There is no doubt in the fact that Netflix Inc. is currently on a bit of spending spree. A couple of months ago, the company announced to double its investments in order to double its portfolio of original programming content in the coming times. It is believed that the streaming giant will be releasing 31 new and existing original content in 2016. This is where it is focused at the moment to invest. But during the planning of expanding in India, it announced to expand in more than just one country.
Netflix’s expansion in most parts of the world was scheduled this year. However it was not expected that the streaming giant would expand in all of those countries in one day. This is now done and dusted. What concerns the analysts most is whether the streaming service provider is in the TV business or in the movie business. Analysts are not only asking Netflix officials this question but Amazon’s Prime Now Video is working on the same business model as well; more or less. Both parties actually call themselves as a TV service but they are mostly occupied in movie business as well.
Netflix came up with several hits in both types last year and Amazon put up a good show as well to compete the market leader. News regarding the deal which has circulated out of the blue is actually confounding for several reasons. Basically it is not really about the money obtained through festivals but rather the consumers who are actually buying them.
Apart from this, Netflix is on a spending spree as it has already shelled out good amount of money on several narrative films. If independent cinema is concerned then this is very good news however the question remains aren’t both companies actually a TV?
It has been noted by the analysts that both firms are quite involved in spending heavy amount to win some awards and this is the strategy which is working successfully for them. When Netflix began its business as an online video content service provider, it launched its first ever original show which was a political drama named House of Cards. The series won the company several nominations at Emmys and Golden Globe Awards as well as it won Golden Globe for each of its lead in the series.
After House of Cards, the next popular TV series was Orange is the New Black which won Emmys as well. On the other hand, Amazon has fewer original TV series programming but its very first which was based on a transgender comedy was a success. The series was known as Transparent and it won Emmys as well as a Golden Globe. One way or another, both parties have been splashing cash to get the desired content which would help in boosting their businesses.
This was all acceptable until it was TV business. Netflix suddenly made a jump into movie business as well which concerned analysts regarding its intention. To be precise, these streaming platforms came in to work on a business model same as that of HBO however they guaranteed to bring improvisation. HBO is definitely TV and analysts believe that Netflix and Amazon are television as well regardless their push in the movie business.