd suck having to wait til they're old enough for Netflix to MAYBE have them. If they got newer shows as they came out, I doubt I'd be the only one to consider saying screw it to cable and going with only Netflix.

That is similar to what we do. We have basic cable (sometimes I wonder why since we don't watch it) and netflix.

No commercials, and my one year old gets her little kid shows with no ads (I even skip the stupid previews on the discs lol).

[woj]

Originally Posted by PornMD

I can understand why they're doing that. I have a friend who as it is doesn't watch much TV...mostly is fine with movies and older shows or older seasons of shows, and he decided once he moved into his new place that to cut down on costs, he wouldn't get cable at all and simply got Netflix. Ever since he mentioned that, I've been considering doing that, but I have maybe 4 or 5 new shows I watch throughout the year and it'd suck having to wait til they're old enough for Netflix to MAYBE have them. If they got newer shows as they came out, I doubt I'd be the only one to consider saying screw it to cable and going with only Netflix.

I've been doing that for years, after a while you don't miss it at all...

[Mutt]

the networks pay a fortune for shows whether they own and produce the shows themselves or buy them from a producer/studio.

how much ratings/ad revenue they'd lose if they allowed Netflix to stream a show would determine the ballpark figure a network would consider selling for. I think on a hit show, $100K is chicken feed.

things are changing so rapidly - networks and cable channels will be doing the same as Netflix themselves. programming will be like soft drinks - you can buy them from a thousand different places.

[jigg]

Originally Posted by WiredGuy

Are there still advertisements displayed or is the content ad-free?
WG

all the current streaming movies and tv shows are last season, and they are all commercial free. Who knows if they'll put ads but if they don't it will kill Hulu which is loaded with advertising