NBCUniversal got the attention of Hollywood and TV viewers everywhere last week, announcing a five-year deal to take The Office back from Netflix and put it on its own streaming service starting in…
The value of the pact is estimated at $100 million per year, according to those familiar with the terms. So, what exactly is NBCU buying with all of that cash? Not subscribers, technically, given that the company plans to give the streaming service away initially to pay-TV subscribers of Comcast and Sky. The main answer appears to be the opportunity to reinforce its decades-old, still-lucrative advertising business.
“It comes down to core competency,” one digital executive who has business dealings with a wide range of programmers told me. “Media companies have been used to doing certain things extremely well for decades. Now, they have to develop a whole different set of muscles. Algorithms, customer retention. So many things they’re not used to doing. That will likely be a big test.”
Reinforcing previous studies, Hub Research issued a report Wednesday that found 53% of current Netflix subscribers would keep it if it introduced ads but charged $2 less per month. If the company shaved $3 off, 60% would keep it. Ads would prompt 12% to drop the service even with lower prices. The stakes are not small. Traditional TV advertising is still a $70 billion annual business, so every cent that migrates to digital is now seen as desirable by the traditional content purveyors.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Box Office: 'Avengers: Endgame' Won't Overtake 'Avatar' for NowThe superhero pic was rereleased over the weekend with new footage timed to 'Spider-Man: Far From Home' and in a bid to become the top-grossing title of all time THRNews
Read more »
Can ‘Spider-Man: Far From Home’ Rescue Lagging Summer Box Office?After a spell of underperforming sequels, Tom Holland’s friendly neighborhood Spider-Man is swinging by to hopefully salvage the box office. “Spider-Man: Far From Home,” from Sony…
Read more »
Panama's new president takes office, pledges end to corruptionPanama's new President Laurentino 'Nito' Cortizo vowed to curb co...
Read more »
Reddit User Created The Entire Dunder Mifflin Office In MinecraftA 16-year-old from Sweden went viral after his Minecraft recreation of 'The Office's' Dunder Mifflin reached Reddit's front page
Read more »