> If this show ends up being the next big thing, will that really convince people who haven't subscribed to Netflix to finally join in?
I think the original content serves more to retain customers than to acquire them.
Netflix's licensing agreements gets them access to libraries of old content, and usually streaming rights to those studios' movie and TV releases only some months after they've come out on disc, so as not to cannibalize the retail disc sale revenue.
They get lots of new content when they sign a new agreement, but they rarely sign new agreements, as they're for hundreds of millions of dollars and last multiple years. In between, the Netflix site looks stagnant to long-time subscribers: few new movies or TV shows in the "new releases" list, with the occasional "new season" tag added to an existing series.
Producing their own content may be the cheapest way to keep the catalog feeling fresh for existing subscribers, since it's unlikely any network is going to license current season TV to them any time soon.
I think the original content serves more to retain customers than to acquire them.
Netflix's licensing agreements gets them access to libraries of old content, and usually streaming rights to those studios' movie and TV releases only some months after they've come out on disc, so as not to cannibalize the retail disc sale revenue.
They get lots of new content when they sign a new agreement, but they rarely sign new agreements, as they're for hundreds of millions of dollars and last multiple years. In between, the Netflix site looks stagnant to long-time subscribers: few new movies or TV shows in the "new releases" list, with the occasional "new season" tag added to an existing series.
Producing their own content may be the cheapest way to keep the catalog feeling fresh for existing subscribers, since it's unlikely any network is going to license current season TV to them any time soon.