Netflix’s Three-Pronged Approach to Content Acquisition
Netflix’s acquisition of the hit show “Mad Men” has everyone looking at their content acquisition model.
The way that Netflix has built its content library is reminiscent of early cable networks, which relied almost entirely on syndicated rerun TV shows and older films to appeal to viewers. In recent years, led by the development of original programming on the part of basic cable networks like FX, USA and AMC, we’re encountering what could be a golden era of cable TV –- and a sign of things to come for Netflix.
Netflix will likely continue to build a content mix that has some variation of deep long-tail content, newer popular hits and exclusive access to original programming. That last piece is vital, and will be the key to Netflix being able to control its own destiny, rather than relying on others for scripted programming. It will also help set it apart from other me-too streaming services that might appear.