HBO- ification of Netflix

HBO-IFICATION OF NETFLIX

BY JD CROOK AND JOHN HADDEN

HOUSE OF CARDSNew original programming only offered on NetflixBoasts big names like

• Kevin Spacey • The Usual Suspects,

American Beauty, 21, Se7en

• Director David Fincher• Social Network, Fight Club,

Curious Case of Benjamin Button, Se7en

Cost 100 million to make

WHY ORIGINAL PROGRAMMINGOnly need 520,000 Subscribers to cover costs

• Only a small percentage of their current 33 million subscribers

Currently planning to roll out at least 5 new shows a yearBlockbuster and Amazon are currently investing millions in new competition for NetflixYouTube and Hulu have OCCan’t afford not to differentiate

BINGE VIEWINGReleasing all 13 episodes at onceNo more waiting a week to find out what happens next

New way to watch TVNo more “Just Tuning In” dumbing down of content

QUALITY OF ORIGINAL CONTENTWorthless unless “it’s good”Arrested Development Coming Soon

Metacritic 76/100IMDB User Score of 9/10

• Fight club got 8.9• Titanic got 7.6

DISCUSSION QUESTIONSDo you think original content will work to maintain customer base for Netflix? Increase base?

Thoughts on Binge Viewing?

How do you think competitors will respond?

Will anyone go subscribe to Netflix just for original programming?