It was a big bet. Netflix spent $100 million on House of Cards, but it’s already paying off.
About 86% of subscribers say that political drama House Of Cards starring Kevin Spacey makes them less likely to cancel, according to a survey last week conducted by investment firm Cowen and Co.
Only 346 of the 1,229 U.S. consumers surveyed on February 12-13 are Netflix customers, although another 223 are classified as non-subscribers who have access to a Netflix subscription. About 10% of subscribers and those with access to Netflix viewed at least one episode of House Of Cards in the first 12 days after it became available. The average person who tuned in watched six episodes over that period, but 19.4% watched all 13. Viewers were impressed: 36% called the series “exceptional” while 43% deemed it “good.”
Up until this point, it looked as if Netflix would be forced to acquire content and higher and higher prices. Last year, Netflix spent $1.8 billion on content acquisition costs. As content owners continue to realize the value of digital rights, costs for that content have risen.
Now that Netflix has its’ own content with proven value, it might no longer be forced to serve content masters.
I wonder how much current Netflix subscribers would pay per month to just watch House of Cards?
Even if its $2 (I suspect it’s higher), that’s 25% of the base-level subscription plan.
Feb 22, 2013