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Why CBS Didn't Sell Discovery to Netflix

Netflix had the rights to Discovery for international distribution, but not full rights over the series.

By Three of Seven Sat 03 Mar, 2018 10:26 PM - Last Updated: Mon 02 Apr, 2018 7:37 PM
Les Moonves, the Chief Executive Officer of CBS said during the Morgan Stanley Technology, Media & Telecom Conference "We could have sold it to Netflix for a lot more money, but you can be darn sure All Access wouldn’t be doing as well", however CBS were interested in keeping this on their own subscription service CBS All Access for America.

Talking more about the service, Moonves said that the streaming platform has helped bring in an audience 20 years younger than the audience they attract on old media. While the launch of Discovery helped CBS All Access get record signups when the series moved onto the second episode.

While selling Discovery to Netflix for full international streaming might have had short-term gains, it would not have given CBS a longer term profit, and might not have attracted a wider audience to its platform. Additionally, there is rumours that CBS plans to go international with CBS All Access, which will see Netflix lose the rights to Discovery in other countries, and CBS picking up more customers, should they wish to continue watching discovery.

WRITTEN & EDITED BY Three of Seven - rena.hobden@ufplanets.com
9 Comments
Sat 03 Mar, 2018 10:37 PM
I wish I could watch it on Netflix, but I'm in Texas. I'll just stick to Orville.
Sat 03 Mar, 2018 10:41 PM
So some CBS corporate portfolio analyzer told the executive if they would stream it themselves on their own service they'd make more money over selling it to Netflix?

Did this guy/gal forget the fact that fans can get pissed, not subscribe - leading to downfall of all the capital they invested in the IT behind this system + depreciated the revenue alotted for Discovery and that fans are smart enough to be pirates in their defiance? Thank God I have Netflix and live outside the US, lol. I'm not subscribing for 1 show. The red ocean strategy for this diversification and market entry was not a great idea at all in my opinion.

I thought the reason behind keeping 100% ownership with CBS would have been to not share the franchise ownership with Netflix, which would've made 100% more sense.
Sat 03 Mar, 2018 10:56 PM
I can imagine that not many international fans will get CBS All Access just for Discovery not when you could just torrent it for free or stream it on couch tuner instead.
Sun 04 Mar, 2018 1:45 AM
Interesting, I really hope it doesn't move to CBS All Access for International viewers as well because I'll be unable to watch otherwise! (I'm not paying for CBS All Access!)
Mon 05 Mar, 2018 3:15 AM
I saw a few videos when Discovery launched suggesting fans do NOT sign-up to CBS Access just to watch the show. It was less about the show and more to protest the idea; if enough people signed up (thus paid), then it is effectively proving the model will work for other networks and shows in the future.

Admittedly, a friend let me borrow their login about 8 episodes in, so I was able to catch-up, and then follow along. Otherwise, I would have had to wait because I was NOT going to pay CBS for this one show. Even if I waited for the season to end, and then do a trial run to binge watch, I'd be locked out for Season 2 ... not worth it.

Smooth move for CBS though. They looked at the long-term and won in the end. The consumers (like my friend Tongue Out) fell for it and will get the short-stick later.
Mon 05 Mar, 2018 4:39 PM
Yeah, I'm not sure how well it will do if it rolls out internationally, unless there are plenty of shows people want to catch up on from CBS. I wouldn't get CBS All Access, Discovery really wasn't worth it for me, if I didn't use my Netflix account for other shows, I would have ended that sub.
Mon 12 Mar, 2018 8:10 AM
It certainly would have more effects on the Netflix stock is which is HOT right now on the stock market.... Hundreds of dollars per share.
Mon 12 Mar, 2018 7:20 PM
Additionally, there is rumours that CBS plans to go international with CBS All Access, which will see Netflix lose the rights to Discovery in other countries, and CBS picking up more customers, should they wish to continue watching discovery.


OW HELL NO
Mon 12 Mar, 2018 8:28 PM
They're not going to pick more customers internationally haha.