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Netflix will focus on homegrown shows following Arrested Development success

House of Cards also a 'tremendous asset'
Tue Jul 23 2013, 13:04
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TELEVISION AND MOVIES ON DEMAND SERVICE Netflix has published its latest financial results, showing a gain in subscribers.

The firm talked about a period in which it released its exclusive series of the cult sitcom Arrested Development and the prison drama Orange is the New Black.

A live video interview posted by the firm makes you wonder how it is successful in the media market. The video put the low into low budget and on occasion you can hear the noise that a volume button makes when it is turned up.

Netflix CEO Reed Hastings appeared in the video with CFO David Wells and CCO Ted Sarandos. In it they answered questions from the financial and media industry press that were funneled through a couple of interviewers.

Hastings countered criticisms about the format for the investors meeting by saying that he would let them decide once it was over.

Net adds or new subscribers have been high, according to Hastings, and he said Arrested Development and other original content like House of Cards are likely to turn into real franchises and "tremendous assets". Hastings said that he doesn't consider churn, but does check net additions every day.

Arrested Development added "a little rise" but is not particularly significant, he added. He said that Arrested Development is "part of the network mix".

The firm apparently was not keen to put too much emphasis on Arrested Development, and Hastings said that it is a good thing to work with a show that has an existing fanbase.

More chatworthy were the fully home grown shows, and he mentioned expecting House of Cards to have a series four.

Fourth quarter margins are expected to decline "dramatically", but the firm believes people are becoming more confident in its ability to create original programming. Orange is the New Black, for example, had as strong a launch as any of the other original shows.

The firm is not announcing actual viewer numbers for separate shows, but suggested that if second series are approved then the shows are popular. Orange is the New Black was commissioned for a second series before it even hit the content network.

Netflix has 30 million domestic US subscribers and eight million international members. Hasting said that it will be "pretty unlikely" for the firm to increase its prices over the next 12 months. µ

 

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