NEW YORK ( TheStreet) -- According to multiple sources close to the situation, at least three major premium networks passed on the original series Sony (SNE - Get Report) sold to Netflix (NFLX - Get Report) earlier this week.
Sony approached CBS' (CBS - Get Report) Showtime Networks, Time Warner's (TWX - Get Report) Home Box Office and AMC Networks (AMCX - Get Report) with the as-yet-unnamed psychological thriller from the creators of the defunct FX program Damages, but all three turned down the offer.
But that's only the beginning of the story. The details reinforce why investors as well as observers of the often-euphoric Netflix story the media spins shouldn't believe everything they read.
Across the board, the media -- from financial outlets to television and entertainment reporters -- portray the Netflix/Sony deal as a coup for Netflix. A major get. Here's this Internet-only television network that, unprecedentedly, teams up with a major Hollywood studio so early in its original programming foray.Netflix's VP of Original Content, Cindy Holland tells us:
We were spellbound after hearing Todd, Glenn and Daniel's pitch, and knew Netflix was the perfect home for this suspenseful family drama that is going to have viewers on the edge of their seats. Their work on 'Damages' was truly ahead of its time and we're proud to be bringing our viewers this upcoming series.Right, when the ratings suck ( Damages' numbers tanked with each year FX kept the show on the air before it moved to DirecTV (DTV)), just go with the the show was ahead of its time line. However, it is telling that Sony, after shopping Damages around, had to settle on a deal with DirecTV because that bares a not-so-ironic resemblance to what I understand went down with this new series Netflix decided to order. I have learned that Sony is nearing the end of a larger deal with the Damages' co-creators. To salvage what has been something other than a success, the studio pitched this new show. Not only did many of the major players pass on it, but, independent of one another, at least two told me that the pitch they received wasn't very good. In fact, in their eyes, the concept wasn't worthy of a pilot, let alone the 13-episode season Netflix ordered. The 13-episode season Sony was able to secure with Netflix after, for all intents and purposes, everybody else said no. So when you read the quote from Holland or the following one from Sony Pictures President of Programming Jamie Erlicht remember that when major companies write press releases, the purpose of the press release is to spin everything positive, not mentioning of course, the not-so-flattering behind the scenes buildup.
The guys worked so hard to come up with the right idea after the success of Damages. It took almost a year to fully develop the pitch and their patience paid off with the incredible reaction in the community, especially at Netflix, the perfect home for this show.That's Erlicht's PR blurb. And it's exactly what Netflix is overpaying for. As one top Hollywood executive put it, "Netflix (overpays for content) with respect to whom they can get a press release picked up."
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.