Apr 05, 2020
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Netflix’s Sarandos Says Video Service Eyeing Film Projects

Netflix Inc. (NFLX), the world’s largest streaming subscription service, is evaluating potential film projects and suggested its programming budget would increase if the company expands into original movies.

“We’re keeping our minds wide open in terms of what these projects will look like,” Ted Sarandos, chief content officer, said today at “The Business of Entertainment,” an event in Los Angeles sponsored by Bloomberg and the Tribeca Film Festival.

Netflix has :no short list yet for movies” and is “completely open-minded about the size and scale and scope of what they could be,” Sarandos said.

First-run films would add a dimension to Netflix’s formula of offering viewers a mix of original series, with a library of movies and reruns. The company is racing to get and keep customers ahead of competitors including Amazon.com Inc., the largest online retailer, and Hulu LLC. In the third quarter, Los Gatos, California-based Netflix passed Time Warner Inc.’s HBO in paid U.S. subscribers and reached a total of 31.1 million.

“Tens of millions of people watch Netflix shows,” Sarandos said. “I really look at this as an organic shift relative to how we’re going to spend the money.”

Analysts have suggested the company may raise its $7.99-a-month subscriber price to help pay rising licensing costs for movies and TV shows. Chief Executive Officer Reed Hastings has said he doesn’t favor that.

Growth Plan

The company has implemented a three-pronged growth plan, focusing on exclusive content, wider access to the Netflix service and expansion outside the U.S.

On the content side, Sarandos has focused on obtaining exclusive first access to TV reruns and movies from Walt Disney Co. (DIS) and DreamWorks Animation SKG Inc. (DWA), while expanding into original shows that include the women’s prison drama “Orange Is the New Black” and “House of Cards,” the political thriller with Kevin Spacey.

“It’s monumental to have such established brands to do something out of the box,” Sarandos said.

As part of its strategy, Netflix posts entire series of shows online for viewers to consume as they wish. That frees the company from the scheduling headaches traditional television networks contend with, he said.

“For ‘House of Cards’ to be successful, I didn’t have to find a night to put it on,” Sarandos said. “There’s a real art there that we don’t have to be great at.”

Creative Types

That freedom makes Netflix more appealing to the film and TV industry’s creative communities, he said. Netflix offers its service on computers, tablets, smartphones and Web-connected television sets.

“Television is displacing movies in terms of the culture,” Sarandos said.

The company is also seeking to expand access to the service to cable set-top boxes and media-streaming devices, such as TiVo Inc. (TIVO)’s Roamio and Google Inc.’s Chromecast.

In addition, Hastings is pouring profit from U.S. DVD and streaming operations into international growth, with a goal of reaching several hundred million subscribers globally within an unspecified period of time.

Netflix rose 2.5 percent to $337.60 at the close in New York. The shares have more than tripled this year and rank as second-best performer in the Standard & Poor’s 500 Index for 2013 behind Best Buy Co.

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Front Page, Industry News

Netflix’s Sarandos Says Video Service Eyeing Film Projects

Netflix Inc. (NFLX), the world’s largest streaming subscription service, is evaluating potential film projects and suggested its programming budget would increase if the company expands into original movies.

“We’re keeping our minds wide open in terms of what these projects will look like,” Ted Sarandos, chief content officer, said today at “The Business of Entertainment,” an event in Los Angeles sponsored by Bloomberg and the Tribeca Film Festival.

Netflix has :no short list yet for movies” and is “completely open-minded about the size and scale and scope of what they could be,” Sarandos said.

First-run films would add a dimension to Netflix’s formula of offering viewers a mix of original series, with a library of movies and reruns. The company is racing to get and keep customers ahead of competitors including Amazon.com Inc., the largest online retailer, and Hulu LLC. In the third quarter, Los Gatos, California-based Netflix passed Time Warner Inc.’s HBO in paid U.S. subscribers and reached a total of 31.1 million.

“Tens of millions of people watch Netflix shows,” Sarandos said. “I really look at this as an organic shift relative to how we’re going to spend the money.”

Analysts have suggested the company may raise its $7.99-a-month subscriber price to help pay rising licensing costs for movies and TV shows. Chief Executive Officer Reed Hastings has said he doesn’t favor that.

Growth Plan

The company has implemented a three-pronged growth plan, focusing on exclusive content, wider access to the Netflix service and expansion outside the U.S.

On the content side, Sarandos has focused on obtaining exclusive first access to TV reruns and movies from Walt Disney Co. (DIS) and DreamWorks Animation SKG Inc. (DWA), while expanding into original shows that include the women’s prison drama “Orange Is the New Black” and “House of Cards,” the political thriller with Kevin Spacey.

“It’s monumental to have such established brands to do something out of the box,” Sarandos said.

As part of its strategy, Netflix posts entire series of shows online for viewers to consume as they wish. That frees the company from the scheduling headaches traditional television networks contend with, he said.

“For ‘House of Cards’ to be successful, I didn’t have to find a night to put it on,” Sarandos said. “There’s a real art there that we don’t have to be great at.”

Creative Types

That freedom makes Netflix more appealing to the film and TV industry’s creative communities, he said. Netflix offers its service on computers, tablets, smartphones and Web-connected television sets.

“Television is displacing movies in terms of the culture,” Sarandos said.

The company is also seeking to expand access to the service to cable set-top boxes and media-streaming devices, such as TiVo Inc. (TIVO)’s Roamio and Google Inc.’s Chromecast.

In addition, Hastings is pouring profit from U.S. DVD and streaming operations into international growth, with a goal of reaching several hundred million subscribers globally within an unspecified period of time.

Netflix rose 2.5 percent to $337.60 at the close in New York. The shares have more than tripled this year and rank as second-best performer in the Standard & Poor’s 500 Index for 2013 behind Best Buy Co.

Source:

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Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Front Page, Industry News

Netflix’s Sarandos Says Video Service Eyeing Film Projects

Netflix Inc. (NFLX), the world’s largest streaming subscription service, is evaluating potential film projects and suggested its programming budget would increase if the company expands into original movies.

“We’re keeping our minds wide open in terms of what these projects will look like,” Ted Sarandos, chief content officer, said today at “The Business of Entertainment,” an event in Los Angeles sponsored by Bloomberg and the Tribeca Film Festival.

Netflix has :no short list yet for movies” and is “completely open-minded about the size and scale and scope of what they could be,” Sarandos said.

First-run films would add a dimension to Netflix’s formula of offering viewers a mix of original series, with a library of movies and reruns. The company is racing to get and keep customers ahead of competitors including Amazon.com Inc., the largest online retailer, and Hulu LLC. In the third quarter, Los Gatos, California-based Netflix passed Time Warner Inc.’s HBO in paid U.S. subscribers and reached a total of 31.1 million.

“Tens of millions of people watch Netflix shows,” Sarandos said. “I really look at this as an organic shift relative to how we’re going to spend the money.”

Analysts have suggested the company may raise its $7.99-a-month subscriber price to help pay rising licensing costs for movies and TV shows. Chief Executive Officer Reed Hastings has said he doesn’t favor that.

Growth Plan

The company has implemented a three-pronged growth plan, focusing on exclusive content, wider access to the Netflix service and expansion outside the U.S.

On the content side, Sarandos has focused on obtaining exclusive first access to TV reruns and movies from Walt Disney Co. (DIS) and DreamWorks Animation SKG Inc. (DWA), while expanding into original shows that include the women’s prison drama “Orange Is the New Black” and “House of Cards,” the political thriller with Kevin Spacey.

“It’s monumental to have such established brands to do something out of the box,” Sarandos said.

As part of its strategy, Netflix posts entire series of shows online for viewers to consume as they wish. That frees the company from the scheduling headaches traditional television networks contend with, he said.

“For ‘House of Cards’ to be successful, I didn’t have to find a night to put it on,” Sarandos said. “There’s a real art there that we don’t have to be great at.”

Creative Types

That freedom makes Netflix more appealing to the film and TV industry’s creative communities, he said. Netflix offers its service on computers, tablets, smartphones and Web-connected television sets.

“Television is displacing movies in terms of the culture,” Sarandos said.

The company is also seeking to expand access to the service to cable set-top boxes and media-streaming devices, such as TiVo Inc. (TIVO)’s Roamio and Google Inc.’s Chromecast.

In addition, Hastings is pouring profit from U.S. DVD and streaming operations into international growth, with a goal of reaching several hundred million subscribers globally within an unspecified period of time.

Netflix rose 2.5 percent to $337.60 at the close in New York. The shares have more than tripled this year and rank as second-best performer in the Standard & Poor’s 500 Index for 2013 behind Best Buy Co.

Source:

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Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

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