The Netflix Content Engine
In the world of online media, no company is a bigger success story than Netflix. And while we focus here more on the delivery side of the Netflix business, it’s impossible to ignore the content side of the story. As Netflix grows stronger, it increases its standing as both a friend and foe to content studios. On the one hand, studios like having another buyer for their libraries, and particularly for their archived content. On the other hand, they are not thrilled with how well Netflix has negotiated some of its key licensing deals, particularly where those deals threaten to devalue their own content. One industry executive has been quoted as saying that Netflix would have to raise its monthly subscriber fees to $20 in order to get any meaningful portion of HBO’s premium catalog. Meanwhile, a representative from Starz says it plans to up the asking for its content once the company’s existing contract with Netflix comes to an end later this year.
All of this posturing only counts as evidence toward the position of power Netflix has attained. It needs to remain nimble to continue building on its success, but we can assume the company has a few tricks up its sleeve yet. Will Richmond of VideoNuze will interview Netflix’s chief content officer Ted Sarandos at the NATPE Market conference next week. Perhaps we’ll get a peek at a few of the company’s strategies for further content acquisition then.
