A content monopoly is exactly what Hollywood fears Netflix has become. Why such a harsh label? Let’s look at it by the numbers.
- $6 billion: How much Netflix spends annually on content. That content earned Netflix 54 Emmy nominations in 2016. This has begun to worry studio and cable company executives who fear they will be unable to compete. Netflix has 83 million subscribers, which means it has the buying power to out bid smaller industry players for programing. Agents also are concerned. Netflix purchases all rights to its programming which eliminates profit sharing, a source of income for many shows. Source: Hollywood Reporter
- 600 hours: The number of hours of scripted original series produced for Netflix. In 2013, the streaming giant had one series, House of Cards. This means Netflix now produces more hours of content than any individual cable network. Netflix’s 54 Emmy nominations are more than all but two cable networks. Streaming services like Netflix and Amazon had their Emmy nominations increase by double digits. Meanwhile, traditional cable network HBO saw nominations decline by double digits. Source: Business Insider
- $120 million: The amount Netflix has spent to produce 12 episodes of its original series, The Get Down. This buying power doesn’t stop with television. Netflix is producing a film and offered $20 million to Brad Pitt to star in it. This year, Netflix is producing 126 scripted shows – the streaming service also produces children’s programs, documentaries and unscripted series – while the television networks produced 409 combined. Unlike traditional networks, Netflix isn’t defined by demographics. It can produce content in a variety of genres which means Netflix can easily adapt to a changing industry. Source: Geek
- 40%: The percentage of content one media source can produce when it starts to become dangerous to the industry, according to FX Networks chief John Landgraf. Holding such a large percentage of the market means it controls most of the industry’s “storytelling” as Landgraf calls it. Content creators also find dealing with Netflix to be atypical of the entertainment industry. Netflix doesn’t share with content creators how their shows will be marketed. It also doesn’t contact them to discuss how well a show is doing. Fear among the industry is that as competition gets squeezed out Netflix will no longer pay a premium for programing. Source: The Next Web
- $3 billion: How much Amazon pays yearly for content. It is followed by HBO at $2 billion. This, journalist Peter Nowak contends, means Netflix is not a monopoly. It merely represents a change in the entertainment industry. Nowak argues that cable networks are upset because they are not studio’s only customers. Netflix also isn’t a monopoly because it does have competition and it can’t raise prices with losing customers, he says. The company is still adding customers, but at some point, its growth with stop.
Source: The National
Top photo: © Gettyimages/ Daviles
