Netflix Can Constrain TV Studios

A U.S. TV company recently signed a deal with Netflix for a new original drama series. Under the terms of the arrangement, both the TV company and Netflix are funding the show and collaborating on distribution: The TV company will release it in the U.S., and Netflix will get global streaming distribution rights. The TV company retains the ownership rights to the show, which means it can find other licensing partners for the program in the U.S. and abroad.

But under the terms of the deal, the TV company also has to wait a certain period of time before it can license the show elsewhere. And with Netflix available in more than 190 countries globally, there aren’t many international TV networks and distributors that would want a show that’s already streaming in their markets.

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