THE Lowly Peon

GigaOM: Netflix's House of Cards

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18 March 2011, 12:14am

Netflix is betting big on a new original series starring Kevin Spacey. They haven't won the bid yet, but apparently they're throwing down big bucks both to have independence from the networks and also to prove that internet video will not cause the death of quality content.

By bidding on an original show like House of Cards, Netflix is sending a message to the cable networks and distributors: “If you won’t license shows to us, we’ll cut our own deals for the shows you want.” In the same way that a shrewd end-around with indie studios gave it access to an Oscar-winning movie before anyone one else, Netflix is going to TV producers directly and cutting out the networks they’ve previously depended on to fund their shows. And, as Kafka points out, that could give it some leverage as it strikes future network deals.