Around the Net

Is Netflix The Next HBO?

In what would be a company first, Netflix is reportedly angling to get into original programming. Calling it "the biggest gamble in [Netflix's] 14-year history," Deadline.com's Nellie Andreeva reports that the content distributor has outbid several top cable networks, including HBO and AMC, for a new drama series House of Cards starring Kevin Spacey.

The deal is estimated to be worth more than $100 million, and, according to Adreeva, "could change the way people consume TV shows." Business Insider describes the move as "one way for Netflix to become more of a ‘must have' service and not just a ‘nice to have.'" "Several recent reports have glorified Netflix as a new power player in the film industry, and now, the video streaming giant may be living up to that name more than ever," writes DailyTech.

advertisement

advertisement

"Clearly, the protracted talks that Netflix has had over the years with Hollywood studios has taught the company that its better to own your own programs rather than just distribute them for someone else," explains VentureBeat. "The move could be an escape route for Netflix, which seems doomed to pay ever-rising fees to content owners."

Like Liberty Media chairman John Malone before her, Adreeva likens Netfix to HBO, which established itself as premium cable movie channel before hitting it big with original series.

Still, "getting into the business of betting on television shows is also a highly risky one for Netflix, a company that has become successful in part by focusing on its areas of expertise, technology and the Internet," writes The Wall Street Journal. As The Journal points out, Netflix already failed once in the realm of original content with its Red Envelope Entertainment uni

Read the whole story at Deadline.com »

Next story loading loading..