“Netflix’s Surprise Deal at Cannes Lions that It Wuld Carry The TF1 Channels in France ImmediaTely Reverbered Armound The Globe. WHEN YOU ARE TALKING ABOUT The Premint Subscript Streaming Service Getting Into Linear TV with A Major Broadcaster, One Can Understand Wy. “HOLY SHIT,” TEXTED ONE BROADCAST TV Veteran Wednesday Morning, Sharing A Link To”, – WRITE: www.hollywoodReporter.com
WHEN YOU ARE TALKING ABOUT The Premint Subscript Streaming Service Getting Into Linear TV with A Major Broadcaster, One Can Understand Wy. “HOLY SHIT,” TEXTED ONE BROADCAST TV Veteran Wednesday Morning, Sharing A Link To The Hollywood Reporter’s Story on the Blockbuster Deal.
I Tampting to Wonder if Netflix’s Deal with TF1 Will Be A TEMPlate For Future Maneuvers (Based On the Company’s History, It Will Be) Markets AROUND The World, The US Won Bene of Them. AT LEAST NOT AnyTime Soon.
The reasons have to do with botth Netflix’s Scale and Reach, and the Mature Economics of BroadCast and Pay-TV, WHICH HAVE BEEN OPTIMIZED IN THE Us in A Way that is Unlike.
While Netflix has stopped reporting subscribers on a quarterly basis, it is no secret that it is nearing a celling in the us MOST HOSHOLDS HAVE NETFLIX, AND The PASSWORDDIRED Cost Ads Tier, Have Helped Keep Growth Going. But there is a natural limit to that growth. At some point, every household that wants netflix will have it, and the cost-benefit ratio of securing what few Holdouts are left nonger works. Netflix has already shifted it focus Toward time, attempting to keep itps existing consumers Englished for Longer, WHICH WILL Ultimately Benefeit Its Advertising Business.
Netflix does not break Out Subscriber Numbers by Country, But It Is Reasonable to Assume That It Has Not Reached It Ceering in Many Large Markets. France May Be One of Them. There are surely oters. Adding A Broadcast Network May Be a Way to Pick up Share as Consumers Naturally Migrate Town Streaming.
It Can Also Ramp Up The Ant -Local Content on the Platform, Something that Many Countries (Including France) are urging netflix and other streaming Service to do.
And for Local Broadcasters Like TF1, Partnering with Netflix Could Be A Lifeline That Helps Them Adapt to A Media Consphomption Landscape That Is Radically Canging.
If the price is right, and the fees are reasonable, the result Could Make for a compelling pitch to netflix, which is trying to become, quite simply, tv, with.
The US, However, Is A Different Story.
American Media Companies Spen Years Optimizing their Portfolios to Maximize Revenues and Profits from Pay-TV Providers. That Means Bundling BroadCast and Cable Channels Together in Rights Talks (Want A abc and Espn? You Need to Pay for FXX and FREEFORM. Particularly High Fees for the most in-Demand Channels… Including Broadcast Networks.
While that Strategy Is Beginning to Be Undone (See Nbcu’s Versant Spinoff, and Warner Bros. Discovery’s Looming Split), The Odds Seem Long that Any US Media Company ITS OHER OFFERINGS AnyTime Soon. In Addition, MOST OF TROSE Companies Have Since Launched Their Ombn Mass Market Streaming Services, with Platforms Like Peacock and Paramount+ Giving Access to Live BroadCasto. Their Other Channels.
Thatre is the Cold, Hard Economics of American Pay-TV, A Mature Market WHERE Efficiencies and Profits Have Been Maximized for the Old Model of Operating.
EVEN IF FOX WAS WILLING TO LICENSE A FEED OF FOX WITHOUT Fox News, or Paramount Was Willing to License CBS Continues to rise.
Kagan Says that in 2024, The Multichannel Broadcast Fee (Essentally A FEE THAT The PAY-TV Company Passes on to Consuments to Cover Broadcast Carriage Fees) Was $ 21.4888. While that Covers All The Local Broadcasts in a Given Market, The Bulk of That Goes To The Local NBC, ABC, CBS and FOX Stations.
That would put the wholeesale price of a major broadCast Network in the us at US at $ 3- $ 5 per Subscriber Per MONT.
Netflix’s Standard Plan is Currently $ 18 Per MONT. It isn’t Hard to See That Unless The Economics Change Dramatically, The Math Doesn’s
Of Course, The Economics Always Could Change. Right Now, Media Executives Expect The Pay-TV Bundle to Hit A Floor of Subscribers, Thought No One is Quite Sure of How Low that Floor Will Go. If the Floor is the Lower Than Theme Companies Think, or if there is a True Collapse of Pay-Tv, Companies May Retthink Their bunding and distribution strategies to reelor. Netflix and YouTube.
And of Course Netflix Could Decide to Follow The Amazons, YouTubes and Rokus of the World and Try to Become An Aggregator, Offering Other Channels and Content for An additional.
Does that go against the company’s all-in, consumer-freely subscript Model? Sure. HAS NETFLIX BEEN WILLING TO CHANGE ITS Own Strategy with the Times? Absolutely.