Netflix CEO Calls 'House of Cards' Down Payment on Original Content
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
"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
Thursday, December 5 2013 9:19 PM EST2013-12-06 02:19:22 GMT
UPDATE: On Thursday two people were arrested after a high speed chase. It ended in the area of 13th & Lindeke near Hwy. 195.>>
UPDATE: On Thursday two people were arrested after a high speed chase. It ended in the area of 13th & Lindeke near Hwy. 195. Spokane County Sheriff's Deputies tell KHQ that the male driver rammed at least 2 patrol vehicles before being taken into custody. >>>SEND BREAKING NEWS PHOTOS TO PIX@KHQ.COM| >>
Friday, December 6 2013 2:18 PM EST2013-12-06 19:18:21 GMT
KHQ.COM - We all know that passwords protect our personal accounts and information. >>
KHQ.COM - We all know that passwords protect our personal accounts and information. However it's important to make sure that your password is unique and difficult to prevent people and software programs from figuring it out.>>
Tuesday afternoon the North Idaho Violent Crimes Task Force arrested 22-year-old Michael Anthony Sanchez in connection with the robbery of the Dominos Pizza that happened in Hayden back on November 15th. In a press release issued Thursday afternoon, the Kootenai County Sheriff's Office did not elaborate on details of the arrest.>>