On November 7th, Netflix and Disney's Marvel Studios announced
ambitious plans to add four new series and a mini-series event
based on Marvel Comics character to the streaming service's
growing stock of original programming. This deal will bring
series based on Daredevil, Jessica Jones, Iron Fist, and Luke
Cage to Netflix starting in 2015.
Over the last year, Netflix has transformed itself from a DVD
rental and streaming service to a producer of critically
acclaimed original content. House of Cards, Arrested Development,
and Orange is the New Black have all been hits with critics and
viewers. House of Cards was the first internet-only series to be
nominated for a major Emmy Award. While Netfix has not released
specific viewership numbers, they revealed during the July 2013
earnings call that Orange is the New Black had more first week
views than Arrested Development or House of Cards.
Disney's Marvel Studios has grossed $5,119,385,799 in revenue
worldwide since 2008. Marvel's first stab at traditional
television programming (Marvel's Agents of S.H.I.E.L.D.) has had
weak ratings and mixed critical response. Despite weak ratings,
ABC has ordered a full season.
The partnership between Marvel Studios and Netflix makes
perfect sense. Netflix is able to feature more original content
from high profile producers. Marvel Studios has the freedom to
produce content without the constraints of traditional commercial
television. Like HBO or Showtime, original programming on Netflix
does not need to draw a mass audience to be successful. Netflix
does not need to rely on advertisers or traditional television
scheduling. Jessica Jones, Iron Fist, and Luke Cage, while
popular among comics fans, might not be able to carry a feature
length film the way Iron Man or Captain America can. However,
this will be a huge win for both companies, as it will allow
Marvel Studios to use lesser known characters that may have
stayed on the shelf, and will give Netflix more clout as it grows
its original programming division into a real competitor for
networks and cable alike.
DISNEY WALT (DIS): Free Stock Analysis Report
NETFLIX INC (NFLX): Free Stock Analysis
To read this article on Zacks.com click here.