Netflix content model – is it sustainable?

NETFLIX LOGO

After blasting through nearly a half seasons worth of “House of Cards” in one afternoon, I wonder if this model of all-you-can-eat media is sustainable. Netflix’s second entry into the world of original content production is an entertaining and well produced epic dealing with scandal, corruption and politics in Washington DC. Big name actors and location shooting pushed the first season’s cost into the 100 million dollar range. Did I like it? The short answer is… yes, absolutely. Can Netflix afford to continue this way? I don’t know. If most users are like me and binge consume this content, most subscribers will have exhausted the content in as little as a weekend.  With only one other original project in the pipeline, so far,  Netflix will have very little original content to offer between “seasons”. How many shows would Netflix need to offset the bingers? 10?100?1000? I don’t know,  but I think Netflix is watching the stats of their new shows closely  and if their past is any indication, they are coming up with an algorithm to quantify just that.

3 thoughts on “Netflix content model – is it sustainable?

  1. I’ve been wondering the same thing: how is this going to be profitable for Netflix? I see online streaming slowly taking over tv watching (it seems a lot of people are forgoing cable for streaming), but is it too soon? Maybe Netflix really is on to something, though, and they’re actually… geniuses…

  2. I hope they are onto something, as I really like their content. I think it worked well for HBO because HBO already had paid viewership, but having all the episodes of a new show release on the same day may prove hard to keep up with. HBO GO on the other hand would be awesome if it were free of a cable subscription, even with a typical metered out season of releases… Food for thought Netflix?

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s