This segment of Rob Long's essential show business commentary Martini Shots recently addressed on of the biggest but least discussed points in the discussion of the Netflix business plan.
Most pop culture IP is based on multiple revenue stream models. Toys, syndication rights, physical media (now making something of a comeback with serious fans), and assorted licensing. Netflix appears to have limited itself to locked itself down to one revenue stream.
Keep in mind, investors who are still buying Netflix are betting that it will become the largest and most profitable media company in the world and will do so in the fairly near future, a goal that is even more difficult when you start taking money off the table.
What's more, Netflix appears to have cut deals that allow its partners to cash in on these alternate revenue streams while Netflix bears the bulk of the production and marketing costs. In a sense, it seems like the company is borrowing immense amounts of money to produce elaborate commercials for its competitors' products.
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