Studios have begun softening their stance on licensing content to Netflix after years of holding back on sending beloved movies and TV shows to the streaming giant due to the threat of competition with their own streaming platforms. Disney, Warner Bros. Discovery, Paramount, and other studios are now engaging in agreements to license content to Netflix in exchange for much-needed financial support. Netflix is also benefiting from a wider availability for licensing content as other studios look for additional revenue streams to bolster their streaming services.
For years, Netflix had been trying to get its hands on HBO content, who steadfastly refused to license to Netflix. However, the tides changed recently when HBO decided to sell the rights to Netflix. This acquisition brings a massive library to Netflix, resurrecting shows like “Six Feet Under” and “Suits” and brings in a “massive” uptick in viewing. On the face of it, Netflix doesn’t anticipate returning the favor as they don’t have a division for licensing original series nor any reason to set one up.
While the amount of licensed content on the service is growing after a slowdown, content from other studios never completely went away. According to Netflix, the top 10 most-watched movie list for a one-week period ending Dec. 10 includes four films from Universal Pictures alone, bringing in much-needed new content to the favorites like “The Crown,” “Wednesday” and “The Diplomat.” The company said that from January to June, 45 percent of all viewing on the service came from licensed shows and movies, highlighting the immense financial necessity for the studios.
The trend shift seems to be making financial sense, even if studios are facing gargantuan financial investments to create new content to gain subscriptions. As a result, Disney will start sending a number of shows from its catalog to Netflix, including “This Is Us,” “How I Met Your Mother,” “Prison Break” and several editions of ESPN’s sports documentary series “30 for 30.” The popular 2000s-era ABC hit “Lost” will also be sent to Netflix next year.
Jeremy Zimmer, the chief executive of the United Talent Agency, described this turnaround as a “financial necessity,” marking the increased willingness of traditional media companies to license things again. By licensing their content, the studios can generate money while creating more viewing opportunities for the content.
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