Netflix CEO Calls 'House of Cards' Down Payment on Original Cont - Spokane, North Idaho News & Weather KHQ.com

Netflix CEO Calls 'House of Cards' Down Payment on Original Content

Posted: Updated:
Reed Hastings Reed Hastings

YAHOO.COM - Netflix subscribers don't sign up for original content or specific shows but the overall experience, CEO Reed Hastings told a Morgan Stanley media and technology investor conference Monday. 

"You want to think of House of Cards as a down payment on the potential to build real franchises" over the coming years, he cautioned investors in a session that was webcast. "We don't want you to think that suddenly we are the original-content company."

But the political drama starring Kevin Spacey is Netflix's most-viewed content offering, and original content looks "very promising over five to 10 years," he said. "It could become quite material." Overall, he urged investors to see the success of original-content investments as "a very nice confirmation of the premise that over years we can build something really important as opposed to some inflection point."

Asked about Netflix's international strategy, he said the firm will take a breather in terms of new market launches in the first half of 2013 but continue to focus on Europe. "We'll be ambitious again going forward," Hastings said without disclosing details. "We are growing internationally. We are going to continue to invest."

He said that in each foreign market the company faces competitors, such as Amazon and BSkyB, that have money to spend. But the executive emphasized that pushing for a strong market position is key. "We have somewhat deep pockets" as well, Hastings said. "If you are the one that has gotten to scale, you have a heck of a franchise. So we are pushing hard at that."

He cited the example of Disney's ESPN, which earlier in the day had announced the sale of its U.K. TV channels to telecom giant BT. "ESPN just pulled out of the U.K. because of competition," Hastings said, emphasizing that scale is important even for "a company that really knows what it is doing." 

Those who question his decision to spend on subscriber growth now only need to ask themselves how long the Internet will be a dominant distribution platform, the Netflix CEO said, suggesting that this would be the case for "probably a very long time." 

So his firm has an incentive to invest a lot. "If we invest upfront, that's a very long-term defensible franchise," Hastings said.

The Netflix boss also answered a question Monday about possible extra charges or usage limits that broadband providers like cable operators could require from heavy online video users, including Netflix subscribers.

"There would be a pretty big outcry if they cut access to Netflix," Hastings said. He said that broadband providers charge $40-$60 a month and pay no content fees, making their broadband business very profitable.

  • Most Popular StoriesMost Popular StoriesMore>>

  • INCREDIBLE drone video shows fire destruction over Pateros/Brewster

    INCREDIBLE drone video shows fire destruction over Pateros/Brewster

    Saturday, July 19 2014 3:08 PM EDT2014-07-19 19:08:42 GMT
    KHQ.COM - Chelan HD Productions has given us permission to show this incredible video they shot with a drone surveying the damage done from the Carlton Complex Fire in the areas of Brewster and Pateros. This video is truly jaw dropping and really shows the level of destruction from the fire.>>
    KHQ.COM - Chelan HD Productions has given us permission to show this incredible video they shot with a drone surveying the damage done from the Carlton Complex Fire in the areas of Brewster and Pateros. This video is truly jaw dropping and really shows the level of destruction from the fire.>>
  • 10 Cheapest Houses For Sale In Spokane

    10 Cheapest Houses For Sale In Spokane

    Wednesday, November 27 2013 2:35 AM EST2013-11-27 07:35:08 GMT
    Whether you are in the market for an affordable place to live or are in the business of flipping houses, here are the 10 cheapest homes for sale in Spokane according to AllSpokaneHomes.com.>>
    SPOKANE, Wash. - Whether you are in the market for an affordable place to live or are in the business of flipping houses, here are the 10 cheapest homes for sale in Spokane according to AllSpokaneHomes.com. Yes, they all need some work and some need a lot more than others, but when your mortgage payment is around the $200/month range there's at least something to stay positive about.>>
  • Dozens of buildings burned in Washington wildfire

    Dozens of buildings burned in Washington wildfire

    Friday, July 18 2014 6:08 PM EDT2014-07-18 22:08:11 GMT
    KHQ.COM - The wind-driven fire in north central Washington destroyed as many as 100 buildings - most of them homes - according to Okanogan County Sheriff Frank Rogers. Rogers gave that update Friday morning in his update on the status of the Carlton Complex Fire burning around the communities of Pateros, Twisp and Brewster.>>
    KHQ.COM - The wind-driven fire in north central Washington destroyed as many as 100 buildings - most of them homes - according to Okanogan County Sheriff Frank Rogers. Rogers gave that update Friday morning in his update on the status of the Carlton Complex Fire burning around the communities of Pateros, Twisp and Brewster.>>
  • National NewsMore>>

  • Battle rages in Gaza City

    Battle rages in Gaza City

    Sunday, July 20 2014 2:12 PM EDT2014-07-20 18:12:41 GMT
    GAZA CITY, Gaza Strip (AP) - It's the deadliest day yet of Israel's 3-day-old ground offensive in Gaza. Palestinian health officials say at least 65 people were killed as Israeli troops backed by tanks and warplanes battled Hamas militants in a crowded neighborhood of Gaza City.Thousands have fled the city and dozens of homes were damaged or destroyed. Palestinian health officials put the number of displaced at 35,000.>>
    GAZA CITY, Gaza Strip (AP) - It's the deadliest day yet of Israel's 3-day-old ground offensive in Gaza. Palestinian health officials say at least 65 people were killed as Israeli troops backed by tanks and warplanes battled Hamas militants in a crowded neighborhood of Gaza City.Thousands have fled the city and dozens of homes were damaged or destroyed. Palestinian health officials put the number of displaced at 35,000.>>
  • Feds: Man said he'd blow up London-to-LA plane

    Feds: Man said he'd blow up London-to-LA plane

    Thursday, July 17 2014 12:52 AM EDT2014-07-17 04:52:07 GMT
    LOS ANGELES (AP) - A federal criminal complaint says a passenger on a flight this week from London to Los Angeles threatened to kill flight attendants and blow up the plane.The FBI says 20-year-old Kevin Lee Mosele of Kihei, Hawaii, was charged Tuesday with interfering with a flight crew. He could get 20 years in federal prison if convicted.>>
    LOS ANGELES (AP) - A federal criminal complaint says a passenger on a flight this week from London to Los Angeles threatened to kill flight attendants and blow up the plane.The FBI says 20-year-old Kevin Lee Mosele of Kihei, Hawaii, was charged Tuesday with interfering with a flight crew. He could get 20 years in federal prison if convicted.>>
  • Las Vegas doctor will help girl attacked by pit bull

    Las Vegas doctor will help girl attacked by pit bull

    Monday, June 23 2014 8:58 PM EDT2014-06-24 00:58:54 GMT
    JACKSON, Miss. - A Las Vegas doctor deeply touched by the story of the little girl who was asked to leave KFC because of the scars on her face, has decided to pay it forward. Victoria Wilcher was the victim of a pit bull attack that left her with multiple scars all over her face and only one eye.>>
    JACKSON, Miss. - A Las Vegas doctor deeply touched by the story of the little girl who was asked to leave KFC because of the scars on her face, has decided to pay it forward. Victoria Wilcher was the victim of a pit bull attack that left her with multiple scars all over her face and only one eye.>>