Netflix Exec Explains How Online Streaming Helps Cable Networks

Jul 19, 2012  •  Post A Comment

A high-ranking Netflix executive says the online-streaming service is helping cable companies and networks by building their audiences through the airing of old episodes, according to The Hollywood Reporter’s Hollywood, Esq.

The company’s chief content officer, Ted Sarandos, cited AMC’s "Mad Men" as an example, saying Netflix helped introduce the program to a wider audience.

"Then, miraculously, a million more people showed up to watch new episodes when they premiered,” Sarandos said. He spoke at a breakfast event sponsored by The Hollywood Reporter.

"We are faced with increasingly aggressive cable operators who want to do more deals for less money and who try to block us,” he added. “[I]n return for having built the ratings, AMC gets into a fight with cable operators [and satellite service Dish Network] because they sell to Netflix.”

Every new innovation in television, such as pay TV and VOD, has helped expand the audience for TV shows, Sarandos said.

He added that Netflix will continue to be aggressive in adding TV shows and movies that otherwise might be bought by HBO, Showtime or Starz. “We’re actively pursuing every pay TV deal,” he said, according to the story.

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