Netflix (NFLX +1.2%) at the Morgan Stanley Technology, Media and Telecommunication Conference:...

Netflix (NFLX +1.2%) at the Morgan Stanley Technology, Media and Telecommunication Conference: 1) CEO Reed Hastings maintains that the success of House of Cards is confirmation that the firm can build out some of its own content. 2) Data mining will help the company invest in content with profit potential. 3) Once again, Hastings takes a shot at HBO as he reiterates that Netflix will become HBO long before HBO becomes Netflix. 4) The presence of Hulu and Amazon Prime has helped shore up the overall relationship between content providers and the streaming companies. (webcast)

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  • DIgitalMediaView
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    The take of others is that Hastings totally downplayed the significance of House of Cards to NFLX at the Morgan Stanley conference today. Said real impact would come in season two. Not driving the viewership and net sub adds everyone expected based on the hype?
    25 Feb 2013, 03:31 PM Reply Like
  • Yokyok
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    Lillehammer was vastly more enjoyable than the utterly drivelish House of Cards
    25 Feb 2013, 03:34 PM Reply Like
  • forceOfHabit
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    I have said this before about NFLX. I don't see how they have any competitive advantage in terms of producing content. That's a tough business with many seasoned competitors. NFLX should stick to distribution and become expert buyers (not producers) of content, focused on getting popular and profitable movies and tv shows at attractive prices.
    25 Feb 2013, 04:11 PM Reply Like
  • skibimamex
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    you seem to confuse being a financier, purchaser, underwriter, buyer of original programming with being a "producer" -- a producer is simply the guy who pays. the "production" company is teh guy that organizes the creative writing, the direction, the talent, the filming and post production. Each of the "originals" that Netflix, or Starz, and most of Showtime, is simply where they are the checkbook that "greenlights" a content piece. HBO is more backward integrated and actually buys book rights and hires screenwriters to develop projects. Each of originals (except Lilyhammer, and the forthcoming Pixar postquel TV series), such as HOC, Orange is New Black, hemlock Grove were shopped to the other pay cable networks.


    Netflix 's competitive advantage, if you want to know, relative to broadcast television, is creative freedom in terms of adult themes, profanity, nudity, violence, and not held to 22 and 44 minutes plot lines with specific tiem for commercial breaks, and the need to "hook" the audience in a pilot and, particulalry serialized drama, within a short number of episodes, distributed primarily via appointment viewing, interrupted by commercials, or otherwise the "fade" in audience will likely make it a one season show. With respect to the other pay cable networks where Showtime has more 1/2 hour comedic adult drama, and HBO having the larger mix of serialized drama. The existing networks are still held to time slot sizing (these without ad inserts) since sitll primarly linear viewing (with repeat cycles) and more limited on-demand viewing. The binge offering strategy has largely been viewed by observers in the context of viewer acceptance or gamining their subscription, but the real power is to used to attract creative talent and artist. Netflix is not held to a time slot, a director can have one episode of 54 minutes and another at 68 minutes, there is no fixed size convention in on-demand viewing. And the appeal of binge viewing or availability of all chapters is that the creative artist is able to offer immediacy and continuity of story to "hook" the audience when she is most prone to want to view th show and therefore heightening the opportunity for engagement. For a David Fincher, who cut his teeth in movies, it is the abilty to tell a long-form story, essentially a 13 hour movie.


    "He said that he was interested in doing television because of its long-form nature, adding that working in film doesn't allow for complex characterizations the way that television allows. "I felt for the past ten years that the best writing that was happening for actors was happening in television. And so I had been looking to do something that was longer form," Fincher stated."


    or from artist perspective: "Spacey supported the decision to release all of the episodes at once, believing that this type of release pattern will be increasingly common with television shows. He said, "When I ask my friends what they did with their weekend, they say, 'Oh, I stayed in and watched three seasons of Breaking Bad or it's two seasons of Game of Thrones."


    Such a release strategy gives an advantage to an on-demand network that allows the audience to size their consumption units, one show at a time, 2 hours, or more, and also to start/stop how they chose to view the content. That is appealing to talent because it gives greater opportunity for viewers to engage through the whole story rather than fall off due to a missed appointment window or the need to wait.
    27 Feb 2013, 01:46 AM Reply Like
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