Netflix, Inc. (NFLX) and Amazon.com Inc. (AMZN) Content Rights negotiation Advantage to Be Affected by Nielsen Measurement

Revelations that Nielsen Media is planning to measure subscription of online video services offered by the likes of Netflix, Inc. (NASDAQ:NFLX) continues to elicit debate especially on its expected impact. Gamco Investors Portfolio Manager, Chris Marangi, during an interview on Bloomberg, reiterated that it will be nice to know where most of the people have moved in terms of content viewership with the Nielsen findings.

“Television viewership in the United states has declined on high single digits this year. Where have all the eyeballs gone? Probably a lot of them have gone to subscription VOD services like Netflix, Inc. (NASDAQ:NFLX) and Amazon.com Inc. (NASDAQ:AMZN). The more of them will soon go to other services, and it will be nice to know for a fact where they have gone, “said Mr. Marangi.

Netflix has always remained mum on the ratings of acquired programs as well as original series as the company seeks to maintain an advantage when purchasing some of the programs from content providers. The new measurement capabilities by Nielsen will reportedly analyze the audio components of programs being streamed without the assent of Amazon.com, Inc. (NASDAQ:AMZN) or Netflix. Nielsen is reportedly working on modalities on how it will go on with the measurement of content being watched on mobile devices.

The effort by Nielsen will reportedly go a long way in allowing content owners to understand the impact of licensing their programs to the likes of Netflix, Inc. (NASDAQ:NFLX). The growth of video streaming services has already seen many people make the transition from watching programs on TV’s to relying on content offered online.

“The only thing that my family watches on the TV is sports, Live sports. Everything else is Netflix and Amazon. We are paid subscribers to both of those, and we are watching in various rooms in the house, “said Rob Waldner

Media companies have been generating a good portion of their total revenues from selling content to Netflix, Inc. (NASDAQ:NFLX) and Amazon.  The media companies now fear that a growth of streaming services could in a way hurt traditional ad-supported television where they also generate a good portion of their revenues.

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