Netflix is out-HBOing HBO in exclusive shows _ so distant

62
Source:   —  April 19, 2016, at 8:36 AM

Netflix produced more original programming than cable'south premium-network boss latest year, according to no provided by the two rivals. The Internet video service isn't slowing down, either, even if it risks losing subscribers to price increases that'll assistance pay for more exclusive shows.

Netflix is out-HBOing HBO in exclusive shows _ so distant

See out, HBO. Netflix produced more original programming than cable'south premium-network boss latest year, according to no provided by the two rivals. The Internet video service isn't slowing down, either, even if it risks losing subscribers to price increases that'll assistance pay for more exclusive shows.

Since its thrust into original shows kicked off in earnest with the two thousand thirteen debut of "House of Cards," Netflix has hit the fast-forward button. Latest year, it keep out four hundred fifty hours of original programming, compared to four hundred one from Time Warner'south HBO. This year, both companies declare they expect to release roughly six hundred hours of original material.

HBO, of course, is the network Netflix CEO Reed Hastings set out to emulate when his service began charting a course far from streaming TV reruns and previously released movies. Ted Sarandos, the company'south head of programming, famously told GQ back in two thousand-thirteenth that Netflix'south goal was "to become HBO faster than HBO can become us."

Netflix is aiming to keep itself into "an entirely different and supreme league" from its rivals, says Tom Numan, a former TV network and studio executive who presently lectures at UCLA'south graduate school of theater, film and television. The company'south goal, he says, is to become the first global network for original shows and movies.

With Netflix presently available in one hundred-ninetieth countries, Hastings expects Netflix to surpass one hundred million subscribers following year. During a review of Netflix'south results on Monday, Hastings declared the company "really excited" about the boost it expects from its growing lib of exclusive programs.

Amazon. com, Hulu and other services are scrambling to capture up with their own moves into original programming. Although its own original slate is only a quarter the size of Netflix's, Amazon. com can boast that its shows won more Emmy awards latest year than its rival.

Netflix is counting on a vast lib of original programming to assistance hold subscribers on board as it faces tougher competition. Amazon, for instance, just started offering its streaming-video service for $9 a month ; previously, you'd to sign up for the company'south 0-a-year Prime service, which includes free shipping from its e-commerce site and other goodies.

Amazon is undercutting Netflix'south monthly price for its most favorite video-streaming plan, as is Hulu, which charges $eight. HBO charges $15 per mo for a video-streaming service it launched latest year to compete against Netflix.

Netflix will test the loyalty of its long-time subscribers following mo when it starts to hike their prices twenty-five percent, following a two-year freeze that kept rates at $8 per month. The expand will hit seventeen million to twenty-two million U. S. subscribers, based on analyst estimates.

Original programming doesn't arrive cheap. The Los Gatos, California, company ended March with $12.three billion committed to Internet streaming rights, nearly double the $5.six billion it spend at the finish of two thousand twelve. Netflix hasn't disclosed how much of that spending has gone toward original series and exclusive movies, but the percentage has been steadily increasing.

The cost of licensing and overseas expansion has whittled Netflix'south profit margins. In its first-quarter results released late Monday, the company said it earned $28 million, or 6 cents per share, on income of nearly $2 billion. Investors, though, are distant more focused the company'south subscriber growth.

So far, the company has delivered. Netflix picked up an extra 6.74 million customers in the first quarter to boost its worldwide audience to 81.5 million subscribers — up from thirty-three million before the first season of "House of Cards." Such gains helped propel Netflix'south share price, which has more than quadrupled since then, creating about $36 billion in shareholder wealth.

But Netflix'south stock price dropped nearly 8 % in extended trading late Monday after the company predicted it'd only add 2.5 million subscribers in the second quarter, including a gain of 500.000 customers in the U. S. The conservative forecast reflected the anticipated loss of some longtime subscribers due to the price increase.

There'south a worrisome history here. In two thousand-eleventh, subscribers fled when Netflix split off its DVD-by-mail operation from its burgeoning streaming business, a shift that hiked prices as much as sixty % for some subscribers.

Netflix lost 3 % of its U. S. subscribers at the time. A similar reaction to following month'south price expand might cost it 510.000 to 660.000 subscribers in the second quarter.

Analysts think a repeat is unlikely. "I don't think you're going to look a lot of people bailing out and running for the exits," said Rosenblatt Securities analyst Martin Pyykkonen — largely because Netflix presently has so many shows you can't discover anywhere else.

That original programming appears to be a major draw for many subscribers. In a recent online survey of 2.500 U. S. adults conducted by Morgan Stanley, forty-five % cited it as a reason to subscribe to Netflix.

HBO, however, still has a enormous advantage over Netflix in terms of prestige. Latest year, HBO won forty-three Emmys, more than any other TV network, while Netflix'south original programs garnered just four — one less than Amazon. com.

READ ALSO
MPs Vow To Tackle Sexual Violence In Schools

MPs Vow To Tackle Sexual Violence In Schools

A parliamentary inquiry is examining ways to reduce sexual assaults and harassment in schools, which campaigners declare is "endemic".

54
DC United 0-1 Toronto FC

DC United 0-1 Toronto FC

Toronto FC, winless since their first game of the season, were looking to kickstart their season. Latest season DC United scored early in their beat to Toronto, this season it was Toronto'south turn, as Sebastian Giovinco keep the ball in the net after only fifty-eight...

65
Apple Pay is presently available in Singapore

Apple Pay is presently available in Singapore

Apple Pay lets customers pay for physical and digital goods using their iPhone, iPad or Apple watch, but it is initially somewhat Ltd in Singapore.

53
Martin Frey: Is this the world'south most adventurous man?

Martin Frey: Is this the world'south most adventurous man?

Number necessity to go it aloneAfter conquering his latest mountain, Frey sought out an action that'd authorize him to comprise his wife and seven-year-old daughter, Lily.

79