Netflix's first-quarter earnings, released today, revealed there's one area it has no interest in competing in: live TV.
As Netflix invests more money into creating original content and acquiring the rights to popular series and films, competitors like Hulu and YouTube are partnering up with different networks to bring a live TV streaming option to their subscribers. Hulu launched its live streaming service for less than $40 while YouTube’s will cost $35. Both will include options for subscribers to watch live TV from a variety of networks, while Amazon has plans to wade into the live sporting events market.
Netflix, on the other hand, has no plans to do either. In the company’s release, the network specifically called out the rising trend of live TV streaming and confirmed it wasn’t in the company’s best interests to go down similar paths.
“We don’t think it will have much of an impact on us as Netflix is largely complementary to pay TV packages,” the report read. “Our focus also is on on-demand, commercial free viewing rather than live, ad-supported programming.
“Additionally, investors ask us about Amazon’s move into NFL football. That is not a strategy that we think is smart for us since we believe we can earn more viewing and satisfaction from spending that money on movies and TV shows.”
Netflix announced last year that it was going to invest $6 billion into developing original series and movies with the goal to make about 50 percent of its content original. The company is moving most of its production to California, investing billions more.
Netflix also confirmed that it had added even more subscribers to its database, moving closer to hitting that coveted 100 million subscribers worldwide. Revenue, however, did fall, but Netflix executives said it was an expected drop because operating costs had increased this year.