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TV Networks Adapting to the Netflix Threat

Photo of a woman, watching TV
Sean Fang Mon, 16/11/2015 - 22:00

With over 70 million subscribers already, Netflix and other streaming platforms looks set to be the most dangerous threat yet to the dominance of network and cable TV. Just last week, Time Warner warned that they may have to reconsider licensing content to Netflix, and it appears that some of Time Warner's peers are also worrying about the shift towards streaming.

Disney, for example, is now asking Netflix to add a promo featuring the logo for the Disney owned ABC network on shows owned by the company, including the show 'How to Get Away with Murder'. Netflix had previously been extremely resistant to allowing the identification of a show's original broadcast network, but with increasing competition from the likes of Hulu and Amazon, Netflix has little option but to give in to Disney's demand, or face losing the content to a rival.

On their own broadcast channels, the TV networks are also changing in order to better compete with Netflix. A recent Bloomberg article noted that media companies including Time Warner, 21st Century Fox and Viacom have started cutting back on commercials. They're doing this to better compete with the ad-free Netflix and the optionally ad-free Hulu, in an attempt to appeal to younger viewers.

Regardless of what actions networks are taking, it appears that most of them now realise they have to change the way they work with, and against, Netflix in the increasing streaming dominated market place.

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