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Wednesday, October 15, 2014 12:13:27 PM
Netflix became a victim of its own success. Once content providers saw how popular streaming was becoming, they jacked up the price of their content. Netflix’s success also attracted new competitors to the market (like Amazon), and encouraged existing competitors (like HBO) to invest more in streaming. “The calculus here is simple,” Ulin told me. “There’s lots more competition for viewers. That means it’s harder to get content. And the content you do get costs more.” In the past few years, Netflix has lost thousands of movies as licensing deals expired, and this year it will pay at least three billion dollars for content (much of it on children’s programming and television shows). Though Netflix still streams plenty of great films, no one really thinks of it as a dream video store in the sky anymore. “Netflix used to really emphasize the breadth and depth of its catalogue,” Dan Rayburn, a principal analyst at Frost & Sullivan, told me. “Now it puts a lot more emphasis on its original content.”
http://www.newyorker.com/magazine/2014/10/20/content-discontents
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