This Day On The Street
Continue to site
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

We're Better TV Viewers When We're Binge Watching

PORTLAND, Ore. (TheStreet) -- Netflix (NFLX - Get Report) and Amazon (AMZN - Get Report) pay a small fortune to stock their streaming libraries, but full seasons and nuanced viewers help those investments pay for themselves.

Netflix makes it incredibly clear just how much its streaming service has riding on content. Of the $6.3 billion in assets it claimed during the second quarter, nearly $1.8 billion lies in its content library. However, of the company's $2.3 billion in liabilities, a whopping $1.86 billion stems from the deals for that content alone. Amazon, meanwhile, hasn't disclosed the terms of many of its biggest content deals, but the acquisition of Time Warner's (TWX - Get Report) HBO programming this year is believed to have cost the company upward of $300 million.

There's a big increase in overhead when Netflix starts producing original content including House Of Cards and Orange Is The New Black or when Amazon thumbs through its pilot shows to pick up Alpha House, Mozart In The Jungle and Transparent, but each service's host of third-party shows only helps it discover what will work in its originals and what won't. Amazon has been streaming HBO's The Sopranos for the last few months and has given viewers a reminder of the peaks and valleys of one of television's most acclaimed series. They see the great moments when Tony Soprano kills a gangster in witness protection while taking his daughter to college, they watch the character profiles of his closest henchmen fill out during a botched execution in the Pine Barrens and they see the show lose its way a bit after he gets shot in the fifth season.

On Netflix, viewers get to watch Breaking Bad's Walter White restart a dead RV in a desert to save the meth business that's paying bills for his cancer treatment, watch the jokes between him and his former pupil disappear as they kill their gangland partners and watch White's complete metamorphosis into a loathsome tyrant by the series' end. They're able to consume it all in minimal sittings, without commercial interruption and with immediate analysis through online reviews and social media. They're able to see the connections that show runners like The Sopranos' David Chase and Breaking Bad's Vince Gillian make, and raise concerns about loose ends and left turns -- like Tony Soprano's out-of-nowhere gambling habit and the unresolved fate of White's wife's other gentleman caller, Ted Beneke.

Having the ability to watch, absorb and obsess over these shows has justifiably changed the way that viewers consume their television. Nearly three in four members streaming the first season of Breaking Bad finished all seven episodes in one session, according to Netflix. With ensuing seasons, the binge-watching rate was higher than 80% of all Netflix viewers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $673.20 -0.01%
AMCX $82.36 -0.54%
NFLX $125.42 -0.02%
TWX $69.95 0.24%
AAPL $119.00 1.00%


Chart of I:DJI
DOW 17,798.49 0.00 0.00%
S&P 500 2,088.22 -1.89 -0.09%
NASDAQ 5,124.94 -2.5850 -0.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs