Taking on Cable: Netflix Plans to Launch More Original Programs Next Year
By Rob Scott
December 4, 2012
December 4, 2012
- After releasing its first original series in February (“Lilyhammer,” starring Steven Van Zandt), streaming provider Netflix is getting ready to launch at least five new original programs in 2013.
- In addition to David Fincher’s political drama “House of Cards,” starring Kevin Spacey and debuting in February, Netflix plans to launch the supernatural monster-mystery “Hemlock Grove,” the comedy “Derek” starring Ricky Gervais, “Orange is the New Black,” set in a women’s prison, and new episodes of “Arrested Development.” A second season of “Lilyhammer” is also scheduled.
- Analysts suggest original programming will be vital to Netflix as it goes up against cable TV for subscribers, a plan that is challenged by budget limitations.
- “While Netflix already competes against premium cable for viewing hours and subscribers, the push into original programming highlights the comparison,” notes the Wall Street Journal. “In addition to a lower price tag — $7.99 a month, against the $15 to $20 that consumers pay for HBO — Netflix offers an option outside traditional cable packages.”
- However, while HBO remains relatively stable, Netflix’s model is in flux, due primarily to the shrinking of its high-margin DVD-by-mail business.
- CEO Reed Hastings has said the company hopes to achieve 60 to 90 million U.S. streaming subscribers (Netflix reported 25.1 million at the end of the third quarter).
- “HBO, Showtime and Starz all have less than 30 million domestic subscribers for their flagship channels,” notes WSJ. “For Netflix to hit its lofty targets, and become a real alternative to HBO, its new investment needs to yield some seriously buzz-worthy shows.”
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