Videoage International October 2017

10 World October 2017 V I D E O A G E Similarly, Scripps Networks opted not to renew deals giving shows to Netflix, while 21 st Century Fox and Time Warner will reduce sales to the streaming service. According to The Times , the Los Gatos, Calif.-based Netflix “hopes more new [original] shows will capture more subscribers, its primary revenue driver.” The company recently moved its Southern California headquarters into a 14-story building in Hollywood. Plus, the L.A. newspaper reported that Netflix “is also under pressure tokeep spending on new shows as streaming rivals such as Amazon and Hulu expand their own slates of original programming.” The Toronto Star added, “Now Netflix is producing more than 1,000 hours of original programming a year,” and that “films account for about 30 percent of Netflix viewing.” Netflix is investing in expensive projects and, the paper reported, “expects to spend at least $6 billion in content in 2017. Its net cash outflow this year is forecast to grow to $2.5 billion, up from $1.7 billion last year.” Additionally, according to the Times , more than half of the $15.7 billion in Netflix’s streaming content obligations — including commitments to license content — isn’t reflected on its balance sheets, noting that, “In its most recent quarterly filing, the company said it has $8.2 billion in off-balance-sheet obligations. The practice is a common accounting technique but it is also a way for companies to paint a rosier financial picture than may be the case.” However, the Times acknowledged that, for the year, the stock was up nearly 50 percent, closing on Friday, July 28 at $184.04. Famous Quotes “I started to tell Mother Teresa what a pleasure it was to meet her, when the very first words out of her mouth were: ‘How many countries are we in?’ I quickly reviewed the sales in my head and answered ‘22.’ She started shaking her head and said, ‘My last program was sold in over 30 countries!’ ” From the autobiographical book A Kid From Brooklyn , by Larry Gershman “In the movie business, there is another name for August. It’s called ‘dump month.’... August can be something of a cinematic wasteland. It’s the slot where studios often put subpar movies with major stars.” Toronto Star , August 11. 2017 O n July 29, The Los Angeles Times ran an extensive article on Netflix’s finances that in many ways was anticipated in a January 2014 VideoAge article. The Times reported that there is a set of numbers that could spell trouble for Netflix’s rapid growth. The OTT company has accumulated $20.54 billion in long-term debt and obligations in its effort to produce more original content. Apparently, the goal is to increase the portion of self-produced originals to 50 percent of its slate in an effort to own more of the shows on its platform. On a front-cover story in its August 11, 2017 Business Section, the Toronto Star reported that Walt Disney’s break with Netflix increased pressure on the streaming service to produce more of its own programs as other media companies withhold their most valuable TV shows and films. Disney’s agreement with Netflix was signed in 2012 and it will end in 2019. Netflix’s Success On Wall Street And Main Street Is Not Reflected On Balance Sheet (Continued from Page 8) BOOTH R7.H3 BOOTH R7.C15 PERFECT MATCH @ MIPCOM DISTRIBUTION@STUDIO100MEDIA.COM www.studio100media.com | www.m4e.de 3 SEASONS AVAILABLE SEASON 4 IN PRODUCTION SEASON 1 AVAILABLE IN SPRING 2018 GO SCREEN THE EPISODE! SEASON 2 AVAILABLE END OF 2017 SEASON 2 IN PRE-PRODUCTION FOR END OF 2018 © 2017 m4e © & TM Studio 100