Update: It’s a done deal.
Earlier: Now it’s getting really interesting. Netflix is in talks to buy a remake of the British TV series “House of Cards” starring Kevin Spacey and director David Fincher (The Social Network). To date, Netflix has just licensed existing programming, but negotiating for original programming puts it head-to-head with the likes of HBO.
Typically, networks buy pilots, but Netflix wants to buy two seasons right off the bat, for as much as a $100 million, reports Deadline.com. (Although a Reuters source says that number is too high.)
Regardless of the price, if the deal happens, it could make big waves in the TV industry, as a two-season commitment is unheard of — producers/actors would gravitate toward deals that give their shows the time to make an impact, instead of getting yanked off the air due to low initial ratings. There’s also the “decoupling” of a TV show from the network/channel. “Once entities like Netflix can acquire programs—without having to be ‘programmers’—that dynamic could melt away. You no longer have to fit a show to a channel, you just have to fit it to an audience,” writes Time.com’s James Poniewozik.
And more interesting to us, Netflix is working on deep Facebook integration, which would power recommendations not only from your viewing behavior, but what your friends are watching. As TiVo has taught us, that will likely boost consumption even more.
A new industry survey found that Netflix owns 61% of the digital movie business, with second place going to Comcast with just 8%. That helps explain why a Goldman Sachs analyst upgraded Netflix stock to a “buy” and a price target of $300 (it was last trading at 214). Very interesting times.
