NEW YORK - The backlash against Netflix (Netflix Report) has officially arrived, as the studios have begun to protect their product that Netflix covets. Showtime and Starz will no longer provide Netflix with old episodes of "Dexter" and "Californication," while new episodes will be delayed for up to 90 days. Starz also plans on withholding more movie titles in the future.
Starz is the company that CEO of Time Warner Jeffrey Bewkes said, “undermined the business model of cable television." Netflix has also said it is hoping for a new deal later this year with the company. However this may not come to fruition given the recent news. The media companies are afraid, that since Netflix's service is so cheap that they may become the main distribution center for content.
Not so fast Netflix says the studios. The studios controls the content which Netflix covets, meaning the studios can control their puppet with strings. This can be done by forcing their puppet to pay a higher and higher price. Netflix realizes this and it is hoping to break these strings, as it has announced a new TV series called the House of Cards starring Kevin Spacey which will air exclusively on Netflix. This could be a game changer if Netflix itself becomes a studio. Netflix may realize it is not profitable to broadcast a television show without adding commercials and once they add commercials, they will have come full circle and have replicated the model they sought to change.
Our Netflix report can be purchased below.
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