Why Is Netflix Inc. (NASDAQ:NFLX) Excited About Mini-Series?

Posted by Chris Bell November 14, 2013 0 Comment 13868 views

Netflix, Inc. (NASDAQ:NFLX), after teaming up with The Walt Disney Company (NYSE:DIS) through a multi-year agreement for four new live action series based on Marvel characters, is now been approached with a proposal to showcase the movie serial. Business Insider reports that Netflix, Inc. (NASDAQ:NFLX) will get the content sooner for movie serial after it hits theaters.

The proposal basically includes movie studios creating mini-series of about 10 episodes that will be released in theaters every two months. And following their release, such one to two hour episodes would be exclusively streamlined via Netflix, though few weeks later.

Strategic Considerations

First and foremost it goes against Netflix, Inc. (NASDAQ:NFLX)’s traditional model of content consumption that streamlines original series like ‘Orange Is The New Black’ and ‘House of Cards’.

Earlier this year, Ted Sarandos Netflix, Inc. (NASDAQ:NFLX)’s Chief Content Officer mentioned that Netflix users watch several episodes of a show all together rather than spacing them over a period of time and this is significantly changing the way people watch TV traditionally. Given this argument, it might hurt to release a premium show at a pace slower than other shows appear on cable especially when the subscribers come to enjoy marathon sessions of their favorite shows.

Cost could also be a consideration as Netflix, Inc. (NASDAQ:NFLX) may require to invest larger than $4 million per episode it is generally investing behind its original shows. Moreover movie studios could also expect larger investments from the online streaming company as the revenue for the serials split between theaters ticket sales and subscriptions gained by Netflix, Inc. (NASDAQ:NFLX) from customers attracted by the new content.

The Disney Deal

As a part of Netflix, Inc. (NASDAQ:NFLX)’s deal with The Walt Disney Company (NYSE:DIS), the live action shows will streamline beginning 2015 exclusively on Netflix showcasing Marvel super-hero characters Daredevil, Jessica Jones, Iron Fist, and Luke Cage. Each series is expected to be consisting of 13 episodes.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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