ByLily Masco, writer at Creators.co
"It's kind of fun to do the impossible." -Walt Disney
Lily Masco

There's no shame in having a safety net. While it may not be your first choice, it's something constantly lingering in the back of your mind that you really want. Just a little longer and you'll both have your moment, today is just not the day. We've all been there...

"I promise I'll be back for you," you say. Then, out of nowhere, the rug is pulled out from underneath you as you notice you have missed your chance. You thought this was the best relationship ever, but the moment is gone forever with no shot at redemption.

My friends, that hole in your stomach, that lump in your throat... That's what it feels like when Netflix removes something you've been meaning to watch.

You've Invested So Much Time Into Netflix & Chill, Why Would It Ever Hurt You Like This?

Netflix/Giphy
Netflix/Giphy

First off, it's important to know that it's not you, it's Netflix. Just kidding, there's someone else involved entirely (i.e. that B*tch in Legal called Licensing).

Ever heard of out with the old and in with the new? While Netflix needs to make room for new movies and TV shows each month, there is more to the reason behind their unexplained cruelty of erasing all your memories together. Truly, it's nothing personal.

Here's The Key To Our Little Netflix's Heart (We Can Share!)

The Next Web
The Next Web

Whether it be a movie, an entire TV series or merely a season or episode, the offer to stream videos is administered by particular distribution rights with the content providers. These content providers are basically whoever owns the rights to stream.

Usually this refers to production studios in regards to movies (Time Warner, Sony, Walt Disney...) and channels in regards to TV shows (The CW, HBO, ABC...). In other words, it comes down to licensing deals.

The agreements that Netflix engages in with these content providers has precise clauses regarding the various types of medium they can distribute on, such as online streaming or DVDs.

These Agreements Expire (It's Okay, The Honeymoon Phase Was Dying Down Anyways...)

These deals can take on all sorts of forms depending on the type of content, but there are always time limitations on their validity. While some content can be available for longer periods of time, others have tighter windows in which Netflix is allowed to stream their content.

For example, some shows can only be available on Netflix after they have been off the air for a certain amount of time. Similarly, for our soulmate to stream particular movies, Netflix would have to wait for the film in question to no longer appear in theaters. This way, box office numbers aren't negatively affected.

Likewise, Netflix may also have to wait a designated length of time for the film to be released on DVD as to not compete with the production's profits in that area. While the content providers want to profit from Netflix, they still need to ensure that it does not conflict with their own methods of release.

How Come Some Content Loves Us Forever?

Netflix
Netflix

You might be wondering why certain shows seem to be on Netflix forever. Well, there are a few possible explanations for this. It could be as simple as the agreement having a lengthy duration. Another option is if the contract was renewed after termination.

If the content has shown tremendous success and potential, Netflix will try it's best to renew the deal in order to keep its viewers happy. (And to make more money, of course.) A third reason is if the content is a Netflix Original, in which case they own it, so negotiating terms becomes a less complicated process.

Following HBO's model, a growing percentage of Netflix's budget (around 5-15%) will be directed toward licensing exclusive or original content, such as Jessica Jones, Daredevil or House of Cards.

So Who Is The Competition? We Want Names!

Reed Hastings/Business Insider
Reed Hastings/Business Insider

Many content providers are extremely expensive when it comes to legally streaming their content. Networks, such as Amazon Prime or Hulu, bid on licensing rights for streaming. Earning exclusive rights to streaming is worth a much higher bid. Bring it on!

In the streaming market, Netflix's greatest rivals, both real and potential, consist of Amazon, Apple, Microsoft's Xbox, Verizon, Google, and most of all, HBO. HBO not only competes for consumer spending, but more and more for the rights to premium content as well. Time Warner's premium network's streaming business, HBO Go, poses an even greater threat.

In an interview with Ad Age, Netflix co-founder and CEO Reed Hastings admitted:

"The competitor we fear most is HBO Go. They have a lot of content and a gilded brand. HBO is becoming more Netflix-like and we are becoming more HBO-like. HBO and Netflix both spend between $1 billion and $2 billion on content a year. If you are not willing to spend at those levels, it is going to be pretty hard to compete with us or with HBO."

What On Earth Would Ever Persuade Anyone To Leave Netflix?

Netflix
Netflix

There are numerous reasons as to why it may not work out. Sometimes something as simple as complicated negotiations can convince a company to leave. For example, in September 2012, Netflix lost nearly 800 hours worth of content from A&E Network. Another example is the following statement made by CEO of Starz, LLC, Chris Albrect:

"Starz Entertainment has ended contract renewal negotiations with Netflix. When the agreement expires on February 28, 2012, Starz will cease to distribute its content on the Netflix streaming platform. This decision is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content. With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business."

The Number One Problem In This Relationship? Money.

NowStreamingPod
NowStreamingPod

Usually it's either the provider who demands more money and Netflix refuses, or Netflix wants to bargain the price down and the provider won't budge. The latter would probably be the case if Netflix notices that a show does not have much success.

In this case, Netflix may not even attempt to negotiate a lower price, so they'll dump the show instead. It can go both ways, as the provider can choose not to keep allowing Netflix to stream their content for any number of reasons. This could be something as stupid as a price increase in music rights.

We Can Get Through This!

The Odyssey Online
The Odyssey Online

Don't worry guys, we have a solution to know when Netflix plans to betray you next. It's even better than a rebound. With our help, you can prepare for the break-up in advance and even buy ice cream for the occasion. Popcorn and Raisinets too, obvs!

Find out what new movies and TV shows will appear on Netflix this June.

Digital Trends
Digital Trends

What TV Show Or Movie Would You Like To See On Netflix Next?

Sources: Twitter, PR Newswire, Ad Age


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