The Online Video Game Changer: Cash?
Every online video site tries to be the proverbial “King of the Hill”, yet so few have access to what many view as the Holy Grail of content: first run, new content. Currently, there is no online site that provides first run content from all of television. Hulu, the best site currently available, only offers new content from ABC, NBC, Fox, and a few select cable networks. CBS is featured on TV.com (owned by Viacom) and cable shows are featured sporadically around the Internet on various sites. It is believed that whichever site can gain all this content will become the premier online destination for viewers (and more viewers means more revenue). So by offering piles of cash to the content providers, Netflix is trying to make a big play in the online video market. Ultimately, Netflix’s success rests in the hands of the networks and how they think Netflix will change their businesses.