Movie & TV studio executives are still wary of dealing with Netflix
The influence Netflix has on the modern living room is unquestionable, as millions of subscribers rent DVDs and use the company’s streaming services. Netflix has worked to expand its content catalog to offer a streaming advantage that is hurting the DVD & Blu-ray business, but even that may not be enough in the long run.
Consumers won’t suddenly go back to regular cable or satellite service, but will rely on their cable providers and ISPs to offer their own on-demand content. As Netflix, Redbox, and other companies deal with 28-day rental windows and other agreements, with even more problems expected in the future.
Content company executives are still unsure how to handle working with Netflix, except that it must be done with great care. In addition to catering to what viewers want, CBS and other broadcasters must deal with other delicate facets of their business, including advertising and other revenue streams.
“We may be a little bit more cautious. But we are interested in them,” noted Les Moonves, CEO and President of CBS, during a recent investor meeting.
The companies that aren’t doing business with Netflix in the streaming field are worried about their billions generated in network advertising and hundred millions in revenue generated by syndication agreements.
The threat of streaming content and video on demand (led by Netflix) is expected to put Redbox and other rental kiosk services under pressure in 2011. However, consumers will have to wait to see how Netflix handles competition from current rivals — and how it adjusts as future threats continue to emerge.
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