Despite the fact that Netflix CEO Reed Hastings sits on Facebook’s board, that hasn’t prompted any contentions in light of the fact that the two web monsters aren’t contending to purchase similar shows, Hastings said at the Code Conference on Wednesday.
Since 2011, Hastings has been on Facebook’s board. However, as Facebook’s arrangements to store TV-style indicates have taken shape , spectators have asked whether in the end Hastings may need to take off.
At any rate for the time being, that doesn’t appear to be something that troubles Hastings.
It’s “not a major clash yet,” Hastings said Wednesday. “They are not doing ‘Housee of Cards’ … We are not offering on similar shows.”
These remarks are huge since they come as Facebook is making its huge move to go up against conventional TV. Facebook is, as of now preparing a slate of premium shows, to be discharged later this summer, basically in two levels. The main level will be longer scripted shows, up to 30 minutes long, purchased by Facebook . The second level will be shorter shows, with 5-10 minute scenes, which won’t be possessed by Facebook.
It’s indistinct how much cash Facebook will spend on the more, TV-like shows, however Reuters has detailed up to $250,000 per scene. In the event that that is valid, it would place Facebook into a much lower level than Netflix’s first enormous unique arrangement “House of Cards,” which cost an announced $4.5 million a scene at beginning, and went higher, CAA specialist Peter Micelli said in 2013 . A $250,000 spending plan would also give belief to Hastings’ declaration that Netflix and Facebook aren’t contending to purchase similar shows.
Netflix is burning through $6 billion on substance this year, and will spend ” significantly more ” over the long haul. That implies Netflix is bidding against pretty much anyone buying TV shows. So if Netflix and Facebook aren’t offering on similar shows, it demonstrates that Facebook’s first nibbles in the TV show market will be little.
That doesn’t mean, in any case, that Facebook and Netflix will never clash. The dispatch of Facebook’s superior programming has been pushed back various times, and both “House of Cards” and “Scandal” have been utilized as cases of shows they’d be occupied with purchasing in gatherings, sources revealed to Telenews. So maybe even Facebook doesn’t know precisely what it needs for the higher level.
In the event that Facebook ends up setting up TV spending plans for unique shows, in any case, you could see Hastings as the canary in the coal mine. On the off chance that he surrenders his board seat, anticipate that Facebook will begin offering against Netflix significantly.