Commentary

New Technology Breeds Need For Moldy Content

There's a remarkable paradox that just continues to accelerate in the content distribution business: the new is creating huge demand for the old. As apps and tablets and Androids continue to offer new opportunities for viewing at warp speed, "The Andy Griffith Show" and "Family Ties" may have more value now than ever.

The two moldy shows are among the select group -- along with "Cheers," "Twin Peaks" and a few others - attractive enough to prompt Netflix to pay CBS a reported $200 million for streaming rights. Netflix, of course, needs the content to satisfy consumers enamored with their iPads and Roku boxes, a group apparently willing to settle for shows they've seen so many times before.

(CBS has another similar deal with Amazon Prime that includes plenty from yesteryear.)

So, while content is king at media companies, a case could be made technology is royalty for many consumers -- at least as they grow accustomed to their new toys.

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An analyst report this week reinforced the value of the past to some of the world's foremost media companies. Now that Netflix and Starz have apparently broken off negotiations on renewing a deal for distribution of Sony and Disney films, Barclays Capital suggests Netflix will increasingly rely on TV shows.

Warner Bros. is in prime position to capture some of the hundreds of millions of dollars Netflix could have been paying Starz -- and not for content anywhere near as new as "Two and a Half Men," but more akin to "Wonder Woman."

The Time Warner studio has 50,000 episodes in its library culled from decades of production and "no one is media has a larger TV library," according to Barclays. Warner Bros. has a limited deal with Netflix involving "Nip/Tuck" and some other series that couldn't make it to syndication, but it could start to open the floodgates.

Warner Bros. could "potentially realize a windfall," Barclays wrote. And that's with non-exclusive deals à la CBS, which can sell "Cheers" to all comers and still place it on cable.

"Droids" are a content creator's best friend for now.

1 comment about "New Technology Breeds Need For Moldy Content".
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  1. Jay Oconner from World Colours Network Inc., September 9, 2011 at 6:01 p.m.

    Is Netflix out of its Mind?

    It seems that Netflix is considering dropping $200 Million Dollars for Moldy old Television shows that we have seen for 20 years or more. It reminds me of the deal that Bud Paxson Cut for Touched by an Angel. Anyone remember this.

    Pax Net announced its flagship show would be 'Touched by an Angel,' for which it paid a reported $950,000 per episode. Scheduled to debut August 31, 1998, the network's other prime-time shows included 'Promised Land'; 'Dr. Quinn, Medicine Woman'; 'Dave's World'; and three original shows, including a late night talk show. Infomercials were expected to occupy morning-to-afternoon slots on weekends. Religious programming would be shown after midnight. The network's target audience was women between the ages of 25 and 54.

    Read more: http://www.answers.com/topic/ion-media-networks-inc#ixzz1XUecMH4R

    It wasn't long from this brilliant move that PAX was on the choping block. I love Netflix way to much to see it make this type of error. Take the $200 Million and Produce 20 10 Million dollar Shows that you own. There are plenty of us Independent Producers that would work with Netflix, Hulu, Crackle and Amazon to increase new production. Don't let the same thing happen to Netflix that Happened to PAX. Of course no offense to the good people at ION Media Networks that have remarkably improved programming with the wheeling and dealing of the present administration.

    As a Transmedia Catalyst and a Master Customer with 40 years of using the product of Television its time to bring in the new and not fall for the Okie Doke to buy into televisions 30 Second Commercial model on the web.

    I am all for moving more content to the web, but $200 Million going to 10 Producers and the resulting job creation would not allow me to be silent if this is true.

    To All Social Media Entertainment Companies. Google TV, Apple TV, Amazon TV, Facebook TV. Click and Buy is here. Content can be made interactive and profitable on the web. The Analytics and Data will be well worth the investment for you, your Advertisers and Customers like me who are tired of subsidizing Commercials and Reruns will Thank you Forever.

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