Netflix & Content Costs

Andrew Wallenstein describes the tough position Netflix could be in thanks to content deals with CBS and 20th Century Fox: "If CSI: Miami shows up on Netflix anytime soon, it probably won't be because the streaming service asked to carry it. The drama series, which ended its 10-year run on CBS last month, may end up on Netflix when the licensing arm of CBS Corp. wants it there, for licensing fees that are above and beyond the estimated $200 million library content deal they inked last year. Netflix could be on the hook to carry more than 230 episodes of the show, at a cost of hundreds of thousands of dollars for each seg -- no small expense for Netflix, whose content costs are already under scrutiny on Wall Street."