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Netflix (NFLX -1.4%) slips with rumors of new original content from streaming rivals sitting in...

Netflix (NFLX -1.4%) slips with rumors of new original content from streaming rivals sitting in the background. The move could be overblown given the company is an early adopter on programming and has a well-received hit on its hands with House of Cards. On the other hand, with shares up 97% YTD, the need to blow off a little steam isn't unfathomable.
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Comments (3)
  • HarryWanger
    , contributor
    Comments (188) | Send Message
     
    Actually news of costs to produce "House of Cards" much higher than anyone thought. That's hurting this more than competition for original content.
    11 Mar 2013, 10:18 AM Reply Like
  • forceOfHabit
    , contributor
    Comments (62) | Send Message
     
    That's what my reaction has been to NFLX (and rivals') attempts to get into content production...where is their competitive advantage in that business? I just don't see it and I think its a misguided strategy that will cost them dearly.
    11 Mar 2013, 10:25 AM Reply Like
  • DIgitalMediaView
    , contributor
    Comments (668) | Send Message
     
    Totally agree with these comments. 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, 10:37 AM Reply Like
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