Sunday, February 10, 2013
Netflix's House of Cards
Last weekend, Netflix debuted their highly anticipated original series House of Cards. Based on an old BBC series, starring Kevin Spacey and directed by David Fincher, the show certainly has an impressive pedigree and has been garnering mostly positive reviews. From what I've watched so far, it doesn't quite reach the heights of my favorite television shows, but it's on the same playing field, which is pretty impressive for original content from an internet-based company that was predicated solely on repackaging and reselling existing content from other sources. It's a good show, but the most interesting things about the series are the meta-discussions surrounding the way it was produced and released.
Like the way free music streaming services are changing the narrative of that industry, I'm seeing something similar happening with Netflix... and like the music industry, I don't really know where this will end up. Netflix certainly fell on hard times a couple years ago; after a perfectly understandable price hike and the inexplicable Qwikster debacle their stock price plummeted from 300+ to around 60. Since then, it's been more or less ping-ponging up and and down in the 60-140 range, depending on various business events (earnings reports, etc...) and newly licensed content.
Recently, the stock has been rising rapidly, thanks to new content deals with the likes of Disney and Warner Bros., and now because of House of Cards. Perhaps fed up with wrangling the rising cost of streaming content (which are ever rising at a spectacular pace and cutting into Netflix's meager profit margins), Netflix has started to make their own content. Early last year, Netflix launched Lillyhammer to middling reviews and not a lot of fanfare... I have not watched the series (and quite frankly, the previews look like a parody or SNL sketch or something), but it perhaps represented Netflix's dry run for this recent bid for original content. A lot of the interesting things about House of Cards' release were presaged by that previous series.
For instance, the notion of releasing the entire 13 episode run of the first season on day one of release. Netflix has done a lot of research on their customers' viewing habits, observing that people will often mainline old series (or previous seasons of current series like Mad Men or Breaking Bad), watching entire seasons or even several over the course of a few days or weeks. I've wondered about this sort of thing in the past, because this is the way I prefer to consume content. I can never really get into the rhythm of "destination" television, except in very limited scenarios (the only show I watch on a weekly basis at the time it airs is Game of Thrones, because I like the show and the timeslot fits into my schedule). There are some shows that I look forward to every week, but even those usually get stored away on the DVR until I can watch several at once. So what I'm saying here is that this release of all episodes at once is right up my alley, and I'm apparently not alone.
With the lack of physical shelf space or broadcast schedule needed, I suspect this would also lead to shows actually getting to finish their season instead of being canceled after two episodes, which could be an interesting development. On the other hand, what kinds of shows will this produce? Netflix greenlit this series based on a mountain of customer data, not just about how viewers consumed TV series, but also on their response to Kevin Spacey and David Fincher, and probably a hundred other data-points.
And the series does kinda feel like it's built in a lab. Everything is top notch about the show. Great actors, high production value, solid writing, the show is optimized for that binge-watching experience. Is that a good thing? In this case, it seems to be working well enough. But can that sort of data-driven model hold up over time? Of course, that's nothing new in the entertainment industry. Look no further than the whole vampire/zombie resurgence of the past decade or so. But I wonder if Netflix will ever do something that sets the trends, rather than chasing the data.
What does this all mean for the world of streaming? Netflix appears to have stemmed the tide of defecting subscribers, but will they gain new subscribers simply because of their original content? Will this be successful enough for other streaming players to take the same gamble? Will we have Hulu and Amazon series? Will we have to subscribe to 8 different services to keep up with this? Or will Netflix actually license out their original content to the likes of Cable or Network television? Ok, that's probably unlikely, but on the other hand, it could be a big source of revenue and a way to expand their audience.
Will Netflix be able to keep growing thanks to these original content efforts? House of Cards is just the first of several original series being released this year. Will the revived Arrested Development (season 4, coming in May) draw in new subscribers? Or the new Ricky Gervais show? Will any of this allow Netflix to expand their streaming content beyond the laughable movie selection they currently command (seriously, they have a good TV selection, but their movie selection is horrible)? Will we ever get that dream service, a single subscription that will give you access to everything you could ever want to watch? Technologically, this is all possible, but technology won't drive that, and I'm curious if such a thing will ever come to fruition (Netflix or not!) In the meantime, I'm most likely going to finish off House of Cards, which is probably a good thing for Netflix.
Copyright © 1999 - 2012 by Mark Ciocco.