Netflix Is Making The Studios Very, Very Nervous

Oh yes.A  Very nervous.A  Very nervous indeed, kids.A  It’s a downright terrifying experience.

See, Netflix represents a serious player in the game these days.A  Every year, they buy two hundred and forty million dollars worth of product from the studios, to turn around and rent it out to the legions of subscribers that Netflix carries on its balance sheet.

Two hundred and forty million bucks is a lot for even a studio to walk away from.A  But Netflix is also representing a serious problem for the studios in their streaming plans.A  See, Netflix is making deals with movie channels to stream content.A  They’ve made a deal with Starz to show Disney and Sony films streamign on their own network.

And that’s got Disney and Sony freaked out six ways from Sunday.A  See, the last thing studios want is to lose track of their rights, and the Starz / Netflix deal is an end run around the studios.A  But the studios only slightly less want to lose the patently massive business that Netflix represents.

So the studios are extremely nervous.A  How do they resolve this dilemma?

We’ll find out.