Netflix Offering $100k Per Episode for Current TV

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Netflix Offering $100k Per Episode for Current TV

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Netflix is offering studios up to $100K per episode for permission to stream current episodes of television series, much to the dismay of the networks that now air them.

Netflix is poised to deliver 300 million streams in the upcoming year, all of movies and seasons-past television. CEO Reed Hastings wants to strengthen the company's foothold in television, and has started to talk directly with studios about getting its hands on episodes of currently running seasons of primetime television series. Netflix is reportedly offering studios between $70,000 and $100,000 per episode to gain access to current programming.

That Netflix is going directly to the studios, rather than broadcast networks, means trouble for those networks. A third-party service streaming current television could be a sizable threat in a rapidly evolving entertainment industry. This has produced a debate over who owns streaming rights. The New York Post supplies both sides of the debate, noting "the studios that supply the networks with shows argue they own the streaming rights to in-season shows." The Post continues "but the broadcast networks that make a profit from repeats -- and stand to lose audiences, ad dollars and syndication revenue if viewers can see those same episodes on Netflix -- argue they control the rights."

Netflix has recently announced a streaming-only service at $7.99 per month. This puts them at the same price point as Hulu Plus, which streams current episodes of selected series. Hulu is able to stream this content because it is actually jointly owned by the NBC, ABC, and Fox television networks. While Netflix does not currently have access to this timely content, it is the only streaming service of the two, for the moment, that can be viewed on a gaming device, as it allows viewers to stream television on a PlayStation 3, Xbox, or Wii.

All of this only applies to television viewers in the United States for the time being, but one of the speculative reasons for introducing the streaming-only Netflix option was that shipping discs internationally was difficult. Following that logic, one hopes that Netflix will soon bring their streaming services to countries outside the US, as they did in Canada earlier this year.

Source: The New York Post, via The Hollywood Reporter

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As most, I'm all for this. Not only will it be a great bargain if it goes through, it will add even more competition to the mix, and that means the consumer wins in the end.

Yes, do it. The consumer will win the end because:

- They can set their own time.
- No friggin' ads.
- Comfort and streaming capability right away.

Let Netflix succeed even when I cannot use it from Europe!

My children will never experience a world where some program director controlled your schedule. There is will be no "prime time" anymore and this is a wonderful thing.

The whole entire network system is slowly but inevitably crumbling. Eventually there will be no middlemen between consumers and producers.

Great Netflix just gain more good rep for going straight to the studios and bypassing the networks.

rembrandtqeinstein:
My children will never experience a world where some program director controlled your schedule. There is will be no "prime time" anymore and this is a wonderful thing.

The whole entire network system is slowly but inevitably crumbling. Eventually there will be no middlemen between consumers and producers.

When can we get rid of publishers?

Well, let's look at this:

With cable TV you can pay $30 a month for basic cable and still get commercials with your favorite show.

With Netflix you can pay $8 a month for unlimited streaming and get your favorite show without commercials.

Which would most people choose?

Every since I first found out (decades ago) that networks are in the business of selling ad space, not tv shows I have had a bitter taste for tv.

This is a brilliant move. I don't have cable so I've been using Amazon's video-on-demand. If it were on Netflix for free, believe me would I be plugging the crap out of Netflix to all my friends.

Elizabeth Grunewald:

Netflix has recently announced a streaming-only service at $7.99 per month. This puts them at the same price point as Hulu Plus, which streams current episodes of selected series. Hulu is able to stream this content because it is actually jointly owned by the NBC, ABC, and Fox television networks. While Netflix does not currently have access to this timely content, it is the only streaming service of the two, for the moment, that can be viewed on a gaming device, as it allows viewers to stream television on a PlayStation 3, Xbox, or Wii.

This is actually false. I've been watching Hulu Plus on my PS3 since August.

This might actually get me to subscribe to netflicks, especially if they get Dexter.

I cannot justify the cost of basic cable. Premium cable? Don't even get me started.

Netflix is simply amazing. If they added streaming for current shows, I'd be worried if I was a broadcast network, too. The advertising is getting prohibitive. When a full quarter or more of an hour block is devoted simply to advertising, it becomes a turn-off (literally) for me.

I haven't had television for two years, now. Why would I?
(Okay, I'll be honest. I really miss Jeopardy. That's it.)

Please get current stuff netflix! I don't always get to watch new TV shows (like my precious Mythbusters) and I want to see them! Please let this happen.

teutonicman:
This might actually get me to subscribe to netflicks, especially if they get Dexter.

They have some seasons of Dexter on Netflix now. Netflix got me hooked on Dexter.

Would be great if Netflix could decide if they are going to be available here or not, seriously, missing out on shit load of stuff from XBL, indy games, netflix and other stuff, to late to remember now :p

Lets see...
100k per episode...4-8 episodes per month per show...(assuming that each show airs at least once per week, like, say, Burn Notice or CSI)

So, assuming each user watches these shows, Netflix will need about 50,000 to 100,000 subscribers per show to break even in subscription fees alone.

Hmm. Not too bad actually. For Netflix.

I wonder then how shows which cost 1,000,000$ or more to produce will work. The Producers aren't going to let that go to a stream based because the advertisements pay the salaries of the actors in question. Martin Sheen was earning a million dollars an episode by himself for "The West Wing". How could anyone afford to create TV for 100,000$ an episode? Will the show get a royalty from Netflix per viewing?

Heroes was doing this last season on Netflix. A day or too after the newest episode aired, it would show up on Netflix.

Rocketboy13:
I wonder then how shows which cost 1,000,000$ or more to produce will work. The Producers aren't going to let that go to a stream based because the advertisements pay the salaries of the actors in question. Martin Sheen was earning a million dollars an episode by himself for "The West Wing". How could anyone afford to create TV for 100,000$ an episode? Will the show get a royalty from Netflix per viewing?

Netflix will be additional income. They will still have the advertisers (for now).

I fucking love netflix.

About 2 weeks ago, we canceled our cable and got netflix. Best decision ever.

We watch so many movies. And they even have t.v. too. Not currant episodes but still.
Watching then instantly right on the ps3.

This would make netflix even more better than it is.

Straying Bullet:

- No friggin' ads.

I doubt it. Right now there is no ads. But if they do get current episodes, then I guess ads would get on netflix. Either way, netflix will get ads soon if it keeps growing.
It is kind of inevitable.

Maybe when this comes around I'll start watching TV again.

Is it weird that I'll pay to watch something that I can get free only so I can watch it at my own pace? It's cheaper than a DVD at least.

Stoic raptor:

Straying Bullet:

- No friggin' ads.

I doubt it. Right now there is no ads. But if they do get current episodes, then I guess ads would get on netflix. Either way, netflix will get ads soon if it keeps growing.
It is kind of inevitable.

Is this just a guess?

I hope they can do it, if only to beef up their library. The Canadian Netflix mostly sucks.

Stoic raptor:
if they do get current episodes, then I guess ads would get on netflix. Either way, netflix will get ads soon if it keeps growing.
It is kind of inevitable.

I don't think (hope?) so. With Netflix, you pay directly for the service, so there is no justification for advertisement. It's different for TV, since you don't pay the stations directly, so they get their money from advertisers.

Streaming from netflix cuts out the middle man, and there for ads are not needed to support the model.

In essence you are getting TV for a small increase in cost, with your internet connection (which you have and pay for already) carrying a bulk of the weight.

The only fear I have is that I see the networks try to salvage their business with the Hulu model and make their shows exclusive to Hulu to make it compete with Netflix...

3rd party studios will benefit because they'll have two services buying their shows (potentially).

The only real dark path this could lead is the networks buddying up with the ISPs to throttle streaming traffic in the event that the courts don't back net neutrality.

With any luck, this will pan out the same way that traditional phone service will: Pipe it through your internet for a 10th of the cost to the consumer.

Netflix is becoming an entertainment superpower and somehow it seems to be good for the consumer. I want more than the first two seasons of Dexter on there!

About damn time. Networks can go die in a fire for all I care, I haven't had cable for years; I try to stay away from advertising as much as possible and my mind is happier for it.

Jkudo:

rembrandtqeinstein:
My children will never experience a world where some program director controlled your schedule. There is will be no "prime time" anymore and this is a wonderful thing.

The whole entire network system is slowly but inevitably crumbling. Eventually there will be no middlemen between consumers and producers.

When can we get rid of publishers?

Not quite yet but the process has already started. All creative content is moving in this direction, music, books, movies, television, video games.

Look at games the last few years. All the real innovation is happening without publishers, Minecraft, World of Goo, Braid, lots of iPhone and XBLA games. Digital distribution like Steam might as well be free compared to getting retail shelf space.

A couple of hacked Kinects and you have a motion capture studio that would cost tens of thousands of dollars just a couple of years earlier.

Maybe there will be less eye candy but Minecraft sure as hell kept my attention WAY longer than Mass Effect 2. But it will take a while, middlemen will fight tooth and nail against being cut out.

If this means that shows like Firefly can succeed without network meddling then GOGOGO netflix.

rembrandtqeinstein:
My children will never experience a world where some program director controlled your schedule. There is will be no "prime time" anymore and this is a wonderful thing.

The whole entire network system is slowly but inevitably crumbling. Eventually there will be no middlemen between consumers and producers.

I think netflix counts as a middleman.

This wont be that successful paying $100k per episode when in the top rated shows actors are receiving $300k-$600k per episode. The production companies still need the networks to do the promotion and the commissioning of new shows. Netfix is long way off being able to spend the kind of money that requires and if they did their cost base would shoot up to about the same as the networks. This means that you would end paying either, about the same price as cable channel or face adverts. At the moment Netfix are just poaching money based on the investments made by the networks. Its not a bad business model, you keep your costs low and let the other guy pay for product development but it doesn't mean that they are going to replace the networks any time soon.

rembrandtqeinstein:

Jkudo:

rembrandtqeinstein:
My children will never experience a world where some program director controlled your schedule. There is will be no "prime time" anymore and this is a wonderful thing.

The whole entire network system is slowly but inevitably crumbling. Eventually there will be no middlemen between consumers and producers.

When can we get rid of publishers?

Not quite yet but the process has already started. All creative content is moving in this direction, music, books, movies, television, video games.

Look at games the last few years. All the real innovation is happening without publishers, Minecraft, World of Goo, Braid, lots of iPhone and XBLA games. Digital distribution like Steam might as well be free compared to getting retail shelf space.

A couple of hacked Kinects and you have a motion capture studio that would cost tens of thousands of dollars just a couple of years earlier.

Maybe there will be less eye candy but Minecraft sure as hell kept my attention WAY longer than Mass Effect 2. But it will take a while, middlemen will fight tooth and nail against being cut out.

But then you have to realise that Black Ops sold over 7 times as many copies on it's first day, as Minecraft has in its lifetime. Add on the fact that Black Ops is a hell of a lot expensive, and you see that the money is still at publishers. And money rules the market.

Stoic raptor:

Straying Bullet:

- No friggin' ads.

I doubt it. Right now there is no ads. But if they do get current episodes, then I guess ads would get on netflix. Either way, netflix will get ads soon if it keeps growing.
It is kind of inevitable.

A bit hard to swallow the 'inevitable' part because you PAY for the subscription to Netflix. Paying for a service usually means no ads. So here is hoping they don't implent it.

And Hulu still isn't available in Canada. Fuck you, network TV. I don't miss cable at all. Why in the name of high holy fuck would I pay upwards of $50 a month for shows I don't care about that I have to watch when you say I do? It's two thousand fucking ten. Get with it, or get the fuck out of my living room.

Not satisfied with knocking out rental services such as Blockbuster, Netflix now has their eyes on television networks themselves. This is going to be very interesting.

Garak73:

Every since I first found out (decades ago) that networks are in the business of selling ad space, not tv shows I have had a bitter taste for tv.

doesnt that ad space pay for the show... i think

Straying Bullet:

Stoic raptor:

Straying Bullet:

- No friggin' ads.

I doubt it. Right now there is no ads. But if they do get current episodes, then I guess ads would get on netflix. Either way, netflix will get ads soon if it keeps growing.
It is kind of inevitable.

A bit hard to swallow the 'inevitable' part because you PAY for the subscription to Netflix. Paying for a service usually means no ads. So here is hoping they don't implent it.

Wait...doesn't cable TV have ads? Don't you pay for that?

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