What’s the cost of entering the world of television programming? For Netflix, it’s right around $100 million, and there are no guarantees.
Netflix Inc. has reportedly entered, and is winning, a bidding war for a new David Fincher directed project starring Kevin Spacey called, “House of Cards.” This landmark move means that Netflix is now getting into programming original content.
Yes, this could forever change how people watch TV. And yes, I’m OK with it.
I have always been a huge Netflix fan. They are constantly innovating and creating new, and often times better, ways for us to watch our favorite movies and TV shows. Over the past few years, Netflix’s introduction of instant streaming accessible through everything from laptops to XBOX 360s has put them in a class of their own. Now that they have ousted Blockbuster, they’re continuing to evolve, and hoping to take on new opponents like HBO and AMC.
What’s even ballsier about this move is the terms to which Netflix has agreed upon in order to make the deal. According to the Wall Street Journal, this distribution deal will give Netflix exclusive rights to release the program to its users via streaming online. It’s also set to cost the company in the ballpark of $100 million for a guaranteed two seasons and 26 episodes.
In case you haven’t figured it out, deals like this don’t ever happen because of the risk involved – companies don’t want to spend 100 mil and then have the show flop. Even a guaranteed winner like “Boardwalk Empire” didn’t get picked up for a second season until a couple episodes into the first one. The production company financing the series, Media Rights Capital II LP, will still be allowed to make arrangements for later programming or DVD sales, but if this deal goes through, and it’s looking like it will, Netflix will again be breaking new ground.
I say more power to them. Subscriptions to channels like HBO cost too much money and aren’t nearly as convenient or user-friendly as Netflix. People might hate on them, and Hollywood might want to put a bounty on their heads, but Netflix has only done good in my eyes.
[via Wall Street Journal]