Why Are The Networks Afraid Of Netflix?
March 25, 2011
In a move that could further isolate Netflix, Starz plans to delay the availability of new TV shows and movies from its network to the online-video giant, according to The Wall Street Journal. This comes just days after CBS Corp. announced plans to drop Netflix all together, and seems to stem from Netflix’s desire to begin offering its customers original programming.
Starz, owned by Liberty Media Corp., said that beginning April 1, that new shows will be delayed 90 days before being available on Netflix and other Internet services to which it licenses content. In addition, the same delay will affect the release of future first-run movies.
Netflix, with its 20 million subscribers, has caused quite a storm since announcing it will begin making original content available through its website and iOS apps.
The first of these programs will be the hour-long drama, “House of Cards,” starring Oscar Winner Kevin Spacey and produced by David Fincher (“The Social Network,” “Se7en”). The show is expected sometime in 2012.
Earlier this week, CBS Corp.’s Showtime said it would no longer provide Netflix access to some of its current shows, including “Dexter” and “Californication.”
Time Warner, owner of HBO makes none of its content available on Netflix.
While none of this is surprising, since it certainly stems from the desire for cold hard cash, you begin to wonder what network executives are thinking. After all, this follows the announcement that some networks are trying to bar the same Time Warner from offering live TV streaming using its TWCable TV app.
You would expect networks would want customers to have more access to its programming and not less.
With regards to Netflix helping to release one new original program, what is the big deal? Could The Wall Street Journal be right, and networks are worried Netflix could become the next HBO?
What do you think? Leave your comments below.