07-08-2012, 12:46 PM
Starz tried to force a premium model on Netflix, and when Netflix refused, that's when Starz bailed on them.
I prefer the Netflix model to the one from, say, Hulu. Simplicity works best.
I agree, it seems to me that withholding shows/movies from streaming services would bring in more money (via DVD sales or rentals), but part of it may be a guaranteed revenue stream. It's like magazine subscriptions...they may generate less money (especially when a yearlong subscription is $10 and a single issue on the news stand costs $4.99), but predicability is very important to a public company.
I seem to remember the deal Netflix cut with AMC for Mad Men was something like $1m per episode, which is pretty high. I think they only do that for "tentpole" shows/movies, though. Mostly it's a case of buying rights to a bucket of stuff (good and bad) for a fixed price. God knows Netflix has plenty of crap mixed in there...
I prefer the Netflix model to the one from, say, Hulu. Simplicity works best.
I agree, it seems to me that withholding shows/movies from streaming services would bring in more money (via DVD sales or rentals), but part of it may be a guaranteed revenue stream. It's like magazine subscriptions...they may generate less money (especially when a yearlong subscription is $10 and a single issue on the news stand costs $4.99), but predicability is very important to a public company.
I seem to remember the deal Netflix cut with AMC for Mad Men was something like $1m per episode, which is pretty high. I think they only do that for "tentpole" shows/movies, though. Mostly it's a case of buying rights to a bucket of stuff (good and bad) for a fixed price. God knows Netflix has plenty of crap mixed in there...
Ex SWG, L2, CoH, Wow, and War
Currently PvPing in the stock market
Currently PvPing in the stock market