Episode 24: The Netflix Advantage

Terence and Philip consider the changes to the financial dynamics caused by Netflix’s funding of House of Cards. Is Netflix a new studio model?  Where’s the opportunity for innovation in programming if everything is data driven?

Philip’s NAB session on “Growing and Monetizing an Audience” is mentioned. If you want to go and haven’t yet registered register at http://bit.ly/NABSM08 to get the discount automatically, or at http://www.nabshow/register using the code SM08.

Late breaking – Google is also getting into the content business. (If you hit the WSJ paywall, head to news.google.com and search for “Google to revamp YouTube with Channels”)

8 thoughts on “Episode 24: The Netflix Advantage

  1. It would be pretty interesting if Apple adopted a model for content in the iTunes store like it has for Apps. How about an annual $99 iTunes Producer’s Membership, the 70/30 revenue split, and the indie producer all of a sudden has the same marketplace on tap as the app developers do today. Couldn’t that model work? It’s up to Apple. Amazon could do the same thing, like it has with books. If Netflix is throwing up roadblocks to the indies, that leaves an opportunity for the other guys already established in that space to scoop up some diamonds in the rough.

  2. Agreed. And I believe that is Apple’s long term plan. The new FCP should fall right into that line-up. Then Apple controls production, post and distribution. And they sell the viewing devices. Not a bad model if you can pull it off.

  3. I think you hit the nail right on the head with this one. The Netflix model is better for consumers, and it’s better for producers, and probably even better for advertisers. Who it’s not good for are the middle-men, the broadcasters. And if the last decade has taught me anything it’s that the internet hates middle-men.

    Still don’t think that Netflix’s postal business will dwindle to nothing, but maybe morph. There’s a lot of value in having a physical presence in someone’s mailbox.

  4. I just came across your podcast today from another site and really enjoyed it. Would it be possible to post your NAB presentation on the website for those who can’t make it to NAB?

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