Are Studios Addicted to Netflix Streaming Money?

paidContent reports that Analyst Tony Wibble believes the studios are becoming addicted to Netflix streaming money (and upgraded the stock from "sell" to "neutral").

For one, Wible noted that TV Everywhere — the cable industry’s attempt to counteract subscription video-on-demand services like Netflix and Hulu by porting over pay TV content to digital devices — is moving at an “embarrassingly slow pace.”

Wible also believes Netflix’s pipeline to premium Hollywood content remains safe, even though content licensors like Viacom are seeing their traditional models negatively impacted by subscription streaming.

In fact, referring to what he calls a “studio addiction” on Netflix, Wible described something of a vicious circle, whereby media companies see their ratings and ad revenue hurt by Netflix streaming, and respond by licensing even more content to the service.

Comments

[frank]

I've started watching numerous tv series via Netflix, Hulu, and the network studios official web sites that I would have otherwise never gotten around to seeing.

I've even caught up enough to start watching the tv series latest episodes/seasons via LIVE tv or recently aired episodes when watching HULU or watching via the Network's web sites.

I would think Netflix, Hulu and the Network/Cable web sites are easy money for the studios and everyone involved, through advertising revenue and licensing.

I'd much rather support the people behind the show, including the studios/network by watching through a legitimate channel/source than via one of those non legitimate streaming, torrent, download venues.

Foosball is NOT the Devil.

[Ethan]

Momma told me it was.

[ScottZ]

I sure hope so. Many Netflix customers like myself who have cut the cable will only watch content that is on Netflix. So if it isn't on Netflix, getting Netflix money, I am probably not watching it.

[Denise]

I've also gotten started on many series on Netflix. If I like a series enough to want to watch it when it airs, I buy a Season Pass on iTunes. If they aren't selling it on iTunes (HBO, I'm looking at you), then I download it elsewhere. I'm not going back to cable!

I've bought the last two seasons of Mad Men from iTunes, plus the last season of Breaking Bad and the Killing, and fully intend to purchase the upcoming season of Breaking Bad as well. That's money going straight to AMC (OK, and some to Apple as well!), and I probably would have never paid any money for those shows (aside from Mad Men, I was introduced to that one elsewhere) if I hadn't got to watch their first seasons on Netflix.