Commentary

Netflix Should Mull Future Without Upsetting Too Much Of Big Media's Applecart

Netflix is planning an event about the “future of TV” that will feature partners, “friends” and other folks from networks, movie studios and other related companies.

That’s good news. Futuristic renderings of TV’s landscape are needed.  Since the event will be closed to press, you can expect plenty of speculation about the comings and goings of the business.

Interestingly, Netflix plans to invite “competitors” -- such as HBO executives -- to contribute their insights.

Some speculate that Netflix will release key viewership data on its programming -- something the networks and studios who make deals with Netflix don’t normally get briefed on. That’s of keen interest, since many media analysts have speculated that SVOD services are deepening traditional TV erosion.  Nielsen, meanwhile, is readying to offer viewing estimates for Netflix and other streaming subscription video on demand services (SVOD) like Amazon and Hulu. Netflix does well to keep its numbers on the QT. In the early days of cable, HBO and MTV took somewhat similar stances.

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Obviously a one-day event can  analyze the state of TV  only so much. But deeper conversation is necessary for both traditional and new players to project what moves they should make in the short term.

While digital TV and video has been upsetting the big media applecart, traditional platforms still post big revenues.  One question could be how streaming video services can gain from those business models.

Companies like Netflix must closely eye their business agreements with TV stations, pay TV providers and movie theater owners.  

One thing Netflix should want to gain from its upcoming meeting and related events: how to accelerate its need for content from big media creators while not disturbing too much of the latter’s current business relationships and reliable revenue.

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