Media
Netflix Threatened with Another Loss of Content (NFLX, DIS, CMCSA, LMCB, AMZN, TWC, DTV)
Published:
Netflix currently distributes popular A&E channel programming like “Storage Wars,” “Ice Road Truckers,” and “Pawn Stars,” as well as the network-owned History channel. According to a report in industry magazine Variety, Netflix has already decided to let go of the 40 or so shows it gets from the network, which total some 800 hours of programming “because the viewership [doesn’t] justify the licensing cost.”
The magazine also cites Netflix’s chief content officer:
While we do not comment on our deals and partnerships, expect some of the A&E and History programming to drop and some to remain on Netflix.
Last February, Netflix lost its license to distribute programming from the Starz network, which is majority owned by Liberty Media Corp. (NASDAQ: LMCA).
One sticking point could be a Netflix demand for exclusive distribution rights to some or even all of the network’s programming. But given the options available to A&E, Netflix is not in a particularly strong bargaining position here. Netflix has demonstrated that having a vault full of back episodes of the popular shows can generate viewer interest in the new season’s shows, but A&E could get similar interest from streaming competitors like Amazon.com Inc. (NASDAQ: AMZN), Hulu Plus, and Comcast’s Streampix, as well as cable competitors like Time Warner Cable (NYSE: TWC) and DirecTV (NASDAQ: DTV).
Even if Netflix is able to retain rights to some or all of A&E’s programming, the cost will be high and will continue to eat away at the company’s bottom line. Content owners now have several offers to choose from and are finally developing their own streaming distribution channels. That will only make Netflix’s position harder to maintain going forward.
Shares of Netflix are down 4.6% at $57.74 this morning, in a 52-week range of $52.81 to $162.99.
Paul Ausick
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.