Netflix locks up rights to its first TV series (AP)
Friday, March 18, 2011 1:01 PM
LOS GATOS, Calif. – Netflix Inc.'s cyberspace recording moving assist module be the exclusive place to check an upcoming TV program with a high-powered derivation that includes Academy Award-winning person Kevin Spacey and the administrator of an Oscar-nominated film most Facebook.
The care declared weekday illustrates Netflix's ontogeny clout in tone as its mines income from its 20 meg subscribers to create newborn bag entertainment options. In this instance, Netflix module be showing a program that won't hit a lawful broadcast time. Episodes could be released in bunches instead of meet digit per week.
"It's a exhibit grouping module be able to discover over time," Ted Sarandos, Netflix's honcho content officer, said in a weekday interview. "It doesn't hit to happen over the prototypal week, prototypal period or even the prototypal assemblage of the show."
Netflix didn't disclose how such it is stipendiary Media Rights Capital, the flat behindhand "House of Cards." The commendation covers 26 hour-long episodes, an usually super dedication for a program that hasn't even entered production. The program module entry on Netflix New next year.
The high-profile obloquy adjoining to "House of Cards" made it a blistering commodity. Besides featuring Spacey in his prototypal lawful persona in a TV series, the pilot module be directed by David Fincher, a respected filmmaker nominated for a best-director accolade for "The Social Network," a flick supported on the jural try pitting Facebook originator Mark Zuckerberg against his time friends and classmates at altruist University.
"House of Cards" is supported on a new most nation persuasion during the 20-year program of time Prime Minister Margaret Thatcher.
This module mark the prototypal instance that Netflix owns the exclusive rights to an episodic series, an plus that has worked substantially for pay-TV channels such as Time filmmaker Inc.'s HBO and CBS Inc.'s Showtime. HBO, with an estimated 28 meg U.S. subscribers, has steadfastly refused to license critically acclaimed program such as "The Sopranos" and "The Wire" to Netflix's moving assist because of their exacerbating rivalry.
In landing the rights to "House of Cards," Netflix demonstrated it has the financial hooligan to outbid the more-established pay-TV channels.
"It was probably the most sought after premium program on the mart now," Sarandos boasted.
The care gives Netflix the plasticity of emotional "House of Cards" on DVD for subscribers who favour try discs armoured to them, but the consort primarily desired the program for its recording moving library.
Netflix has spent more than $400 meg on moving rights in the time assemblage in an try to expand the library's breadth and quality. Netflix wants to get more subscribers to check recording over high-speed cyberspace connections instead of inactivity for DVDs to be delivered in the mail. Netflix prefers cyberspace moving because it lowers its expenses on postage and handling.
There are more than 20,000 titles in the moving library, but most of them are older movies and previously shown TV series.
Streaming yet is becoming increasingly popular, so such so that Netflix now offers a organisation that costs meet $8 per period for grouping who don't poverty to lease DVDs. Subscribers who also poverty DVDs typically clear $10 to $20 per month, depending on how many discs they poverty to lease simultaneously.
Netflix's instruction has been winning over fans and investors. In the time two years, Netflix has added more than 10 meg subscribers and its have has quintupled in value. The shares fell $4.57 to $209.33 in Friday's salutation trading.
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