Chapter 3

Comparing the Brands

Before the Revolution

Watching TV used to be so simple. Tune in, channel surf to see what’s on (or what’s on next) and basically get sucked into the best option at that particular hour, in that time slot. Add a drink and snacks and become a human couch potato. Sheer bliss.

If you’re a Millennial, you’ll add another handheld device (iPhone, iPad, etc.) to be truly happy so you can watch TV and check your Facebook newsfeed and/or text and/or Tweet and/or Facetime and/or Snapchat and/or Instagram. Somewhere along the way, ADD (Attention Deficit Disorder) became ADHD (Attention Deficit Hyperactivity Disorder) that in many ways has become the new normal. It’s not just kids; we all seem to need constant stimulation. We’re addicted to our devices: texts, games, memes, vines, gossip, news and more. Through fear of missing out, ironically we miss being fully present in our lives.

I’m no doctor—nor do I play one on TV!—but I am a parent and educator, and I can tell you: today kids’ brains are wired differently. I won’t deign to say it’s a good or a bad thing. No judgment. It’s just the reality and we won’t know the long-term effects for years, perhaps generations.

Suffice it to say, TV changed because we changed. We communicate differently; we process information and entertainment differently. We’re geniuses when it comes to obtaining facts and stats instantly, at our fingertips. Google has long been a verb. Apps are ubiquitous. There’s no need to navigate by the actual stars when you’ve got GPS. Why tax our brains when our computers and devices have all those gigabytes?

But, let’s briefly travel back in time …

When I was a kid, if you’d asked me to give an overview of the all TV channels, it would have looked like this:

We also had a UHF channel so fuzzy with static it looked like a blizzard, but my brother and I would adjust the rabbit ear antennae to catch a few precious minutes of The Three Stooges and a wrestling show—in Spanish—called Lucha Libre. We felt like renegades, or radio pirates. But the image and sound quality made it nigh impossible to watch for long.

By 1986, my overview would have expanded to include the Fox Broadcasting Network.

Billed as the “Fourth Network,” Fox had anything but an auspicious beginning. It’s natural for an upstart that’s challenging the status quo to falter, but Fox’s initial programs were all dismally rated and summarily yanked off their limited schedule. Fair enough, and par for the course even at the Big 3 Networks. However, Fox’s inaugural program was an unmitigated disaster.

Fox launched at 11pm (Eastern and Pacific time) on October 9, 1986, with The Late Show starring Joan Rivers. Having been Johnny Carson’s permanent guest host for several years, Joan was beloved and extremely popular; her appearances often outperformed Carson’s in the ratings. Rivers felt she was ready to fly on her own, so when Fox called and offered her carte blanche to jump ship, she took the leap. It proved to be a massive career miscalculation on both her part and on the part of the nascent Fox network. In quick succession, Rivers suffered the loss of her mentor, Carson, who felt betrayed by her competing talk show, which caused the ratings of Rivers’ show to plunge (as if viewers were children forced to choose between 2 parents in a divorce). Joan Rivers’ husband, Edgar Rosenberg, the Executive Producer of her new Fox series, was so distraught by the feud that he committed suicide.

Despite its early failings, Fox’s parent company, News Corporation, owned and operated by Rupert Murdoch, remained committed to success. As we all know, Murdoch’s instincts paid off big time, and Fox found its brand and footing with sexy Aaron Spelling nighttime soaps, Beverly Hills 90210 and Melrose Place, and edgy sitcoms like Married … with Children and the longest-running series of all time, the animated The Simpsons (a spinoff, of sorts, from an interstitial segment on the Emmy Award winning The Tracey Ullman Show). The Simpsons’ enormous success also paved the way for King of the Hill, and everything Seth MacFarlane touched.

Fox gradually filled its lineup with a stellar slate of acclaimed drama series that put a fresh spin on established formulas, including: The X-Files, 24, Ally McBeal, The OC, House, Bones, Prison Break, along with the edgy sketch comedy show In Living Color and the well-received edgy sitcoms Malcolm in the Middle, The Bernie Mac Show, and Arrested Development. I’m overusing the word “edgy” because that was Fox’s mandate: counterprogramming against the safe, expected shows from the Big 3 “traditional” networks. Just as Netflix knew when they launched into scripted SVOD, Fox needed to take risks and make noise. Controversy was—and still is—not a bad thing to attract viewers, even though Fox went too far with some of their reality shows, to the point that it bordered on what Paddy Chayefsky prophesied in Network. After Temptation Island and When Animals Attack!, what’s next? Televised executions? Jihad for Dollars ? Doing anything for ratings points, the more shocking the better, caused some backlash at Fox. But the crackerjack scripted and reality shows kept coming … leading to the juggernaut and all-time ratings champ: American Idol.

In 2005, Fox became the most-watched network in America in the coveted 18–49 demographic. Idol had peak audiences of up to 38 million viewers during the 2002–2003 season finale (aka the “results show”) and double-season average audiences reaching 31 million viewers in 2006–2007. American Idol was such a phenomenon that even its judges became household names, especially curmudgeonly critic, Simon Cowell. I may be mistaken, but Idol also introduced “the loser montage” into our TV culture’s vernacular. By the end of the 2007–2008 season, Fox for the first time became the highest rated television station in the US overall.

My overview of the TV universe then expands to encompass the fifth and sixth networks:

which eventually merged into …

Both The WB and UPN launched in January 1995. The WB Television Network (aka The WB and short for Warner Bros) was first launched as a joint venture between Warner Bros Entertainment (a division of Time Warner) and Tribune Broadcasting. The network’s mandate primarily targeted teenagers and young adults. Its most prominent shows were the mega-hit Joss Whedon series, Buffy the Vampire Slayer and spinoff Angel. The WB’s other successful, critically acclaimed series included J.J. Abrams and Matt Reeves’ 1-hour drama, Felicity, starring Keri Russell and Dawson’s Creek— a fan favorite—created by showrunner Kevin Williamson (who wrote the Scream and I Know What You Did Last Summer movies, and went on to create The Following with Kevin Bacon on Fox).

The United Paramount Network (UPN) was originally owned by Chris-Craft Industries/United Television and Viacom (via its Paramount Television unit). UPN was later spun off to CBS Corp (in December 2005), when CBS and Viacom split into 2 separate companies.

In September 2006, CBS Corp and Warner Bros Entertainment shuttered The WB, and announced their plans to rebrand and relaunch as The CW, with select programs from both the WB and competitor UPN (which had shut down 2 days earlier) moving to The CW upon launch the following day, including Smallville and Gilmore Girls.

The CW launched with a 2-hour season premiere of America’s Next Top Model. The network’s mandate targeted and continues to target 18- to 34-year-olds, fostering long-running series such as Supernatural, Gossip Girl and The Vampire Diaries. Today, The CW dominates among its core demographic with the hit series Arrow, The Flash, Jane the Virgin and Reign.

Back to that overview—and my current personal justification for each network in our household—ABC (Shonda Rhimes’ shows, Modern Family, Shark Tank); CBS (60 Minutes, The Good Wife, Code Black, Stephen Colbert); NBC (Blindspot, SNL, Jimmy Fallon); Fox (Empire, Brooklyn Nine-Nine, The Last Man on Earth, The Simpsons); The CW (The Flash, Jane the Virgin, Crazy Ex-Girlfriend). I’d also be remiss not to toss in PBS—which used to be the only place to watch British aristocracy and the people who run their manor houses.

When I think of our household with our teenaged kids, I like to consider us all pretty darn media savvy. For the past 10 years, our cable television provider has been DirecTV … so now you can add to the chart basic cable—aka “free,” advertiser-supported—channels (and their current reason for existence, in my humble opinion): AMC (The Walking Dead, Better Call Saul); BBC America (Orphan Black, Luther); ESPN (sports, goes without saying); FX (Fargo, The Americans, Justified, Louie, Archer, The Bastard Executioner); TNT (The Last Ship— my kids watch it); USA (Mr. Robot, Suits); MSNBC (Rachel Maddow); Adult Swim (Rick and Morty); HGTV (who can exist without home renovation shows and House Hunters International?). Oh, and Lifetime (solely for Project Runway). I stopped watching SyFy when they changed the name to SyFy because it’s nonsensical and therefore annoying, but a friend of mine created their series Helix that was quite good.

But that’s not all. In our household, we also like to watch movies and high quality “premium cable” series without commercial interruptions and censorship—nudity, swear words, necessary violence—all of the non-exploitative, non-gratuitous sort, naturally.

So add to this current overview (in our household): HBO (Game of Thrones, Veep, Silicon Valley, Togetherness); Cinemax (The Knick); and Showtime (Homeland, Ray Donovan, Masters of Sex, The Affair, Billions). We haven’t watched Starz since Spartacus finished its run. (Sorry, Mr. Albrecht.)

If I’m not counting streaming music channels, then my chart is now complete: ABC, Adult Swim, BBC, CBS, NBC, Fox, The CW, PBS, AMC, USA, TNT, FX, ESPN, MSNBC, HGTV, Lifetime, HBO, Cinemax, Showtime. I’m no good at math, but that’s about 20 channels.

When I first started researching this book, I figured I’d cover Netflix, Amazon, Hulu and Crackle. Not as simple as the Big 3 from my childhood, but simple enough: a thorough analysis of high quality, original series available both AVOD and SVOD.

After the Revolution

(subject to change at any minute)

Over the past year—from 2014 to 2015—here’s what’s happened: the digital television revolution. It’s not just an exponentially expanded chart, it’s a Big Bang EXPLOSION. (I’m talking in astronomical terms, not the TV mega-hit show.) Take a look …

From Here to Ubiquity

Recently, with our DirecTV bill exceeding $150 per month (given the number of DVRs in our household), we decided to “cut the cord” (or the satellite feed), and attempt to subsist on the basic broadcast network and cable channels, and stream everything else digitally via Netflix, Amazon, Hulu and Apple TV. Of course, we couldn’t really cut the cord because our smart TVs aren’t smart enough to access the menu of amazing TV series without a cable connection. And so, even though we’ve cut out our DirecTV premium channels in favor of HBONow (via Apple TV) and Showtime Anytime, we still need our Time Warner cable and DirecTV for sports and a limited selection of basic cable channels. Man cannot live by Netflix alone.

In the ‘80s, my mantra, along with everyone else’s was, “I want my MTV.” Today, for me, it’s more along the lines of: “I need my FX fix.” And “I abide by AMC.” Bottom line: you can cut back, but you can’t completely cut off your cable and/or satellite. The cable and satellite TV providers coined the phrase, “the skinny bundle,” which is the same as “TV a la carte.” Order only what you intend to watch. I’ve managed to whittle down our DirecTV subscription to less than half; our Time Warner cable bill has remained the same. And God only knows what’s going to happen after the next round of mergers and acquisitions. DirecTV is now owned by behemoth AT&T—which I believed was already a monopoly. (This can’t be good for consumers or mankind. Hey, there’s a reason why Mr. Robot is my favorite series at the moment.)

Even though we’re in the midst of a radical digital television revolution, as history is our guide, there will be further consolidation of corporate power. The audience is now in charge of what they watch on TV and when on every network who has skin in the digital game. But the technology still dictates how we watch, and the network gatekeepers still control distribution and content. As long as there’s money to be made—and in spite of global piracy, hundreds of billions are at stake—corporations continue to call the shots and own our media choices.

Or in Vegas parlance: the house always wins.

Current Mandates (and Demographics) at the Top Digital Networks

(subject to change any minute)

Amazon Studios: A Peek into Special Worlds

Their only mandate is: quality. Content that’s going to have a core of loyal viewers for whom an Amazon Original Series is their #1 favorite show, as opposed to a wider, less passionate audience. Creator/showrunner Jill Soloway’s superb, groundbreaking half-hour dramedy, Transparent, changed everyone’s perception of Amazon Studios, followed by sublime British import, Catastrophe. Children’s programming is one of their biggest growth areas, along with a slate of theatrical movies, and the continuation of their online interactive “Amazon Pilot Season” and Open Submission Policy (see Chapter 13 on Emerging Voices). The target demographic is more or less everyone—at least, everyone who shops, which is pretty much everyone. Amazon has also managed to wrestle away from Netflix some of British TV’s and BBC America’s buzziest hits, including Orphan Black and Broadchurch, all ready for binge-viewing SVOD.

First and foremost a retail operation, Amazon.com’s Prime entertainment offerings serve as a magnet to draw shoppers to their main site. This arrangement is analogous to the how the megaplex would attract moviegoers to the mall. For the relatively low annual Amazon Prime membership fee (currently $99), you can have a virtual shopping experience, with movies and TV series just a few clicks away, commercial-free. The caveat, of course, is the movies available on Amazon are not the latest blockbusters, and you’ll miss out on the giant movie screen, mind-blowing surround sound and stadium seating in a communal, darkened movie palace. But you’ll also avoid lines, expensive movie tickets, exorbitantly priced drinks and snacks, and rude people talking during key moments. Plus, your Amazon Prime subscription comes with the added benefit of free shipping of all merchandise (often within 48 hours). For the shopping and media consumer, this is a win-win, as long as the content meets or exceeds their expectations. For Amazon, this arrangement drives traffic to their retail site with the added benefit of gathering information on consumers’ buying and viewing habits—which feeds their algorithmic formulas as a means of green-lighting their original series.

Amazon Studios have received flack for not reporting ratings on their shows. But ratings are linked to selling advertising and, as the world’s largest retailer (Amazon surpassed Wal-Mart in 2015), the company doesn’t require conventional advertising. Nevertheless, no creative endeavors are without risk, and not all of Amazon Studios’ executive hunches and algorithmic formulas have paid off; of their first 2 scripted series, Garry Trudeau’s half-hour, single-camera political satire Alpha House ran for 3 seasons, but Betas floundered and was swiftly canceled. Was its cancellation due to Amazon’s internal metric of low ratings? Poor critical and viewer response? Production issues? Corporate infighting? All or none of the above? Despite buckets of cash, an insatiable mandate for fresh content and audience voting to help determine which pilots to order to series, Amazon Studios still follows the industry’s highly unscientific, high-risk business model of trial and error. As Transparent continues to rack up the accolades, how many people are actually watching the show is anybody’s guess.

Dark, serialized detective series, Bosch, based upon the series of bestselling novels by Michael Connelly, offers up high quality, jazzy, brooding, moody 1-hour drama, on par with precursors Homicide: Life on the Street and influenced by The Wire. Bosch is neither truly groundbreaking nor does it set out to be, but again, how many people are actually watching is as mysterious as the Season 1 murder investigation.

The jury is also still out on Amazon’s latest crop of original series. While the nostalgic dramedy pilot, Red Oaks— from Executive Producer Steven Soderbergh—was green-lit seemingly years ago, the full series (to use an old music industry expression) hasn’t dropped yet (at press time, it’s scheduled for October 2015). The provocative, dark satire/dramatic thriller, Hand of God, starring Ron Perlman and Dana Delaney, ordered that same pilot season, hit our screens in late summer 2015—to middling reviews.

Other picked-up series offer more promise: dark, twisted, racy suspense thriller, Mad Dogs, from co-creator/showrunner Shawn Ryan (The Shield) is currently in production; if that show can deliver the goods following its pilot’s shocking cliffhanger, Amazon could have another hit. There is already an Amazonian level of buzz in anticipation of the full season of The Man in the High Castle, based upon Philip K. Dick’s novel, and adapted for television by veteran writer/producer/showrunner, Frank Spotnitz (The X-Files, Strike Back, Transporter: The Series). Its pilot garnered record-breaking previews and high votes from viewers. On the horizon are also Amazon original movies and limited series from Spike Lee (Chiraq) and the Untitled Woody Allen TV project (to circumvent the “Pilot Season” and go straight to series).

One gamechanger could be the new ability for Amazon subscribers to download Prime Instant Video titles to their device, to watch later. The time period to view offline then varies by title. Amazon has actually offered this capability for a few years, though only on its Fire tablets. Now, whether you’re on iOS or Android, it’s an attractive function, which means you can watch shows and movies on the move—for example on a domestic flight, when you’re keen to stream, but lacking a WiFi connection. At the moment, not every title is available to download, because Amazon is still ironing out deals to pay corresponding increased fees to the rights owners (and that catalog is large). You can, however, even download the older HBO shows available on Amazon, including The Sopranos, The Wire and previous seasons of Girls. All to watch later, at your convenience. That’s something HBO subscribers themselves aren’t able to do—yet. Transcontinental plane journeys just got a little more interesting. And one latest gamechanger is that Amazon may be creating a standalone, live online TV service. Bloomberg reported on October 7, 2015 that Amazon had already reached out to CBS and NBCUniversal about including their channels. That really would change everything, not least for the biggest competitors in the field.

Crackle (aka Sony Crackle): Premium Cable Style, Globally Minded

Crackle presents premium cable quality original series, movies from the extensive Sony Pictures’ library and FX/AMC quality reruns—all on an AVOD basis. That is, subscription-free. The price of admission = enduring targeted ads/commercial interruptions that, for the moment, cannot be skipped.

Offered globally in over 20 countries, Crackle’s program mandate is for shows that appeal to a worldwide audience. As Sony has their hands in multiple buckets: gaming, streaming and technology, they have perhaps the widest reach around the globe. Rather than being an aggregation service, Crackle licenses its content on an a la carte basis, as a broadcast network does.

Crackle is now seeking to expand their slate of half-hour edgy, action-suspense series—Chosen, Sequestered, Cleaners and the high-profile Jerry Seinfeld moveable feast talk show on wheels: Comedians in Cars Getting Coffee— into bold, original, 1-hour drama series that transport viewers into unique, specialized worlds, such as their first 1-hour offering, The Art of More, that takes us behind the scenes of elite New York auction houses (a la Sotheby’s, Christie’s).

The digital network’s most popular downloaded movie of all time was Joe Dirt, starring David Spade; consequently, Crackle made the direct-to-video sequel, Joe Dirt 2. The platform also made the direct-to-video movie The Throwaways, featuring James Caan and Kevin Dillon. Their series tend to skew toward a young, male audience, but Sony Crackle is looking for their House of Cards and Breaking Bad. They know they can attract viewers and export their shows to their worldwide networks, so they have the market; now they crave acclaim: Emmys and critical success.

Hulu: Young and Fresh Provocative Programming

Originally launched as a second window destination for just-missed episodes and reruns, Hulu has assertively moved into the Originals space, with an impressive slate of scripted half-hour comedies, Deadbeat and Difficult PeoplE (under the auspices of TV’s newest and most likeable mogul, Amy Poehler), the mock-reality series/sitcom, The Hotwives of Orlando ; fresh animation (The Awesomes); dramedies: Casual (from Executive Producer/director Jason Reitman); 1-hour dramas: popular teen soap, East Los High, The Way, from creator/showrunner Jason Katims (Friday Night Lights and Parenthood); and reality series, including the sports mascot docu-series, Behind the Mask. Hulu is also the exclusive second window home for linear, broadcast network hit series Empire and Jane the Virgin. The streaming network also rescued Mindy Kaling’s The Mindy Project upon Fox’s cancellation. And Hulu now owns the complete library of every Seinfeld episode.

Hulu is a hybrid of AVOD and SVOD that targets the coveted 18–34 demographic. Due to subscriber demand, in August 2015, they launched their commercial-free option for a monthly $11.99. The long-standing $7.99 per month plan is still available for those with time, patience and who wish to save. Their $7.99 fee was initially the same as Netflix (that went on to raise their monthly fee a little). The monthly fee for their Limited Commercials plan remains lower than Netflix, Amazon and HBONow, but subjects viewers to targeted commercials. How can Hulu get away with double dipping this subscription fee and still have commercials? For several important reasons: 1) their ads are targeted, often high quality, and fewer than on broadcast and basic cable networks; 2) their monthly subscription fee is half the price of HBONow—but only slightly cheaper than fully SVOD Netflix; 3) Hulu is a wholly domestic company, so they’re targeting solely US consumers with ads, and their younger demographic tends to watch TV with a device in-hand, so commercials are less a nuisance and more a chance to refocus on a secondary gaming app and/or Instagram, Snapchat and/or text message conversation; 4) Hulu knows that their growing subscriber base is coming from shows that are clippable (Saturday Night Live, The Daily Show, Jimmy Fallon) on other platforms, and viewers then sign up for Hulu for the whole enchilada. By comparison, Comedy Central has suffered from unauthorized clips from their series popping up on YouTube; in fact, substantially more viewers watch Comedy Central’s first-run shows the next day on YouTube than in the show’s timeslot.

In July 2015, Hulu’s agreement with Showtime brought all Showtime series to the platform for an additional $8.99 per month, including hit movies and documentaries. Also in 2015, Hulu announced a deal with Cablevision Systems Corporation, which brings all of Hulu directly to Optimum customers, initially in the New York area. It is their first agreement with a cable/satellite provider, and they plan to follow it with more partnerships with such MVPDs. And back in 2011, Hulu launched Hulu Latino, marking the very first time a comprehensive, dedicated Spanish library of premium content was made available through AVOD/SVOD in the US.

Naturally, Hulu seeks to avoid the trap of huge audiences without a matching revenue stream. And so, if their acquisitions and original content can all be accessed on their user-friendly app, at a reasonable price, their subscribers appear to be happy—and have the option to forego commercials entirely by paying the additional $4 per month. A few shows—predominantly ABC primetime series such as Marvel’s Agents of S.H.I.E.L.D., and a couple of others, are excluded from Hulu’s No Commercials plan (due to streaming rights), but they can still be watched interruption-free with a short commercial before and after each episode. Highly anticipated limited series, 11/22/63, based upon the bestselling novel by Stephen King, produced by J.J. Abrams’ Bad Robot and starring the ubiquitous James Franco, might well be positioned to attract subscribers towards the higher priced, ad-free plan. My hunch is that Hulu will eventually evolve into 100% SVOD.

By the same token, Hulu’s Chief of Content, Craig Erwich, recently stated, “With all of our new originals, we will release episodes weekly. We want to give viewers the opportunity to discover their favorite shows every week. Like you, we value the shared experience and the joy of the water cooler that is television.”¹ Erwich’s plan of attack allows the service to get shows to the audience faster because there’s no need to accumulate a full series in the bank before releasing—which flies in the face of the all-at-once method that has become the standard on Netflix and Amazon. Of course, viewers can still binge on Hulu Originals as episodes build up in their library.

Netflix: Exclusivity and Variety

The last thing Netflix wants is for their subscribers to scroll through their menu of offerings with a “been there, seen it” ennui. Fresh, exciting, new streaming content that can only be found and “binge viewed” on-demand on Netflix is key. Although, as Marta Kauffman, co-creator/showrunner of Netflix’s Grace and Frankie, says, “Netflix doesn’t like the term ‘binge-viewing.’ ” Perhaps it makes their content sound like a disorder of some kind? Despite their early, “high quality,” smart, provocative originals (House of Cards, Orange Is the New Black, Unbreakable Kimmy Schmidt, BoJack Horseman, Bloodline), Netflix’s Chief of Content, Ted Sarandos, was careful to point out that “high quality” is highly subjective (see interview in Chapter 1). That’s why 2 series that could not be more dissimilar, the Wachowskis’ globetrotting, mind-bending drama series Sense8, and septuagenarian sitcom Grace and Frankie (starring Jane Fonda and Lily Tomlin) can co-exist on the same network.

Accordingly, as Netflix continues to expand, it’s evolving from a niche network to the Something for Everyone Network (all ages, genders, socioeconomic and education levels), with a high profile, updated spinoff of the multi-camera sitcom Full House (originally on ABC from 1987–1993), entitled Fuller House ; the prequel/TV series version of the cult movie Wet Hot American Summer ; a wide swath of children’s live-action and animated programs (like Amazon, hook ‘em into the Netflix brand while they’re young); theatrical quality movies: Beasts of No Nation, starring Idris Elba (Luther, The Wire), written/directed by Cary Fukunaga (Sin Nombre, True Detective Season 1), War Machine, starring Brad Pitt, directed by David Michôd (Animal Kingdom), a multi-picture deal with Adam Sandler; a new, genre-bending “talk show” from the irresistibly irreverent Chelsea Handler; and up to 20 original series a year—with an estimated development budget for 2015–2016 of over $800 million (yet still less than competitor HBO’s $1 billion development budget).

Like Amazon, Netflix eschews reporting ratings. While their business models are very different (Amazon is a retail company; Netflix is a media company), both companies are SVOD and not beholden to advertisers. Netflix’s only mandate is to add new subscribers while keeping their existing subscribers happy. Their series’ pickups are even more heavily influenced by their proprietary algorithmic formula. And so, House of Cards was green-lit for 2 seasons right out of the gate, based on a confluence of factors: political thrillers are very popular movie selections at Netflix as deduced from their red envelope movie mail order business, as are movies featuring Kevin Spacey and directed by David Fincher. Netflix’s “secret sauce” algorithmic formula also led them to renew Season 2 of Orange Is the New Black before Season 1 had even aired. And kept the blood flowing on 3 seasons of horror meister Eli Roth’s series Hemlock Grove, despite a brutal attack from critics.

The platform is also a potent second window for viewers seeking an SVOD alternative to series that originated on linear television networks, such as Mad Men’s run on AMC.

As such, Netflix provides the digital streaming alternative to what used to be the purview of the DVD “boxed set” of such iconic series as Friends— and still commercial free. Netflix also resurrected the canceled Fox series, Arrested Development, ensnaring its niche, cult following. For a time, Netflix was also an exclusive importer of shows from the UK, including Happy Valley, The Fall and Luther. Netflix hasn’t been afraid to import shows in their original language either, with Lilyhammer in both English and subtitled Norwegian, and Narcos in English and subtitled Spanish.

While Netflix continues to give HBO a run for its money, HBO retains a home court advantage for 2 significant reasons: 1) HBO has more overall subscribers, and their HBONow and HBOGo apps level the playing field for “cord-nots”; 2) HBO is vastly more profitable. Until recently, Netflix did not own its content—that’s right, their $100+ million investment in the first 2 seasons of House of Cards enriched HoC’s production entity, Media Rights Capital, far more than Netflix’s coffers. Ditto: Orange Is the New Black and Lionsgate Television. If you take the long view, thanks to Netflix’s aggressive marketing, House of Cards and OITNB are known as Netflix shows as much as The Sopranos and Sex and the City were HBO shows. But even Netflix’s mammoth investment in Francis Underwood’s Machiavellian ascension only gave the platform the exclusive rights to stream those seasons 1 and 2 online first, and didn’t fully cover the total production costs of the first 26 episodes. The rest of the costs fell on Media Rights Capital, which is now unencumbered to sell other rights to the show to the highest bidder(s), including Comcast (ouch!). Yet Netflix is nimble and now owns the rights to its originals. Perhaps the biggest lesson learned from all media companies in the digital television revolution is that ownership of content has far greater value than distribution.

Netflix has also embraced what has become a pioneering principle for serialized scripted programs: the entire first season of a show is now considered its pilot, instead of solely its first episode. Subscription audiences tend to be more willing to hang in there for the duration (if the promise of the premise warrants it), confident that a favorite new series in which they’re investing time won’t be canceled before its conclusion, due to poor ratings. Patient, loyal viewers of series such as Bloodline, House of Cards, Orange Is the New Black and even BoJack Horseman are rewarded with deeper character evolution and unexpected conclusions as the season unfolds. In a culture of instant gratification, the slow-burn series offers the fulfilment of great literary fiction, if you’re willing to slow down, pay attention and keep watching. And at the other end of the spectrum, Netflix might be producing shows that move much faster—specifically, news programming. In October 2015, Ted Sarandos announced Netflix’s interest in expanding into the news game sometime in the next 2 years.

From the start, Netflix was the only TV network that offered immediate countdown and automatic play of the next consecutive episode. But over the past year, now almost every AVOD and SVOD network offers this feature (which can be disabled if you choose). Hulu’s shows always traditionally had ads in between episodes even under automatic playback; however, its No Commercials plan is changing this. And internationally, Netflix has its work cut out as many local platforms rival it for price, ease and existing brand recognition. In France, for example, Netflix’s number of subscribers remains well below 1 million, even a year after introduction. Competitors often offer a selection of both domestic and international shows and movies, that have proved appealing to consumers. Netflix’s reach is global and it is certainly carving its niche, but international growth will take time.

Vimeo: A Curated, Self-Uploading Storefront for Creators

In their own words, “In 2004, Vimeo was founded by a group of filmmakers who wanted to share their creative work and personal moments from their lives. As time went on, likeminded people discovered Vimeo and helped build a supportive community of individuals with a wide range of passions. Today, millions of people from all around the world enjoy Vimeo, and we’re growing bigger every day. We hope this fun and friendly environment fuels your own creativity and inspires you to contribute to Vimeo in the ways that mean the most to you.”²

For viewers, there’s either AVOD or SVOD. Vimeo Basic is “free” with banner ads, and offers up to 500 MB per week (25 GB per year); Vimeo Plus is currently priced at $59.95 per year, and offers 5 GB a week, up to 250 GB a year, enhanced customization, stats and support; Vimeo PRO (of course for professionals) offers 20 GB per week, up to 1 TB per year at the current price of $199 annually, with even more customization, dedicated support and the option to sell your videos.

Artists with a large following are their own brand; Vimeo is the platform. So, you can access a piece of content that originated on Vimeo via YouTube, but you can watch the entire series only on the Vimeo site in higher definition and quality. Traditional media has been a one-way street to a passive audience. Vimeo seeks full audience engagement across multiple platforms. It’s a carefully thought out, transmedia experience. Vimeo executives see themselves as curators rather than gatekeepers.

Unlike its competitors, Vimeo only takes a 10% surcharge from content creators—who retain ownership and 90% of revenue streams. By comparison, iTunes offers a 70/30 model and is a closed platform, unlike Vimeo. And just like YouTube, content on Vimeo can be accessed via embedded links on other digital platforms, which is convenient for businesses that can host their videos on Vimeo, but offer playback directly on their own websites. Vimeo has presented its PRO option as a solution for such businesses looking to host their high quality video content online.

As a curated variation on the ubiquitous YouTube model, Vimeo channels have become a coveted destination for professional content creators (video artists, auteurs and aesthetes) seeking quality control to distinguish them from non-curated, amateurish cat videos and homemade video junk. Vimeo offers a wide selection of shorts, movies, and original series. Their coveted “Staff Picks” (hand-picked, in-house favorites that defy corporate and/or political interference) helped elevate the web series High Maintenance into a viral phenomenon (see interview with creators/showrunners Katja Blichfeld and Ben Sinclair in Chapter 9 on Webisodes).

The quadruple bottom line for all digital networks is: fresh content, brand trust, creating hits, authenticity.