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One thing that many avid Netflix viewers might not realize is that despite many shows being branded as "Netflix Originals", such as House of Cards and Orange is the New Black, the streaming media company actually doesn't own these shows. But soon that will change, according to CEO Reed Hastings.
Taking House of Cards as an example, producer Media Rights Capital currently owns the series, which allows them to sell it to some other TV networks, as well as retailers like Amazon. This is fairly typical of many TV networks, who choose to rent shows rather than purchase them outright.
However, as Netflix is becoming more and more popular, with subscriber rates and stock increasing, Hastings says that the company is now "taking on ownership and production" of a range of their Originals. This will allow Netflix to compete head-to-head with HBO, its major rival that already owns its popular first-party shows like Game of Thrones.
Ownership of their shows prevents Netflix from being potentially outbid for streaming rights in the future, and opens up additional revenue streams such as Blu-ray sales and licensing to non-Netflix nations. While naturally there is a cost to buying shows outright, it benefits Netflix down the track.
Netflix hasn't said exactly which shows they have purchased from their range of Originals, although Bloomberg Business says they've already acquired Flaked, which is an new comedy that's yet to air starring Will Arnett.