With the meteoric rise of Netflix and the shift to cyberspace television set imminent , it seems like a foregone conclusion that other television electronic web should be streaming shows online . More people are watching their shows online anyway – in the last quarter of 2014 program television set viewership set down 4 pct , while online video rose 60 percent [ source : Ramachandran ] . Networks that do n’t cater to the online market place viewers are belong to be leave in the rubble . So why not give the people what they require and cash in on all of that untapped advertising revenue ?
Which brings us to the real issue – licensing fees . television networksdon’t actually own the content they provide , they give for the privilege of airing them . For example , a internet like NBC airs " The Voice , " which was produce by Mark Burnett . NBC pays Burnett and his production companionship for the right field to broadcast " The Voice " and deal the advertising around the show . Other germ of revenue ( like DVD sales ) actually go to the company that have the show , which means that they desire to negociate their licensing contract as favorably as possible .
Allowing a connection to stream their content can , on the one bridge player , mean more viewers , but it can also think switch off off other potential sources of tax revenue , so a show ’s producer need to ensure that they ’re receive the best possible trade . tally online streaming to the licensing slew drives up the price of the license to compensate , and the issue is a confusing jumble of negotiations and counter - negotiations that can often kill a deal .
Licensing agreements are also mostly for a limited amount of time , which is whyNetflix , in spite of its popularity , still does n’t have all the shows you need . Companies that own the rights to movies and television show can negotiate higher licensing fee when they cognise there ’s more demand . Older show are loosely cheaper , but there ’s a reason why Netflix is streaming " Star Trek : enterprisingness " but not " The Simpsons " or " Seinfeld . " Even a hugely successful company like Netflix has to pick and choose appearance to manage its licensing cost , to be able to renegotiate when the license buy the farm .
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