Netflix: The Monster That’s Eating Hollywood

I linked to this article in my post (500ish, below) about Netflix, but worth highlighting a couple parts by Joe Flint and Shalini Ramachandran:

Netflix is also attracting big-name reality show creators like David Broome of the hit NBC weight-loss show “The Biggest Loser.” In an interview, Mr. Broome said he struck a deal with Netflix that will give it first dibs on all his future creations ahead of other networks, and allow him to sell merchandise world-wide based on his Netflix shows, with the streaming service receiving a cut.

Had not heard about the ROFR (right of first refusal) clause and the merchandizing element of these deals before. But it's smart. Netflix is getting more aggressive as it grows in power...

Some TV executives are trying to turn one of Netflix’s supposed selling points—releasing entire seasons of shows at once for users to binge—into an argument against the company.
“I think a lot of people have now come around to say it’s nice when your show is out there 10 or 13 or, in the case of ‘The Walking Dead,’ 16 weeks. That is cultural currency,” said Joel Stillerman, AMC’s president of programming. Advocates say the “water-cooler effect”—friends chatting about and spreading excitement for a show—can help build its momentum.

I've made this argument as well in the past. I can see both sides. But there is no question that Netflix owns this model for releasing things. 


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