Sorkin's new movie (chicago 7) is only on netflix because of COVID.  It was
scheduled for theaters, but netflix picked it up in September.

(sorry I don't have a hyperlink for the article I read earlier this week)


On Fri, Oct 23, 2020 at 6:48 AM Adam Bowie <[email protected]> wrote:

> I still like Netflix. It'll be one of the last TV services I cancelled if
> forced to make a choice. I enjoyed the new Aaron Sorkin movie last week,
> and this week watched the new version of Rebecca (lavish, but ho-hum - and
> I'm a massive fan of the director). It's a no-brainer if they keep churning
> out at this rate.
>
> But there was an interesting piece in Quartz this week about their
> reliance on library titles that they don't own. Those Friends, The Office
> and Parks & Rec re-runs are (or were) very popular. And they've not yet
> managed their own 100 episode+ bingeable comfort food like that. And if
> they keep cancelling stuff quickly, they never will.
>
> https://qz.com/1918007/netflixs-original-shows-are-rarely-its-most-popular/
>
> Incidentally, what I really don't like about Netflix is their corporate
> culture. Really quite savage. I recommend a recent podcast series by Peter
> Kafka and Rani Molla - Land of the Giants. The first episode gets into that
> culture: https://www.vox.com/land-of-the-giants-podcast
>
>
> Adam
>
>
> On Fri, Oct 23, 2020 at 4:55 AM PGage <[email protected]> wrote:
>
>> I don’t know if Netflix’s model will work, but I admire what they have
>> been doing. They determined very early on, when they we’re still mostly
>> mailing out DVDs,  that the future of their business was streaming.
>>
>> And they knew back then that eventually they would be going up against
>> companies with MUCH deeper pockets than theirs. They also knew that soon
>> enough the big content companies were going to stop making it so easy for
>> Netflix by letting them pass on their product. So they decided to invest
>> heavily in developing content, hoping that their commitment to spending,
>> market share and name recognition would allow them to beat the big boys in
>> the coming wars.
>>
>> A decade or so later, those wars are here, and the fact that Netflix is
>> still holding its own is impressive. Maybe they can’t spend their way to
>> victory, but almost certainly if they stop spending, they lose.
>>
>> Total Assets of Netflix and some competitors (per the Wiki report on each
>> company page):
>> Netflix: $34B
>> Warner Media (HBO): $69B
>> Disney: $193B
>> Amazon: $225B
>> Comcast: $263B
>>
>> I think Netflix’s strategy basically is to make it so expensive for most
>> of the Big Boys to play the streaming game that they decide it’s not worth
>> it to lose money in a non-core part of their business. If that is even part
>> right, after an initial pandemic pause I would expect them to jump right
>> back in to contributing their share and more of Peak TV.
>>
>> I have been rooting for them from the beginning, and I still am.
>>
>> On Thu, 22 Oct 2020 at 6:11 PM Adam Bowie <[email protected]> wrote:
>>
>>>
>>> On Fri, Oct 23, 2020 at 1:41 AM Doug Eastick <[email protected]> wrote:
>>>
>>>> ok.... so I understand now that Peak TV means quantity.... or a large
>>>> pile with a peak -- ok, got it.     I've been wondering about this crazy
>>>> volume of productions for a few years now (basically once the streamers
>>>> like Netflix started winning Emmys).   The crazy volume of shows, I don't
>>>> think, can be sustained from an economical basis.   Sure all these
>>>> streaming studios/channels will disrupt the TV economy/landscape, but is
>>>> this not like the DotCom boom?  So much money out there based on vacuous or
>>>> hopeful eyeballs and unproven models.
>>>>
>>>
>>> I think it's widely thought that there *is* also a new golden age of TV,
>>> because there are definitely a lot of high quality series out there. You
>>> still have to hunt though. Netflix may have hit it out of the park with
>>> House of Cards and Orange Is The New Black when it started. But now we get
>>> Emily in Paris... but also The Crown.
>>>
>>> I'm certain that the model isn't economical any more. In the old days,
>>> there were massive syndication revenues to be achieved (and for some
>>> perhaps there still are), but now you have Netflix spending more than they
>>> earn, and attempting to make TV shows not just for the US, but the world.
>>> The UK is now their number three production base, but Netflix is making TV
>>> in pretty much every European country, as well as places like India,
>>> Australia and dozens of other places. And they're making movies - they want
>>> to win Oscars. And they're making reality TV. And then there's the vast
>>> volume of kids stuff that I suspect few of us here are watching.
>>>
>>> They need to sign up a hell of lot of people to make their business
>>> model work.
>>>
>>> Meanwhile Amazon and Apple can essentially subsidise their TV services
>>> while they play their game (Amazon can amortise their spend against other
>>> Amazon revenues, but I reckon Apple will be out of TV production in a few
>>> years' time). But the spending is just a rounding error on their
>>> spreadsheets.
>>>
>>> If you're HBO Max or Peacock, you have to build an offering that's equal
>>> to that of Netflix. Viewers expect it.
>>>
>>> It's all got to be unsustainable. And where it leaves traditional
>>> networks I have no idea.
>>>
>>>
>>> I would really LOVE to see some of the inside metrics of Netflix and
>>>> their "renewal" decisions (prior to Covid-19).
>>>>
>>>
>>> From what I've read, there's a whole bunch of stuff. They're looking at
>>> 28 day views from launch, as well as overall views. But they also really
>>> need stuff that brings in new viewers. So if a show has settled down with a
>>> viewership base after a couple of seasons, and isn't still growing, or
>>> bringing in new viewers, then it's more likely to be cancelled.
>>>
>>> There's also the production model and the costs. In traditional TV, the
>>> production company can do things with the show after it's been on network
>>> TV. They can put it in syndication, sell it globally, licence it to
>>> streaming services or whatever. That's where the profit for the studio who
>>> makes it comes from. But Netflix doesn't really do most of those things. So
>>> they have to overpay on production costs for their originals because they
>>> want *all* the rights upfront. So the only revenues the producing studios
>>> can get are the fees from Netflix. So these tend to be stepped upwards -
>>> the show gets more expensive the longer it's on air. While that's often
>>> true for network TV too - casts of hit shows getting massive pay bumps -
>>> there's those down the road deals to mitigate the increases. For Netflix,
>>> they just see costs increasing season or season.
>>>
>>> There does seem to be a lot of "cancelled after two seasons" on Netflix,
>>> and these are some of the reasons. The downside for viewers is shows that
>>> don't wrap up properly or get left on unresolved cliffhangers. Will viewers
>>> start to get fed up with Netflix if they continue that? Maybe in due course.
>>>
>>> Now you can factor in the Covid costs too.
>>>
>>> Personally I can't see the Netflix model ever making enormous sense. The
>>> scale they have to work at to entertain the world is too much. While
>>> Americans might watch the odd British show and certainly vice versa, the
>>> same isn't always true of, say French viewers or Indian viewers. They'll
>>> watch a bit, but they like things in their own language featuring their own
>>> cultures. So Netflix has to make local language stuff in pretty much every
>>> territory they operate in. Netflix *has* done a decent job with this to an
>>> extent - the Spanish series Money Heist is truly popular globally for
>>> example - but that's an exception. Netflix needs those global viewers to
>>> all be spending their $5-15 a month to make the numbers add up.
>>>
>>>
>>> Adam
>>>
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-- 
Doug Eastick <[email protected]>

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