It’s reported that Netflix has 60% of the digital movie market and continues to dominate video streaming despite the recent rise of formidable contenders with the Facebook and Warner Bros. deal, the new Amazon Prime instant video service, and Apple’s iTunes movie store. But to really ensure an edge over the competition, Netflix is now adding original content into its distribution mix.
Netflix has reportedly outbid HBO and AMC for the rights to the David Fincher directed series House of Cards starring Kevin Spacey. This is a big departure from Netflix’s usual approach of streaming older cheaper, content from its partnerships with major networks such as NBC and CBS.
The deal would require Netflix to commit to two seasons with 26 episodes, costing upwards of $100 million. This is a huge bet and a surprising turn considering Netflix’s Red Envelope Entertainment venture shut down in 2008 after an unsuccessful attempt to produce original content with Indie films.
[via The Wrap]