Why Netflix Wouldn't Cancel "Orange is the New Black"

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A recent rumor has Netflix canceling its prison comedy after just two seasons. Not true. But here's why the company would have been crazy to kill the series.

Transcript of Why Netflix Wouldn't Cancel "Orange is the New Black"

  • Why Netflix Wouldnt Cancel Orange Is the New Black
  • About the Series Orange Is the New Black (OITNB) is produced by Lions Gate, the same studio responsible for The Hunger Games and Twilight franchises, along with the TV hit Mad Men. Season one launched last June, and quickly became Netflixs most watched original series yet. Season two launched on June 6, but Netflix had already renewed the show for a third season. Source: Netflix
  • Definitely Not Canceled Contrary to recent rumors, the show was not canceled, and in fact season three is already in production. But Internet rumors die hard, so Netflix tweeted out this picture from the set during production. Netflix signed up for a third season back in May, even before season two was released to its subscribers. Source: Netflix
  • Emmy Nominations The first season wasnt eligible for Emmy awards in 2013, but this year OITNB led all comedies with 12 nominations including Outstanding Lead Actress (Taylor Schilling) and Outstanding Comedy Series. Netflix secured the first ever Emmy award for an Internet show last year for House of Cards, but OITNB has a shot at racking up more awards than that critically acclaimed drama. Source: Netflix
  • Social and Media Buzz Emmy nominations and media praise creates big buzz for Netflixs brand. The OITNB Facebook page counts 2.3 million fans, and its Twitter feed has nearly 500,000 followers. Source: Netflix
  • Membership Gains Exclusive and original shows have been great for Netflixs business, boosting profits and becoming a key draw for attracting new members. Last year the company added 6.3 million streaming subscribers, 1 million more than it added in 2012. Netflix credited the great press coverage and social buzz generated by OITNB for a part of that gain, which pushed its member base to 36 million in the U.S.
  • Membership Gains Those membership gains provide extra cash for Netflixs increasingly ambitious content deals -- like its exclusive pay TV agreement on Disney, Pixar, Marvel, and LucasFilm movies starting in 2016. OITNB and other original content has also made it 1) cheaper for Netflix to acquire new customers and 2) a stickier service for existing members. You can see the dramatic impact of those two trends in Netflixs U.S. profit margin, which has leapt to 26% from 11% in late 2011.
  • Redefining a Brand But the biggest benefit to Netflix is that shows like OITNB are boosting the brand in the eyes of its customers. Known as simply rerun TV a few years ago, the company is gaining a reputation for high-quality programming and now has ambitions to build a portfolio eventually comparable to HBOs. In fact, Netflix says that its addressable market is 60 million-90 million customers in the U.S., or as much as three times HBOs total. Exclusive content like OITNB will be critical to the companys target of attracting an additional 30 million members to its service in the years ahead. Source: Netflix
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