Netflix has faced a lot of ups and downs in recent months and is often viewed by studios as “the service that killed their cash cow named DVD,” Mobiledia reports.
However, a new report from IHS predicts online video viewing will surpass DVD consumption, taking over 57 percent of all movie watching in 2012. The transition suggests that studios may want to reconsider their aversion to Netflix, at least for TV.
Recent Nielsen ratings found that shows like “How I Met Your Mother” and “Mad Men” saw a sizable boost in ratings after having been available on Netflix. “How I Met Your Mother” is in its seventh season, so a jump in ratings is typically rare.
“Netflix’s ability to increase the ratings of shows that have been on for years makes it much more attractive for studios to strike licensing deals with the company. A show with higher ratings makes the program much more valuable to networks, putting more money into studios’ pockets,” the article states.
“Netflix is not raking in the money for studios the way DVDs once did, but the number of people flocking to it and similar services is going up, while the number of people buying movies at their local retailers is falling,” Mobiledia reports. “Consumers’ rising interest in watching movies online makes it clear that studios will not be able to cling to DVD and Blu-ray sales forever. At some point they’ll at least have to consider the question, ‘Is Netflix the answer?'”
No Comments Yet
You can be the first to comment!
Leave a comment
You must be logged in to post a comment.