Netflix offers $100K per episode to stream new TV shows

December 3, 2010 By Jeffrey Van Camp

Netflix is offering TV studios up to $100,000 per episode to air current season shows on its streaming service.

Netflix wants fresh content and it’s willing to pay to get it. The NY Post reports that Netflix is bypassing TV networks and talking with studios directly about gaining access to new episodes of popular TV shows like Glee. It’s even willing to pay for the luxury: somewhere between $70,000 and $100,000 per episode.

Now a war is breaking out between streaming companies, studios, and broadcast networks. Studios argue that they own streaming rights to in-season shows; broadcast networks disagree, claiming that they own the rights.

“It’s a big source of friction,” one TV executive familiar with discussions told the NYP. “There are no agreements [on control of rights], but I think it will trend toward the networks being in charge of selling in-season in first run, and beyond that, the studio.”

Netflix has been on a hot deal streak. It’s stock is sky high and its subscriber base has exceeded 16 million. Last month the streaming giant made a deal with NBC to add back seasons of its shows to the streaming catalog and new episodes of Saturday Night Live a day after they air. A deal with FilmDistrict for first-run independent movies was also inked this week.

Fear and loathing in Hollywood

Hollywood and broadcast networks are nervous, however, that they’re creating an unstoppable giant. If Netflix gains access to current-season TV shows, it puts the service in direct competition with Hulu Plus, a service three of the broadcast networks–ABC, Fox, NBC–jointly own. Netflix already has an advantage over Hulu Plus in that it is available for far more devices including the three major video game consoles: the Xbox 360, PS3, and Wii. Netflix’s streaming traffic has doubled from last year. It is set to deliver about 300 million streams in 2010.

What do you think about Netflix increasing dominance? Is it good for the industry, good for consumers, or both?

Showing 6 comments

JC at 12:02pm 16th December 2010 I haven't had cable for around a year and use Netflix, Hulu, ESPN3, and broadcast. I have a computer hooked up to my TV which gives me a lot of versatility. I like it a lot, but I feel like when streaming gains more control the prices will go up. I'll enjoy it while it's cheap though! Only reason I like cable is that channel surfing is kind of fun sometimes, but what a waste of time! Netflix is much better.
Sal Manilla at 7:45am 13th December 2010 I think Netflix has completely changed the DVD and streaming market as we know it and will never look back. I was soooo happy to see Blockbuster in $$$$ trouble. That company has screwed it customers for years and years with their late fee BS which they lost in court battle and had to cough up what they kept telling their customers " oh its not us ,its the studios that are making you pay late fees"! Netfilx became the "Giant Slayer" for the dinosaur old school Blockbuster . On the other hand if Nexflix gains total % control of the market and viewers don't be suprised if greed moves into their corner also. Greed in America has become accepted and part of the American way unfortunately . Be thankful for Netflix and also be very very careful of their changes in attitude as they grow!!!!!!!!
bradrichgruber at 3:32am 11th December 2010 I almost love netflix, but if they get can stream these TV shows, it s a done dealing and we'll be getting married next fall.
Robert G at 6:59pm 5th December 2010 NETFLIX ROCKS! It is absolutely the best , most advanced, and AFFORDABE product ever! It is the best and cheapest solution for consumers. Move aside old dinosaurs, Netflix has arrived.
svi at 9:00am 5th December 2010 Oh, yeah. I plan never to buy cable or satellite again. Netflix on the PS3 is like having a film genie.
Loth at 11:00am 4th December 2010 The Industry sells to customers. The Industry has been squeezing customers dry for well over 30 years. The Industry has been getting greedy and sucking customers dry. Along comes Netflix and this little thing called internet streaming. 9.99 a month for Netflix and Free OTA for sports or f$60.00 for basic cable. Which would you choose? I choose the former.