Cable Forum - View Single Post

27-04-2016, 15:52

In my first post I commented on how any new service or product would inevitably see initially fast growth but then slow as the market reached its top level - this seems to be happening with Netflix which is predicting slowing subscriber growth:

http://www.bbc.co.uk/news/business-36078925

On another note, Reed Hastings has himself talked of the need to produce more localised content because many international audiences have no interest in watching shows in English.

That will be a significant increase in its production costs and some markets are unlikely to be profitable because the number of potential subscribers won't ever cover the costs of producing enough local language content needed to draw them in.

This of course is why Netflix doesn’t bother to license the uncut UK versions of Hustle and Spooks - the US versions it offers instead lack up to 8 minutes per episode - because every step it takes to address local market demands pushes its overheads up and reduces profitability.

TV isn’t a one-size fits all business - audiences are incredibly diverse and expect tons of content to cater for their needs, with large numbers wanting local, familiar shows starring actors they know and like.

Subscription revenue alone would never fund Netflix running different localised versions in 100 countries and the appeal of English language, mostly US programming is limited because people overwhelmingly want to watch programmes about their police, their politics and their hospitals and not CSI, House of Cards (US) and ER.

Netflix and Amazon can never produce enough programmes with Bradley Walsh or Sarah Lancashire to satisfy UK audiences and replace UK broadcasters as has been predicted repeatedly.

Worse for them, any such shows they did make would have limited appeal outside the UK which runs counter to their business model of securing global rights for all original commissions/purchases.

These services have a limited market which is why shareholders are looking again at Netflix’s future potential growth and some are cashing in now.

27-04-2016, 15:52	#887
TVWatcher Guest Posts: n/a	Re: The future for linear TV channels In my first post I commented on how any new service or product would inevitably see initially fast growth but then slow as the market reached its top level - this seems to be happening with Netflix which is predicting slowing subscriber growth: http://www.bbc.co.uk/news/business-36078925 On another note, Reed Hastings has himself talked of the need to produce more localised content because many international audiences have no interest in watching shows in English. That will be a significant increase in its production costs and some markets are unlikely to be profitable because the number of potential subscribers won't ever cover the costs of producing enough local language content needed to draw them in. This of course is why Netflix doesn’t bother to license the uncut UK versions of Hustle and Spooks - the US versions it offers instead lack up to 8 minutes per episode - because every step it takes to address local market demands pushes its overheads up and reduces profitability. TV isn’t a one-size fits all business - audiences are incredibly diverse and expect tons of content to cater for their needs, with large numbers wanting local, familiar shows starring actors they know and like. Subscription revenue alone would never fund Netflix running different localised versions in 100 countries and the appeal of English language, mostly US programming is limited because people overwhelmingly want to watch programmes about their police, their politics and their hospitals and not CSI, House of Cards (US) and ER. Netflix and Amazon can never produce enough programmes with Bradley Walsh or Sarah Lancashire to satisfy UK audiences and replace UK broadcasters as has been predicted repeatedly. Worse for them, any such shows they did make would have limited appeal outside the UK which runs counter to their business model of securing global rights for all original commissions/purchases. These services have a limited market which is why shareholders are looking again at Netflix’s future potential growth and some are cashing in now.