Word is out that Netflix is talking with studios to pick up individual new television episodes and willing to pay $70,000 to $100,000 per show. This is according to a report by the New York Post and as VentureBeat points out, this move will put Netflix in direct competition with Hulu.
As Netflix looks to beef up its TV offerings another interesting battle is brewing between the studios creating the television shows and the television networks that distribute the shows.
With Netflix ready to put its money where its mouth is — and a host of rivals such as Apple and Google’s YouTube also in the hunt — a war is breaking out over who controls streaming rights to current episodes.
The studios that supply the networks with shows argue they own the streaming rights to in-season shows. But the broadcast networks that make a profit from repeats — and stand to lose audiences, ad dollars and syndication revenue if viewers can see those same episodes on Netflix — argue they control the rights.
“It’s a big source of friction,” said one TV executive familiar with discussions. “There are no agreements [on control of rights], but I think it will trend toward the networks being in charge of selling in-season in first run, and beyond that, the studio.”