Good news, marathon viewers! You'll have more to look forward to after binge-watching the new season of House of Cards, which goes live on Netflix, Inc. (NASDAQ: NFLX) this Friday. A season three order is already in the works.
But is it a smart investment for the company, which is still a relative newbie as a producer of original series? Among competitors, only Starz (NASDAQ: STRZA) has been so bold, ordering two seasons of Black Sails ahead of January's series premiere. In the video above, Fool contributor Tim Beyers explains why he likes Netflix's aggressiveness.
First, House of Cards has established its bona fides during awards season having won three Emmys and a Golden Globe for Robin Wright, who took home honors as best actress in a television drama. The ensuing buzz has cemented the show as Netflix's signature property. Tim says it's likely at least 2 million to 3 million viewers watched the first season of the series when it aired last February.
That alone would probably be enough to get Chief Content Officer Ted Sarandos to ink a new deal, yet there's also a second dynamic to consider. Hollywood is locking up talent earlier and more often when it comes to signature properties. In booking a season three now, Netflix gets to tease its subscriber base while also guaranteeing that the show's principal players don't get embroiled in conflicts before pre-production begins, Tim argues.
Now it's your turn to weigh in. Will you be binge-watching House of Cards this coming weekend? Do you agree with the strategy of ordering a season ahead? Please watch the video to get Tim's full take and then leave a comment to let us know whether you would buy, sell, or short Netflix stock at current prices.
Hollywood will pay you for tuning in -- really
The entire foundation of the entertainment industry is shifting, leaving $2.2 trillion up for grabs. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple.