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Netflix, Inc. Message Board

  • agamemnus_0 agamemnus_0 Jun 18, 2013 1:32 AM Flag

    For content, does Netflix pay per subscriber now or per show watched or flat fees or what?

    This kind of information is crucial to valuing the company.
    I would think it is more equitable for all involved to everyone to pay per show watched, or even per second watched.
    Per-subscriber would be a road to ruin to Netflix, if the terms are unfavorable.
    Flat fees might work if Netflix is able to increase its base substantially. But going forward, content providers will ask for higher fees. In fact, isn't that what caused it to go to 58?

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    • Content providers don't ask for higher fees they let the free market do that. Netflix is doing mostly exclusive deals now and they bid with other companies for the content. Netflix went to 58 because Netflix had to discontinue DVD + streaming for $10 because after their initial licensing deals expired content providers wanted Netflix to pay the much higher going market prices. That can't happen again because Netflix has become a price setter along with the other distributors including cable and satellite.

      Sentiment: Buy

    • Ultimately they will adapt PPV for some premium movies IMO to realize value and get current movies into their streaming mix - Netflix's huge hole where Amazon and Verizon will be breathing down their neck.

      Right now Indy producers have no stake. There is no profit sharing incentive for them to promote movies going directly to streaming.

      You are right per subscriber with unfavorable terms would be a disaster. PPV could also be a positive supplement - all you get now for $7.99 plus current movies at a great PPV price if you want.

      • 1 Reply to lifesweetingreencountry
      • I don't think that netflix will ever adopt a PPV model because PPV ruins the beauty of the flat rate monthly all you can eat model which has been the single most important for their success. That was the reason they killed blockbuster.

        what i could see netflix doing instead is to PAY CONTENT CREATORS a rate per view and i wouldn't doubt it if dreamworks actually got that type of deal.

        it would be a hybrid solution. charge end users flat monthly rate, pay content creation partners per view.... love it!

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