Netflix App & TV Shows 2014: NBC's 'The Blacklist' Purchased By Online Streaming Giant
Netflix, the online TV and movie streaming giant, appears to be making the biggest risks of its existence with the purchase of NBC's hit TV show "The Blacklist," and the yet-to-be aired "Gotham" from Fox.
Last week, Netflix bought a whopping $2 million per episode for Season 1 of "The Blacklist." And it has gained the first unaired season of "Gotham."
What makes these shows such hot property for Netflix? It has to do with viewership, making a partnership with Sony Pictures TV, providing more access and TV content that Netflix can offer, and a clear race to be the first company to air a new show. This is not Netflix's first time at securing a TV deal, but it is something to take notice enough for you to stop binge watching your favorite TV show.
Sony Pictures TV -- which owns "The Blacklist" -- first tested the show off market from TV in March, Netflix took the bait first. Amazon and Hulu have joint syndication deals with cable networks, but Netflix appears to be the pioneer in SVOD business, Deadline reported.
SVOD is "Subscription Video on Demand," a type of Video on Demand system -- VOD -- that allows its subscribers to have unlimited access to any specific video content for a regularly charged fee. This is what Netflix is offering. Since Netflix has started this trend -- and especially the art of "binge watching" -- the company wants to maintain that kind of reputation.
Netflix was the first to get the "New Girl" TV series for a deal worth almost $1 million. Other networks such as TBS and MTV had to wait a year to get it next, Deadline reported. The Netflix and Sony TV deal however gives Sony the right to also sell it to cable and broadcast syndication. "The Blacklist" is already available on the streaming giant.
Paying $2 million for a series is pretty big. Two million dollars per episode is said to be the largest amount of money paid for any off-network series by Netflix, or by any other streaming company, Deadline reported. The highest that Netflix has ever paid was for AMC's "The Walking Dead," $1.35 million per episode.
"The Blacklist" was a big winner for NBC. It averaged high viewership every week with 4.4 ratings in adults 18-49, and 15.4 million viewers, Entertainment Weekly reported. It was only behind ABC's "Grey's Anatomy" by a fraction in terms of viewership. The show has already secured a 22-episode renewal for its second season.
But what about "Gotham?" What makes that show so special? Well, for one thing, Warner Bros. has granted Netflix multi-territory rights, and not a country-by-country deal. This deal limits Netflix's reach, but it does make it again the first streaming company to air "Gotham" Season 1, Variety reported.
"In this era of new business models and expanding windows, this is an unprecedented deal for our company and our industry," Jeffrey R. Schlesinger, President of Warner Bros. Worldwide Television Distribution, said via a statement.
With Netflix's SVOD rights, it could drive up the value of the series and in turn Netflix. With this financial interest, it could rival Hulu and Amazon even more, Variety reported. But Warner Bros. TV can still retain the rights to sell SVOD rights in other territories that Netflix has not ventured into.
Netflix has seen the future, and they want to be in it. For the streaming giant, series such as "The Blacklist" and "Gotham" expand their international reach and they gain more viewers.
"'Gotham' is the most anticipated new series of the fall season and we are thrilled to offer it to our members around the world," Ted Sarandos, chief content officer at Netflix, said in a statement. "The Batman origin story is sure to have massive global appeal so it is fitting that, along with Warner Television, we have created a new model for distributing a show that international and domestic audiences will love," Variety reported.
"Gotham" is yet to premiere on Fox on Sept. 22. It explores the origin stories of characters within the Batman universe such as The Penguin and a young James Gordon -- Commissioner Gordon in the Batman comics. The show stars Ben McKenzie and Jada Pinkett Smith, among others, Variety reported.
Netflix has 50 million subscribers across 40 countries.
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