Tuesday, November 22, 2011

Netflix Moving Toward Original Programming Could Be a Good Sign - Yahoo News

COMMENTARY | Netflix seems to be having a tough year. But the streaming video giant recently raised $400 million, so at least one venture capital company has some faith that Netflix can turn itself out of the rut it seems to be stuck in. Fortunes can change quickly on the Internet, and it seems that Netflix is poised to follow YouTube into exclusive original content. Netflix is moving aggressively, and it seems that subscribers, at least of the streaming service, are going to be well rewarded.

Netflix into the realm of original content by renewing "Arrested Development" exclusively for subscribers, although episodes will not be available until 2013. Within the past six months, Netflix signed agreements with Disney-ABC, NBCUniversal and CW to allow content to continue to be available. The move into original content could become an important part of the Netflix strategy.

Since YouTube and Google are going to poor $100 million into 100 original content channels, including a Disney Channel, Netflix could not just stand still and let the streaming business slip away. Apparently, if Netflix goes down, it will go down swinging. Since the YouTube issues will free, Netflix is going to have to a bit more resurrecting of old television series to keep the ball rolling and keep subscribers paying.

Netflix is expected to post the first ever yearly loss in 2012, but they are taking steps to improve their catalog. With Amazon's Kindle Fire heating up tablet computer sales, Amazon's Video On Demand service will be a hot commodity as well, which combines with Netflix and YouTube to put a lot of technology muscle into the streaming service competition.

Whether or not there is room for more than one service, and how much it can charge, will be one of the more interesting answers learned next year. Netflix seemed to stand idle and take one bad step after another for a few months, and now hopefully the company is starting to right the ship.




Source: http://news.yahoo.com/netflix-moving-toward-original-programming-could-good-sign-213800577.html






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