Should Netflix Stop Outsourcing Its Content Deals?

Before you go, we thought you'd like these...
Before you go close icon

Netflix airs a handful of original shows, including Emmy winner House of Cards and future awards favorite Orange Is the New Black. But the streaming video veteran doesn't actually produce these shows in-house, preferring to farm that work out to specialists in the field.

Many Netflix skeptics see this outsourcing model as a sign of weakness, doomed to long-term failure. But is that really true?

In the video below, Fool contributor Anders Bylund explains how AMC Networks and Time Warner's  HBO actually follow the same model in many cases. Lions Gate and Sony may not own any American distribution networks, but they're more than happy to create high-quality content like Breaking Bad or Mad Men for others to distribute. Netflix simply follows a tried-and-true industry practice here.

Dig deeper into Netflix's secrets
If someone asked you, "Why invest in Netflix?" Could you truly answer them? To be honest, few investors could. That's because most of the company's secrets -- the ones that make savvy market watchers rich -- often fly below the radar. If you want an edge on other Netflix investors, be sure to check out "5 Secrets to Netflix's Future" from The Motley Fool. This 100% FREE guide includes actionable advice that you can put to use right now! Just click here now for instant access!

The article Should Netflix Stop Outsourcing Its Content Deals? originally appeared on

Fool contributor Anders Bylund owns shares of Netflix, but he holds no other position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+. The Motley Fool recommends AMC Networks and Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading