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Redbox (CSTR) and Verizon (VZ) could be looking to break into original programming. At a recent...

Redbox (CSTR) and Verizon (VZ) could be looking to break into original programming. At a recent tech symposium, a Creative Artists Agency lawyer tipped off that the companies have been inquiring about programming opportunities. If the report pans out, it makes for beefier streaming competition for Netflix (NFLX) and Amazon (AMZN).
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Comments (2)
  • DIgitalMediaView
    , contributor
    Comments (668) | Send Message
     
    The concern that emerges around the CAA disclosure is not just the dramatic expansion of the competitive field for original programming, but the rapid escalation of production costs. NFLX was selling the idea that it's consumer database was its competitive secret weapon, making them a more cost-effective producer of hits. But it appears instead that NFLX is simply outspending everyone else including the major broadcast networks on original shows: http://bit.ly/WcG5gm. (The one possible exception is HBO in a handful of instances; HBO has over three times NFLX subs and over a decade of experience mastering this game plan.) How is this sustainable on NFLX's miniscule margins?
    11 Mar 2013, 10:32 AM Reply Like
  • Whirledmuse
    , contributor
    Comments (9) | Send Message
     
    Extremely good point.
    12 Mar 2013, 01:38 AM Reply Like
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