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Netflix’s Push to Own Original Series Fuels Race to ‘Out-HBO’ HBO 27 April 2015

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Netflix is raking in the money thanks to continued subscriber growth, but the video streaming site surely isn’t stopping at that sole revenue stream — no matter how high it’s predicted to rise.

The Reed Hastings-run company, which saw its stock skyrocket $87 per share one day after releasing strong Q1 earnings and reporting subscriptions above 62 million, is currently making a key switch to emulate HBO — timed ironically as the premium cable giant is adapting to be more like Netflix with its HBO Now option for cord cutters.

Peter Csathy, CEO of Manatt Digital Media, said that Netflix’s long-standing “HBO fixation” has led directly to its latest move, with which it hopes to evolve from simply licensing its original programming to actually owning the content outright.

“It’s been extremely lucrative for HBO,” Csathy explained of the premium TV model. “It makes sense for [Netflix] — and it’s always better to own all the rights, so that you can then decide what to do with them.”

Read the entire story here.

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