Their take on Netflix isn’t backwards. Netflix was able to get all of those shows initially because the streaming licenses were really cheap, cause they were making enough money through cable subscriptions. Once streaming caught on though the companies started raising the prices and/or withholding content because the cable money stopped flowing. Remember Friends cost Netflix $100 million and over $500 million for Seinfeld.
You could be right, but my understanding was that content owners pulled content from Netflix because they thought they could make more money setting up their own streaming services. Most are at worst losing money, and at best not bringing in projected profits, so they’re moving content back to Netflix and taking the licensing money.
In that regards you’re both right, I do think content owners eventually pulled content because they thought there was money to be had. I was just commenting that Netflix originally got a lot of content for cheap because no one originally cared about streaming (and so the licenses were undervalued). I believe Netflix started making a lot more content both to offset the risk of companies pulling content, but to also offset rising license fees.
Their take on Netflix isn’t backwards. Netflix was able to get all of those shows initially because the streaming licenses were really cheap, cause they were making enough money through cable subscriptions. Once streaming caught on though the companies started raising the prices and/or withholding content because the cable money stopped flowing. Remember Friends cost Netflix $100 million and over $500 million for Seinfeld.
You could be right, but my understanding was that content owners pulled content from Netflix because they thought they could make more money setting up their own streaming services. Most are at worst losing money, and at best not bringing in projected profits, so they’re moving content back to Netflix and taking the licensing money.
In that regards you’re both right, I do think content owners eventually pulled content because they thought there was money to be had. I was just commenting that Netflix originally got a lot of content for cheap because no one originally cared about streaming (and so the licenses were undervalued). I believe Netflix started making a lot more content both to offset the risk of companies pulling content, but to also offset rising license fees.