Stuff like Friends or Zootopia, both currently available on Netflix, were licensed to the subscription streaming service for a fee.
Licensed shows and movies are deals made between Netflix and a TV or movie production company to bring second-run programs to the streaming service.
Basically, it’s everything that Netflix currently offers that is not produced and initially aired on Netflix.
That’s a big difference—and it’s going to mean fewer shows will be hopping from cable/network TV to Netflix when the New Year rolls around.
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