Streaming Fragmentation Netflix
The cluster discusses how content studios are withdrawing licensed material from Netflix to launch their own exclusive streaming services, leading to market fragmentation, higher costs, and challenges for aggregator models like Netflix.
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It's a problem of business model to me.Streaming companies are starting to look like cable companies, because the "system" incentivizes exclusivity of content.When netflix started, they didn't make their own content, but instead licensed it. They offered fast and reliable services, and the content was tangential.But as soon as content producers (and other media companies including cable companies) saw how profitable netflix was, they either raised their content licen
While obviously Netflix has a lot to loose here, it don’t think it’s “their fault” for dumping AAA content. The reality is that every content producer on the planet knows they’ll make more money selling their own subscription platform. Netflix can’t continue to get Marvel movies, for example, now that Disney has pulled the plug. There’s not any amount of cash Netflix could afford to pay which would be enough for The Mouse to take content off of Disney+.This is the same for every studio out th
> Maybe if they went with there own premium streaming serviceIf you don't own the content, you get squeezed. Hulu, Spotify all of these guys get nickle-dimed into oblivion.Netflix understood this deeply creating one of the biggest, successful pivots in startup-dom
I cancelled my subscription in 2010: the streaming catalog was pitiful and mailing DVDs to-and-fro was just too inconvenient.It's worse than a chicken-egg problem because it's a triple-ended market: users, content sellers and content owners.Netflix, YouTube, Hulu, Amazon, TPB, TV, theaters ain't the final word in content monetization (or lack thereof) and distribution (or also lacking). If say Netflix were to split up their business into b2c subscriptions and b2b2c fulfillme
When Netflix first started, they were able to buy the streaming rights to old movies and TV shows for cheap, because executives thought they weren't worth anything. Now those contracts are expiring, and the studios want to jack up the rates or start their own service.Netflix is also getting squeezed by ISPs like Comcast, who want to charge them for the right to deliver video to Comcast's customers who already paid for their bandwidth.So Netflix' only way to survive is to de
I suspect that isn't netflix's decision to make. Everyone is trying to get into the streaming market these days, and the only way to capture subscribers is to offer up content that other services don't have, which means they're willing to burn huge piles of investor money to lock up exclusive rights.Yes, it defeats the whole point of streaming subscriptions. Yes, it'll drive a large segment of the subscriber base back to piracy. But it's a classic prisoner's
it seems like a bad choice for a content producer to let netflix stream their material.as a content provider, you have an edge in that your library is larger than theirs. by allowing them to stream your content, you make profit today, but subsidize a competitor building their library.and in the transaction, you loose the most valuable component of the sale, the customer data. now your competitor has viewing habits of your customers, to which you are now blind.10 years ago, it was real
It won't work with Netflix's model. The flat rate pay x and watch as much as you want doesn't work for the producers, the prices they can negotiate for their content are always capped based on the fixed subscription at netflix. Given that it's much more appealing for them to launch their own service and get 100% of a smaller customer base which they can potentially grow in the future.
As I understand it, most of the deals between Netflix and the studios are revenue sharing deals. So the studios have a vested interest in increasing whatever metrics they are basing the revenue sharing on. They could see streaming availability as hurting the DVDs 'sales.' Though this would apply industry-wide anyways, so I don't know if this would really put the streaming side of things in a better negotiation position.
No, it's profitable.The problem is the schism of media. If I already have 3 streaming service providers but the greatest show on earth is only watchable on "kufuzu neon plus", I'm just not going to watch it.Consumers care more about convenience. What they should have done is to integrate into Netflix, stop worrying about exclusive premiere content, and instead focus on outcompeting the others in a common marketplace.Instead they all conspired to fall on netflix like