Wednesday, March 16, 2011

Netflix: The Next Content Creation Giant

If you are like me, then you can’t imagine how you lived life before Netflix. Netflix has become one of the largest content delivery systems in existence and Sandvine, a network company, released a study that claimed that 20% of internet bandwidth is taken up by people using Netflix during primetime hours.

Gizmodo recently broke a story stating that Netflix has sunk $100 million into a new series titled House of Cards. It will star Kevin Spacey and be directed by David Fincher, the same guy that brought us Fight Club and The Social Network. This story, if it is true, marks the first time that Netflix has taken a role as not just a deliverer of content but as a creator of content. The biggest obstacle to the growth of Netflix has always been getting the content companies on board with allowing use of their content. The library available for streaming is a tiny fraction of what is available as mail order dvds. If House of Cards ends up being successful and Netflix becomes a major content producer, the giant TV networks could have even more to fear from Netflix. I personally am very excited to see Netflix’s library expand. However, if the model for content changes, and we see Netflix both creating content and delivering it, Netflix will have a major strangle hold on the entertainment business and even a possible monopoly. Either way this is a big move for Netflix and I will be adding House of Cards to my instant queue as soon as possible.

What do you think about Netflix joining the content creation game? Does this mean more good content available for streaming or does it mark the beginning of the Netflix’s monopoly over everything we watch? Make sure to let us know in the comments.

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