A new programming deal shows why Netflix has all the leverage

Tue, 08/20/2024 - 08:55

Characters from — "Breaking Bad's" Walter White, Skyler White, and Walter White Jr., are part of the AMC Collection on Netflix. Will anyone notice the "AMC" part?
Doug Hyun / AMC

Netflix wants you to think of things you see on Netflix as Netflix shows and movies.
The people who license those movies and TV shows wish you thought of them as NBC shows, or Disney movies, or whatever.
A new deal with AMC Networks shows you how hard it is for the media companies to get what they want from Netflix.

Thought experiment: Let's say you run a big TV network.*

And let's say you decide to license some of your TV shows to Netflix.

What happens next?

First, you get a bunch of money, at something close to 100% margin. You've already paid to make these shows, and (hopefully) made some money from them. Now Netflix is paying you again. Great!

What happens next is up for debate.