Netflix, Inc. (NASDAQ:NFLX) may soon stream the miniseries of around 10 episodes after these series are released in theatres. A proposal was brought to Netflix in which the online video streaming company may get the content (movie serial) shortly after it is released in theaters, according to Business Insider.
Miniseries may not be a strategic fit for Netflix
Miniseries were common before televisions started airing more lengthy series. People used to visit the theater to watch these episodes, which used to be one or two hours long. These movie serials involved low production costs compared to movies.
Movie studios will apparently create these mini-series and release them in theaters every two months or so, says the proposal. The proposal looks interesting for Netflix, but may not be a strategic fit due to a host of reasons. The concept varies from the binge model of content consumption that Netflix is following in respect to its original series like House of Cards and Orange Is The New Black.
Cost and revenue concerns
Chief content officer of Netflix, Inc. (NASDAQ:NFLX), Ted Sarandos said earlier in February that users now prefer to watch bundle of episodes at a time rather than spreading them over weeks. The executive added that a premium quality show, which requires more time to be released, may not be right for consumers who want to see many episodes at a stretch.
Cost is also an issue. Though the company has a history of spending sufficiently for quality, it will need to go beyond $4 million per episode, which it invests now for its original shows, as the large number of the theater audience will also come to Netflix to watch the miniseries.
Revenue from the serial will be divided between ticket sales at theaters and from the subscription of new customers “attracted by the new content,” which raises the investment expected of Netflix by too much. Such high investment may not be able to justify the return Netflix craves.
In separate news, Netflix, Inc. (NASDAQ:NFLX) has also entered into a partnership with Disney to stream four TV series based on Marvel superheroes, which will be spun into a movie about the superhero group “The Defenders” similar to The Avengers but for the small screen.