Who Wins the Original Content War?
Updated from 8:24 a.m. EST April 8, 2014 to include Sesame Street's new video on-demand service, Sesame GO.
NEW YORK (TheStreet) - I spent the better part of the past weekend on my couch "binge watching" Netflix's
The fact that Netflix, among others, has been so successful in creating original content for its subscribers has huge implications in consumers' living rooms, Hollywood, the boardrooms of America's media giants and even in parts of Silicon Valley. The media industry is in a state of flux and it's anybody's guess as to who will be the ultimate winner.
Admittedly, I have not made it through the entire two seasons yet and when I get home tonight, I'll forgo my usual television programming to continue my binge -- again exactly what Netflix wants - where the value of the service is so compelling that I wouldn't dream of cancelling my $8 a month subscription.
Netflix isn't the only company that wants me to binge watch something I can only get through its service. From Amazon
"I think we're headed toward a convergence. The [poster child] of all this is House of Cards on Netflix and the fact that it's gotten consideration and even won some Emmy awards," said Brad Adgate,senior vice president of research at Horizon Media. "The second season became an event for Netflix subscribers and binge viewing. That really set the tone that streaming video is a viable competition to what we would call traditional television. That opened a door for other original series to be streamed online."
"That whole broadcast TV model that's been with us for 50-plus years is slowly going away," he added. "You're seeing the impact. Even the networks are ordering shows without a pilot, which is what Netflix did with House of Cards. The model is changing and it's all being driven by cable and now streaming video."
Even Sesame Street is eyeing potential revenue from an on-demand service. Sesame Workshop, the nonprofit educational organization behind the children's long-standing television show launched a subscription video-on-demand service for $3.99 a month or $29.99 annually where viewers can watch Sesame Street episodes, Sesame Street Classic episodes and Pinky Dinky Doo episodes.