“Netflix effect” is back as studios license old shows to competitors again

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Some of Netflix’s competitors are reversing a streaming war tactic by licensing their old TV shows and movies to the streamer—boosting its programming offerings but also potentially squeezing its profit margins, analysts say.

Netflix relied heavily on programming that it licensed from other companies when it launched its streaming service in 2007. But after Walt Disney, NBCUniversal, Paramount and the then-Time Warner launched their own streaming services, they pulled many of their shows from Netflix to avoid feeding a company that had grown into an arch-competitor.

With legacy media groups under pressure to produce streaming profits, however, licensing revenue is looking attractive again—even if it comes from Netflix. This summer, Warner Bros Discovery’s HBO network began licensing a handful of older shows to Netflix, including Insecure, Six Feet Under, Ballers, and Band of Brothers.

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