On Fri, Sep 2, 2011 at 11:35 AM, PGage <[email protected]> wrote: > > I think it was clear to all players that a new era of pricing for streaming > premium content was dawning. I think I posted here my concern that the > subscription price for Netflix was going to go way up a day or two *before* > they announced their restructuring, based on an article that went over how > some big competitors, with much deeper pockets than Netflix (e.g. amazon, > google, verizon, att&t) were likely to start competing with Netfllix for the > streaming deals, pushing Netflix's costs for content from around $200M to > $2B. So, Starz may want to protect its premium brand, but it no doubt also > wants to keep its options open, and be available for a bidding war between > Netflix and other competitors over the next 12 to 18 months. I think Netflix > realized that its profit margin, and potential growth, made streaming its > future, not mail-order, and is trying as hard as it can to restructure so it > can put as much of its capital as possible in making bids for streaming > content. NF does not have nearly as much capital as google or at&t, but what > they do have is an existential dependence on streaming content - they are in > a position to go all in on these deals, while google may not be willing to > overpay as much. They have never really cared about the 8% or so of their > customers who might cancel because of the restructuring, because their eye > is on a much bigger and more important prize - their continued existence. > Netflix has already made the decision that they are not going to become a > low-tier backwater provider - they will either be the major online > alternative to cable and satellite TV, or they will be out of business soon.
I ask this out of ignorance and unwillingness to do the research: does Starz have any original content? Unlike HBO and Showtime I don't know of any and the Starz shows/movies I saw on Netflix came from different studios. Assuming Starz does not, and they act as an aggregator of others' works, it looks to me like they less value to Netflix today than they did a couple of years ago when Netflix was launching its streaming service. If Netflix can reach deals with Paramount, Warners, Fox, Disney, etc for content, then a deal with Starz is unnecessary. And should other producers want to launch their own streaming services, even if their pockets are deeper they face significant disadvantages. Netflix already has a customer base of subscribers and the only things that will lure them away are a much lower monthly fee or much larger selection. -- TV or Not TV .... The Smartest (TV) People! You received this message because you are subscribed to the Google Groups "TV or Not TV" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/tvornottv?hl=en
