Netflix May Drop SquarePants
Netflix has recently announced that they are planning to let their broad, multi-year deals with Nickelodeon, BET, and MTV expire next month. While the online streaming service company clarified that they will continue to license some of the cabler’s shows, it will start to focus more on selective licensing arrangements in order to carry only the programs that will work best for its subscribers.
In a recent letter to shareholders, Netflix CEO Reed Hastings cited their recent deal with Warner Bros. Television as the perfect example of their newer, more handpicked approach to programming:
“Many of our earliest deals were with networks and cable networks and included some shows that have not proven successful,” Hastings wrote. He further added that cable networks often hold back the most popular shows for as long as possible to keep cable and satellite distributors happy. “By dealing directly with producers of TV shows, we are better positioned to pick just those shows that we believe will work best, and secure rights that may be otherwise blocked by TV carriage and transmission deals.”
“With all the recently added fresh programming from Disney, Cartoon Network, Hasbro’s The Hub and DreamWorks Animation, we have a great kids offering,” Hastings added.