As just about anyone with an internet connection knows, Netflix is in the process of reviving the much-mourned comedy series Arrested Development, and will be airing the first new episodes of the show in seven years in early 2013. Are we witnessing the creation of a new business model for the streaming movie business?
Netflix will make all of the new AD episodes available at the same time, which will no doubt have many fans engaging in “binge viewing” in which they will watch some or all of the episodes in one marathon session.
Binge viewing, while great for fans, is a concern in the industry when it comes to DVR viewing. Vince Gilligan, creator of hit series Breaking Bad, has the following to say about the activity:
“It’s wonderful, but I do see the worry — this is a business, it’s show business and if there’s no money to be made, then this wonderful job I have and other jobs like it are going to dry up. So we should all be interested in how they monetize this stuff. It’s wonderful when people binge-watch the show — I say have at it — but I do see the companies, not just ours, the various companies concerned that if you’re binge-watching on a DVR, you’re skipping all the commercials.
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And if the guys who buy the commercials realize that all their commercials are being skipped, they’re going to stop buying commercials.
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It may not be surprising then that Netflix, which charges a monthly subscription fee in lieu of airing commercials, may be looked upon more favorably in the future by a Hollywood desperate to monetize its product in an increasingly fractured industry.
As the line between television and web entertainment continues to blur, where do you think the industry is heading next?
[via GigaOM]
I guess it will end up like everything else, either cost more while it’s new or spread out so you have to subscribe longer, they could also start showing newer shows or originals with unskippable ads, there’s a variety of things I’m sure they are doing research on
I am going to sit tight and see what happens here. I think it will go the way most things are going. It will cost to much to keep up. And the price of NetFlix will go way up. And that could be a down fall for NetFlix. Are they will spread it out over a long time. ( And that will be the way they go I bet).
To keep cost in line. I can see maybe $12.00 even $16.00 a month for the online set up. IF, and I mean IF! They have all kinds of TV shows and Movies. And CC on them. (Closed Caption). Yes you need CC, Closed Caption on the TV shows and Movies for the Hard Of Hearing. If NetFlix keeps it up as they are doing.. And adding more shows and movies with CC on them. It will mean millions in the bank for them.. As millions of hard of hearing people will come to NetFlix and watch Movies and TV shows.. And kiss the Cable TV good Bye! I have!
SO it’s ok for Netflix to charge subscription fees and justify ad-free TV, but when Dish tries to do it, they get sued? How is this possible? I love my “binge-viewing” days, as I can use my Hopper DVR to skip the ads on my Prime Time Anytime recordings. I’m not that into AD, but for the shows I DO love, it’s great! I work a ton of hours for Dish, ad time is at a premium in my house; when I use the Auto Hop on my Hopper, I can shave about half the time off when I watch a DVR. I get to watch more, and I end up a little saner having not had to watch endless amounts of ED ads!