Producers from the hit Showtime drama series Homeland want to conserve their show’s profits by limiting free streaming of past seasons on the online service Hulu. The creative minds behind the show noted if past seasons were available for free on Hulu, they would have a harder time selling them at a profit to other VOD services, such as Netflix.
As millions of viewers in the United States and worldwide cut their cords and shift away from cable television to streaming services like Netflix or Hulu, cable providers aren’t the only ones losing out. Television show producers and creators have said the transition also hurts their shows’ attractiveness and profitability.
The Homeland debate and others like it are centered on the licensing of past seasons. It’s a question that many other successful shows have had to grapple with. Producers, actors and creators do not earn royalties off streaming of past seasons, so they need to sell the rights to those seasons at a high price initially to see a profit.
One communications officer from Netflix noted the company was interested in nabbing exclusive streaming rights to popular shows early in their runs as the rights become more expensive and more difficult to acquire the longer a show has been on air. With more than 65 million subscribers in 50 countries, the streaming of those shows is a billion-dollar enterprise.
Source : IB Times