Netflix streaming content not getting better anytime soon
We’ve all noticed how weak Netflix’s streaming content selection has been lately and it looks like it’s not going to be getting better anytime soon. With content providers such as HBO and Showtime refusing to offer up their content through fear of losing subscribers to their own premium channels, it’s getting harder and harder to come by that quality content for their library. Losing their deal with Starz was also a significant blow to Netflix, as that deal is what kept them stocked up with reasonably recent films.
As it stands right now Netflix is spending $4 billion on licensing fees for the next few years and CEO Reed Hastings foresees them spending billions more. They are currently working on developing original content starting off with “Lilyhammer” which you can watch now, “House of Cards” which is being produced by David Fincher and stars Kevin Spacey, and have made a deal to revive the much loved show “Arrested Development”. While this is a good effort, it’s not going to be enough to keep people subscribed.
The other problem is that the content providers still willing to provide content want much, much more money now that they see how successful Netflix has been. The original Starz deal had Netflix paying $30 million per year, but when it came time to renegotiate, Starz demanded $300 million annually, which Netflix was unwilling to pay. Netflix may be able to get more content for their streaming library, but that would likely require them to raise their rates, which is something I seriously doubt they are willing to do after the major backlash from the 60% price hike a while back. Also, I don’t think anyone would want to pay more right now with the way their streaming library looks.
The need the price hike to pay for the content, but they need the content to justify the price hike. It’s quite the pickle. And even if they can manage to make this work for a short time, what’s to keep the content providers from demanding EVEN MORE for the content the next time, starting the whole cycle over again. With no clear way to get the content people want to see in the streaming library, Netflix may be in some real trouble.