[opendtv] =?utf-8?Q?Re:_[opendtv]_Re:_Netflix_Is_6%_of_TV_Business,_43%_of? =?utf-8?Q?_Ratings_Decline_—_Nathanson_|_Re/code?Date: Sat, 25 Apr 2015 11:27:51 -0400

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>

On Apr 24, 2015, at 9:50 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:


Reading this, it's oddly similar to the Aereo situation. So Netflix is
stealing customers from the traditional TV networks, by using their own
material? How strange. Why don’t the congloms simply out-Netflix Netflix,
then?

What an absurd comparison!

Netflix is not stealing anything. They are paying the content owners billions
for their library content. They created a market that the content owners did
not understand. Syndication was always critical to the success of the content
owners. But they did not foresee that there would be strong demand by binge
viewers as described in the article. Their business model was based on scarcity
of high quality content and forcing the viewers to schedule appointments to
watch it.

The DVD was actually the first major break with this tradition, making complete
seasons of programs available to viewers. The DVR made appointments
unnecessary, if you could remember to program the damn thing. SVOD requires no
forethought.

Kind of makes CBS All Access seem like a pretty good idea. People seem to
like the old show libraries, and people seem to subscribe readily when the
monthly rate is low. This is how the TV landscape changes over time.

Hmmmmmmm.

CBS All Access is $5.99/mo and in most cases the live CBS network feed (if
available) is already coming into the home via antenna or MVPD.

Netflix is $8.99/mo, offers shows from all of the networks AND an increasing
amount of original content free from commercials and the content restrictions
that CBS must follow as an OTA broadcaster.

Which one do you think most people are choosing?

Regards
Craig


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  • » [opendtv] =?utf-8?Q?Re:_[opendtv]_Re:_Netflix_Is_6%_of_TV_Business,_43%_of? =?utf-8?Q?_Ratings_Decline_—_Nathanson_|_Re/code?Date: Sat, 25 Apr 2015 11:27:51 -0400 - Craig Birkmaier