One thing that rarely gets thought about as we are laying on our couch watching the many shows Netflix gives us access to, is how Netflix “gets” the shows and movies it is able to show. According to Investopedia, Netflix is constantly negotiating their license deals with TV shows, networks, and filmmakers. Basically, Netflix has licensing agreements where they establish rules that determine whether Netflix has access to stream all seasons of their shows (or just one or two) for one, three, or five years. Once that licensing agreement duration ends, Netflix can continue the agreement or even drop the show if the viewer interest isn’t as high as Netflix wants it to be.
For example, I watched the first fifteen minutes of Saving Private Ryan a couple months ago. I wanted to finish it, so I got on Netflix and it was gone! What?! How? Of course when I finally did get around to watching it, it was gone. Its contract must have been up with Netflix, and the ratings must have not been high enough for Netflix to spend its money on keeping that movie around. They may have even took my fifteen minutes of ‘watching it and stopping’ as me not liking it.
- How much does each show/movie cost Netflix?
Well every show varies. For example, the Full Series of “Lost” was $45 million and “Scrubs” was $26 million. In 2018, Netflix is expected to exceed $6 billion on renewing and obtaining license deals. – Syd