Netflix splurges on Seinfeld to survive the streaming wars
But are you master of your domain?... Netflix is. The streamer just treated itself to Seinfeld. All of it — for more than $500M. Netflix rounded up the crew from Tom's Restaurant (close-talkers included) because it needs to replace its top shows that are getting yanked by their owners amid these streaming wars.
- The Office (#1 Netflix show): Gone in 2020 — NBC is taking it back to include in its own yet-to-be-named streaming service.
- Friends (#2): Gone in 2021 — AT&T is taking it back and adding it to HBO Max.
- All Disney movies: Gone by November — Disney is launching competitor Disney+.
- FYI: Seinfeld hits Netflix in 2021 (not that there's anything wrong with that) and remains on Hulu (probably with commercials) until then.
'No streaming for you, Sony'... The key here isn't how much Netflix paid (it was more than Friends or The Office recently went for), it's who sold it: Sony. The only companies willing to work with Netflix are the ones without their own streaming platforms. Jerry, George, Elaine, and Kramer aren't too worried — their series has made over $3B since the finale episode.
You're loyal to George Costanza — not Netflix... Streamers are discovering that cord-cutters care most about the shows they'll watch over and over again — aka sitcoms. Netflix lost US subscribers last quarter because its news shows didn't land. Now it's searching for a "loyalty leader" — a show that keeps you hooked to your subscription. It's betting Seinfeld will, yada yada yada, maintain your subscription.