Digital Gabe
Cutting Edge Commentary On All Things Media

Digital Might Need Traditional Media After All

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Yes, Netflix is one of those high-flyer digital companies who leads in the streaming video space.  And yes, Netflix is upending the traditional Hollywood content curation bubble by investing an estimated $2B per year in its own original content.  But as it turns out, despite all that firepower Netflix just might need one of the simplest forms of advertising to promote its new shows . . . Outdoor.

Late last week Netflix confirmed they’re in discussions to buy Regency Outdoor for $300M.  Regency is a regional billboard company with a strong footprint in LA, which is the epicenter of the cultural vanguard and the perfect place to promote new movies and shows like the ones on Netflix.  The streamer already spends millions each year on Regency and other Outdoor vendors, so it’s not a crazy idea to buy a billboard company – think why rent when you can own?

The deal for Regency is still up in the air with more bidders than just Netflix showing interest.  If Netflix does buy Regency it will be an unusual reversal to the normal media paradigm with a digital player investing in an old school media company to help it grow, as opposed to the normal digital-killing-traditional sequence we usually watch play out.

 

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