Submitted by acohill on Tue, 12/13/2011 - 17:26
Netflix, despite their clumsy handling of price changes, is not stupid. Somewhere along the way, they noticed they could pay outsized royalty fees to the studios every time someone streamed a TV show, or they could just produce their own TV shows and KEEP ALL THE MONEY.
Netflix has cut a deal with Fox to restart the cult favorite TV show Arrested Development, which has been off the air for almost five years. Fox is certainly getting a cut of the profits, but it is surely much less than if Netflix was not involved in financing the venture.
I talked to someone recently who was worried about the complexity of set top boxes needed for some IP TV services. The set top box is going the way of the dodo, and that's good news, because the boxes are a pain in the neck for both customers and IP TV providers.
The whole TV model is collapsing faster than even I imagined, and the cable companies don't have a strategy for saving their business.
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