Break-up Averted

Well, it seems Netflix will not be divorcing itself. Last month, Netflix announced that it’s Streaming and DVD-by-mail service would be separating, and that the DVD’s would change it’s name to Qwikster. But it seems the two have found a way to work out their differences and stay together. For the sake of the kids.

This is good news for anyone whose a subscriber, myself for example. I really like the service, and was not looking forward to needing to visit two websites and two queues. Now nothing will change.

There are a few other tidbits in that news article of note. For one, Netflix is apparently in negotiations to produce original programming, noteably new episodes of Arrested Development. Now, I never could get into the show, but many people clearly love it.

If this ends up being successful, this could mark the (final) start of a new way of developing and delivering television shows. Or saving good shows that the major networks discard without giving a chance. No more repeats of the tragic demise of Firefly.

One business model I’ve thought might work well for something like Netflix, is that it produces limited run series, say 3-6 episodes. Make these episodes available to every subscriber. The decide which shows get a second season based on people who actually watch all of the episodes. Make all original subsequent full season (10-22 episodes) of original shows available for an additional $2-5/month for subscribers.  The price is low enough that if you find shows from the free samples that you like, its worth paying for.

If shows are good, people will watch all of the episodes, especially if there are only a handful. Then you get actual data about what shows people like, instead of the distorted nielson ratings networks use.

I have no idea if that could ever work financially, as I have no idea how much money it takes to produce a quality show and how much that would actually bring in. It might have to be a pay per show option. Say, $5/month gives you access to 4 original shows of your choice, and you can switch which shows every 6 months.  All of the original shows appear on regular Netflix, but a year after they finish their original run.

I’m just rambling now. What was the main point? Oh yeah, Netflix not becoming Qwikster = good.