Boom. In what could be the shot heard round the world for the cable industry, Netflix has fired the first volley: the company will create it’s own content. The company has secured a 90s British miniserieis (hey it worked for The Office). The series will feature Kevin Spacey and David Fincher (of The Social Network fame).
Clearly, Netflix can profit more from original content then spending billions to secure the content of other producers. Recently, Netflix spent a reported $1 billion to secure Paramount, Lionsgate and MGM pictures for five years. If Netflix finds success, we anticipate more original Netflix shows will follow.
How successful does Netflix have to be to become a legitimate alternative to cable? The definition of what a content provider should be is in flux. Some suggest a stable of news programing is a must. Other suggest access to nationalnetworks such as ABC, NBC and FOX. At the end of the day, the only vote that matters is what consumers are willing to pay for.
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