Dirk Knemeyer

On Netflix’s foray into original content

On Netflix’s foray into original content, March 22, 2011

A short comment contextualizing the prediction could go right here

Last Netflix announced they have greenlit two seasons of a new Kevin Spacey-David Fincher show, “House of Cards”. Based on a British series of the same name, reportedly is funded over 100 million dollars in the deal. This is significant as it makes Netflix openly diversifying from their role as a content distributor to potentially become a content creator, is a bit of a risky opening salvo as Netflix has purchased lots of expensive episodes of a show they haven’t even seen a pilot of. This is a deal that none of their more experienced would have taken. Still, Netflix has seemed like a bit of a clay pigeon for years, serving as a market niche while waiting for the big players to take over video-on-demand while quietly reducing them to a niche business. Now Netflix is stepping up into the crowded and competitive world of content creation. It gives them leverage, it may give them new growth, but it also makes them ever more threatening for the sharks. Good for Netflix to step up and fight for their future, let’s see how this experiment turns out.