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Old March 8 2012, 10:06 PM   #25
Cookies and Cake
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Location: North America
Re: Netflix may pick up Terra Nova

Temis the Vorta wrote: View Post
Since Netflix is subscription, not ad supported, they need to act less like FOX and more like HBO. If HBO or Showtime wouldn't bother with a show like Terra Nova - and of course they wouldn't, at least without changing it fundamentally to appeal to their own audiences - then it would make no sense for Netflix to do that either.
That's true as far as it goes, but complete similarity doesn't exist because their overhead has a different cost structure. According to this article, HBO splits new subscription fees about 50-50 with the distributors, while Showtime has a different arrangement with distributors. Netflix would have a third arrangement not involving contracts with cable or satellite providers, at least not the same sort of contracts. Since there is distinction in their business models at least at the margin, not everything unattractive to HBO need necessarily be unattractive to Netflix. My guess is they're running the numbers of various scenarios to see whether it's worth the risk.

Also, the productions they've already committed to are different.
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