This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Who Wins the Original Content War?

Stocks in this article: NFLX AMZN YHOO MSFT

Updated from 8:24 a.m. EST April 8, 2014 to include Sesame Street's new video on-demand service, Sesame GO.

NEW YORK (TheStreet) - I spent the better part of the past weekend on my couch "binge watching" Netflix's (NFLX) House of Cards -- the hugely successful, Emmy-winning original series launched by the streaming service in early 2013. It was one of the reasons I decided to recently pony up for a monthly subscription. I may be late to watching two seasons of House of Cards, but to Netflix, that doesn't matter. At 44 million members and growing, I'm the kind of customer Netflix is looking to appeal to by launching more original series.

The fact that Netflix, among others, has been so successful in creating original content for its subscribers has huge implications in consumers' living rooms, Hollywood, the boardrooms of America's media giants and even in parts of Silicon Valley. The media industry is in a state of flux and it's anybody's guess as to who will be the ultimate winner.

Admittedly, I have not made it through the entire two seasons yet and when I get home tonight, I'll forgo my usual television programming to continue my binge -- again exactly what Netflix wants - where the value of the service is so compelling that I wouldn't dream of cancelling my $8 a month subscription.

Netflix isn't the only company that wants me to binge watch something I can only get through its service. From Amazon (AMZN), Hulu and Yahoo! (YHOO) to even Microsoft's (MSFT) Xbox, a host of companies are getting into the original content game, further rocking the already teetering traditional cable television industry. By answering consumer demand for television programming when they want it (on-demand) and how they want it (via their laptops, tablets, iPhones and yes, even their TVs), streaming services are eyeing the dollar signs whether in subscriptions or advertising, by providing a new way to give consumers what they want. The stakes are incredibly high.

"I think we're headed toward a convergence. The [poster child] of all this is House of Cards on Netflix and the fact that it's gotten consideration and even won some Emmy awards," said Brad Adgate,senior vice president of research at Horizon Media. "The second season became an event for Netflix subscribers and binge viewing. That really set the tone that streaming video is a viable competition to what we would call traditional television. That opened a door for other original series to be streamed online."

"That whole broadcast TV model that's been with us for 50-plus years is slowly going away," he added. "You're seeing the impact. Even the networks are ordering shows without a pilot, which is what Netflix did with House of Cards. The model is changing and it's all being driven by cable and now streaming video."

Even Sesame Street is eyeing potential revenue from an on-demand service. Sesame Workshop, the nonprofit educational organization behind the children's long-standing television show launched a subscription video-on-demand service for $3.99 a month or $29.99 annually where viewers can watch Sesame Street episodes, Sesame Street Classic episodes and Pinky Dinky Doo episodes.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs