Watching `House of Cards' Is About to Get Pricier

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April 21 (Bloomberg) -- Mediatech Capital Partners' Porter Bibb and Bloomberg's Cliff Edwards and Jon Erlichman discuss Netlfix's plans to charge new customers $1 to $2 a month more for its online video service, starting later this quarter. They speak with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)


One or two dollars, what is it going to be?

Like they say it depends on the territory.

They say they are raising it across the world for new subscribers.

It will really depend on the market.

I have not said what's going to happen in the u.s.. any concern this could hurt their image question mark when they try to split off the streaming and dvd business, that did not work out well.

Any big changes, that could disrupt a gain in new subscribers.

When they run out the list of reasons, i think you are left with the message they are not concerned about price increases because of the adoption of netflix.

You're looking at a company with over 48 million subscribers around the world will stop they talked about how the adoption markets outside the u.s. has been successful, the netherlands, mexico.

In fact, it was their international subscribers where they had supplies lost a little bit.

I think it is their message that absolutely, we are customer first.

We don't like to shock people, but we are in a good position.

They feel pretty confident that they can get to 90 million subscribers in the u.s.. porter better, managing director of media capital is joining us.

When you look at the numbers and look at the hainan subscribers, the business seems to be doing quite well.

Do you worry about a major change like a price increase?

The major changes going to happen.

You can't worry about it.

You will have to try to fathom what it's going to do to the share price, which is going through the roof as we speak.

Let's talk about original programming.

We got a little more color on house of cards will stop they don't break out the audience numbers.

Why don't they if the audience is as huge as they say?

I think a don't want to give their competitors any ammunition and they want to keep the prices down when they are acquiring these shows.

They say the budgets of acquiring these shows are going up.

On the conference call they said the free trials are driving new subscriptions.

So what is driving them are the originals and they say it's doing extremely well for them.

The original programming is very expensive.

Is this something netflix can sustain long term?

New subscriptions are happening because of original programming.

Reed hastings says the secret sauce is the metrics, which are more extensive and deeper than any other media or content provider has ever dreamed of.

Making original content is harder than even netflix understands.

No one pays attention to the original content that missed and did not draw any crowds.

The first one that they did was a series called "lily hammer." which almost no one saw.

I'm not sure if they can continue to come up with "house of cards was quote or "breaking bad" hits which was blocked off of cable.

The missing numbers are not the original bits.

Those are drawing a lot of attention and yes, they did spend well over $100 million on the first season and almost $200 million on the second season of house of cards will stop but it's the hidden numbers, not the number of viewers, it is what their turn rate is which is approaching 30% by their own customer research.

It is a contingent liability on their off balance sheet with the contracts they have entered into for future content approaching $3 billion.

They will really have to keep this momentum going and keep adding subscribers or they are actually going to hit a wall.

They came out formally against the comcast and time warner merger.

I have a statement they sent -- if the merger is approved, the combined company will pass 50% of rod and and households.

Its dominant enough to be able to capture fees from providers like netflix.

Why come out so strongly against the merger?

I think there are those concerns about what they will have to pay long-term when so much broadband ends up in the hands of one player.

We saw them cut a deal with comcast in anticipation of all this change will stop one of the things said on the call by reed hastings was brian roberts of comcast, nice guy.

That has to be 60% rod band in the hands of one person or one company, he's a pretty nice guy am a but no company should be in that position.

It's a concern because they don't have a lot of power over what they're going to be charged on that.

Jon erlichman and porter bibb, and our own cliff edwards,

This text has been automatically generated. It may not be 100% accurate.


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