Netflix was originally created to be a DVD rental website. It wasn’t until 2007 that it became the streaming website we are familiar with today. In 2013, Netflix broke into the original production business with smash hit “House of Cards.”
At the end of September, though, you will no longer be able to watch some very popular titles on Netflix such as “The Hunger Games: Catching Fire, “Transformers: Age of Extinction” ,”The Wolf of Wall Street”, and “World War Z”. This is because Netflix has just ended their deal with movie provider, Epix.
Netflix made its original deal with Epix back in 2010 for a reported $1 billion dollars in licensing fees. Originally, Netflix had exclusive streaming rights to these films, but in 2012 Amazon also signed a deal with Epix. Despite losing its deal with Netflix, Epix is not taking a substantial hit because Hulu has just signed a multi-year deal with the company. As a result, Hulu will be offering many of the films Netflix has lost.
Why would Netflix take away your favorite films? To give you more of its stellar original content. Netflix is aiming to improve its exclusivity.
“Our focus has shifted to provide great movies and TV series for our members that are exclusive to Netflix,” said Ted Sarandos, head of content acquistion for Netflix. The company is striving to be more unique as its competition grows. It has already had extreme success with many of its original series, such as, “Orange is the New Black,” “Hemlock Grove,” and “House of Cards” Netflix’s original series have overall received incredibly positive feedback. Netflix original shows received 34 Emmy Award nominations spanning across 10 different shows this year. While competition such as Amazon and Hulu also produce original content they have not had the same level of success as Netflix’s original shows. Netflix also provides exclusive continuations of shows that had been previously cancelled on cable. Examples include, “Arrested Development,” “Trailer Park Boys,” “Star Wars: The Clone Wars,” and “The Killing.”
Netflix is able to decipher what viewers want to watch through a process of data collection. So they can create original content that will appeal to fans’ favorite and the widest array of viewers. The data collection is also why you can easily see “Top Picks” recommended just for you.
Although dissolving the deal with Epix is risky, Netflix’s popularity is widely due to risk taking. Although we may be losing some popular movies, we are gaining even more original content that, given Netflix’s track record, should be amazing and unique.