this post was submitted on 25 Dec 2024
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Anon got it backwards, networks noticed how profitable Netflix was and bumped the price for Netflix to stream their stuff. Netflix responded by producing their own content rather than leasing others’ at exorbitant rates. Then Netflix later got greedy and bumped their prices, lowered their quality, and cancelled all of their good shows.
I think it's a bit of both. Netflix knew that companies choosing to pull their content would be a threat, so they prematurely started producing content (famously starting with House of Cards and Orange is the New Black). Whether because they saw this as a threat or because of the perceived greater profitability of their own platforms (probably a bit of both), other studios started pulling their content from Netflix and setting up their own streaming sites.
And naturally, other companies pulling their content accelerated Netflix's desire to produce their own content to ensure they weren't left in the lurch.
It doesn't really matter, though. The only cause of companies pulling their content is Netflix's success. There was no way Netflix could have prevented it.