Netflix recently announced that they will be showing an original series of their own, "House of Cards." While I've noticed that Hulu Plus has their own TV series as well, I was surprised at Netflix's star-studded cast and ambitious expenditures. The program is a $50 million per season investment, and economists are saying it's pretty risky. But Netflix says they want to be seen as not only a distributor of other producer's shows, but to be a provider of "an experience that cannot be replicated by [our] competitors." The article also mentions that streaming others' content is becoming more expensive- yet another incentive for Netflix to start up some unique material. Do you think Netflix is making a smart move? The pricey new show will cost the company nearly $2.00 per share with the first two seasons alone. But I personally admire their bold move, and I respect how they are trying to up their game against other online streaming websites. I think Netflix is popular enough that a successful TV series will prove to help them more than disappoint.
http://money.cnn.com/2013/02/01/technology/innovation/netflix-house-of-cards/index.html?iid=HP_LN
http://money.cnn.com/2013/02/01/technology/innovation/netflix-house-of-cards/index.html?iid=HP_LN
2 comments:
Netflix is a really interesting company because they never seem to make much money and their stock has not performed very well despite the fact that they were the first and still one of the few firms that provides online TV and movie viewing. The stock has appreciated considerably since their announcement of this so it appears investors are very excited.
I like Netflix's move to create their own series. I think their reasoning is valid if the cost of steaming others' content is growing and they believe they have the ability to produce and distribute their own show. This could potentially be a great way to boost their profit and it also could be sustainable for many seasons to come if the show is a success. It will be interesting to see how Hulu's TV series does compared to Netflix.
Post a Comment