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If Netflix is so successful, why are there not more streaming services?

This is a question I get asked quite a lot and there is really no right answer for this. Mainly no network needs to conform to the ‘norm’ but there are some underlying reasons why a TV network wouldn’t go to a paid streaming service. First things first, though, I need to give you a little back story…don’t worry it will all make sense in the end so stick with me.

So let’s begin with the different ways TV shows get money. When a show comes out initially, they get money from places like:

Merchandise
Licencing
Syndication

But most of all, they make money off ads. The more popular the show the more the network can charge for ads. So how does this affect online streaming services?

Well, firstly online streaming services aren’t going to affect merchandise or licensing. They would still run like normal regardless of the medium. You can still sell toys, t-shirts and even DVDs. You can also sell the licence to show the show on other networks around the world. The next item is syndication, now this isn’t really affected greatly by an online streaming service as you can still sell the rights to the show and allow it to be shown on other networks as well as the streaming service. What it will effect with syndication is that fact that a user won’t wait for an episode when they can just pay for a service and watch it anytime. The main thing that gets affected is ad revenue.

Firstly we are ‘programed’ in a way to expect to see ads on free services, things like YouTube, FTA (free-to-air) TV, Facebook etc. When viewing videos on these sites we expect to see these ads, however, once we get to the paid services like Netflix, Hulu, Stan etc…we don’t expect to see ads. This here is the problem, TV networks need to make sure they are making money off the paid service that makes them more money or at least the same money as the ads on normal TV.

When you think about it, though, having a streaming service for your network does make sense, mainly for older series. Other ways these networks can have a streaming service is sold licences to services like Netflix but like I said, just because services like Netflix is popular doesn’t mean they have to but eventually they will.

Anyway till next time

About Joshua Curci

Joshua Curci
I'm a very open person and a very honest person. You can ask me any question and I will answer it honestly but don't ask a question you don't want to know the answer to. My full name is Joshua Richard Curci and I am currently 22 years old. I love video games and movies and I keep up to date with all the new movies and video games. I also play basketball and I follow the NBA, NFL and AFL. I also love swimming and surfing and try to do both as much as I can. I love making effects tests which you can see on my portfolio page I do most of the videos for fun and not for a client but I only have limited hardware so my ideas don't come out like I envision them. I'm always looking for more projects and ideas ether voluntary or payed work but as I have already stated I have very limited hardware. If you need any info or want to contact me for anything then you can follow me bellow or contact me on my contact page.

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