Netflix (NFLX) In Talks for Original Content; Could Seriously Hamper Competition
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Netflix (Nasdaq: NFLX) shares are showing strength today, following reports that the Los Gatos, CA-based video rental service is in talks to get its own original TV series.
An addition of an original series would elevate Netflix to a new level, competing with the likes of Time Warner's (NYSE: TWX) HBO, and Liberty Starz Group (Nasdaq: LSTZA), among others.
The series, expected to be based on British miniseries "House of Cards," will star Kevin Spacey and be directed by David Fincher, according to the Wall Street Journal.
Deadline.com said that NEtflix will pay about $100 million for 26 episodes, though someone familiar with the matter says that Netflix will pay much less than that.
Netflix has made some moves to score bigger deals lately, moving away from relying on older movie and TV content. The last deal was with Epix and worth $1 billion over five-years for Internet rights to TV shows and films.
And further moves by Netflix into original content and newer programming could seriously damper any hopes of recovery for other content providers. Just yesterday, data from NPD group reported that 61% of movies downloaded and viewed in January and February came from Netflix, outpacing second-place finisher Comcast's (Nasdaq: CMCSA) 8% share by multiples.
NFLX is up 1.8% at the open today.
An addition of an original series would elevate Netflix to a new level, competing with the likes of Time Warner's (NYSE: TWX) HBO, and Liberty Starz Group (Nasdaq: LSTZA), among others.
The series, expected to be based on British miniseries "House of Cards," will star Kevin Spacey and be directed by David Fincher, according to the Wall Street Journal.
Deadline.com said that NEtflix will pay about $100 million for 26 episodes, though someone familiar with the matter says that Netflix will pay much less than that.
Netflix has made some moves to score bigger deals lately, moving away from relying on older movie and TV content. The last deal was with Epix and worth $1 billion over five-years for Internet rights to TV shows and films.
And further moves by Netflix into original content and newer programming could seriously damper any hopes of recovery for other content providers. Just yesterday, data from NPD group reported that 61% of movies downloaded and viewed in January and February came from Netflix, outpacing second-place finisher Comcast's (Nasdaq: CMCSA) 8% share by multiples.
NFLX is up 1.8% at the open today.
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