The “Netflix effect” is again in full swing as big-time streaming competitors (NBCUniversal, Disney, Paramount, and Discovery) find merit in striking deals with old content. The Hollywood Reporter wrote that the Netflix method of bringing content to the masses seems to have a revival effect when the streaming giant is granted access to aged content.
More studios are selling the streaming rights for their shows to Netflix to help their IPs gain more popularity.
When NBC’s sitcom, The Office, aired its final episode on May 16th, 2013, a sale of the show’s streaming rights to Netflix was already in order. Just a few years after releasing the show to Netflix, The Office was again making waves among viewers.
Ultimately, the popularity of the aged show rose so significantly, that NBCUniversal struck a deal to buy back rights to stream The Office for around $500 million.
It seems Netflix has a lock on a few streaming tactics that other channels simply haven’t yet mastered. Given the long history and development of the streamer, Netflix has had significantly more time to fine tune its algorithms and build rapport with subscribers than other more recent platforms.
By selling old shows to Netflix, everyone wins.
This longstanding history in the business has placed Netflix in a commanding role in the industry, and other streaming services have taken notice. Not long ago, there was an ongoing battle to hoard content, making certain shows only available on one streamer, but the battlefield has now shifted.
Other platforms like Disney+ and Max have found a way to utilize the popularity of the streaming giant for their own gains. For instance, NBCUniversal sold the rights to stream their hit show Suits (which ended in 2019) to Netflix, and the show quickly found new life.
Netflix And Suits
Now, the company and the creator of Suits, Aaron Korsh, are developing a companion series that will air exclusively on Peacock. The hope is that the new series will drive those who viewed Suits on Netflix to explore what Peacock has to offer.
While the streaming battle once focused on taking the Netflix model and building a newer and more relevant version, other streaming services have begun to derive new ways to capitalize off of the popularity of the industry giant. It clearly pays to pave the way.
By selling old shows to Netflix, everyone wins. Netflix has the right formula to revive the shows and place them in the center of pop culture, while the original streamer is free to develop exclusive follow-ups.
Other streamers are also free to buy shows back after Netflix revamps their popularity with the public. Overall, it seems to be a pretty impressive opportunity for profits in every direction.
Netflix is no stranger to setting trends, either. This year, in particular, has been a big money-maker for the company, helped by their crack down on password sharing.
To the dismay of many viewers, the crackdown provided a notable boost in subscriptions to the streaming service. It’s likely that other streaming services will follow suit in the coming years, once again proving Netflix to be a powerful streaming trendsetter in the world.