Nightly News   |  March 24, 2013

Netflix changing TV

Netflix is no longer just for movies. It’s changing the way Americans watch television with shows like “House of Cards,” NBC’s Michelle Franzen reports.

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This content comes from Closed Captioning that was broadcast along with this program.

>>> the days of rushing home or planning your night around catching your favorite network tv shows are largely gone, thanks to the dvr, which of course allows people to watch whatever they want. but just as tv networks have justed to that viewing model wbl a company better known for renting and streaming movies is offering tv viewers a whole new way to enjoy first run shows. nbc's michelle franz reports.

>> reporter: "house of cards" is the new political drama produced by a new player in tv production .

>> welcome to washington.

>> reporter: the series was shot and produced by netflix, the company best known for on-demand streaming. the plot line is pure washington intrigue but the business behind the show is a power play all its own.

>> we know not only is it the kind of shows people are watching but the kind of shows people are devouring.

>> reporter: tv industry analystses say netflix is turning the traditional model upside down. using research on its 33 million subscribers to shape the series, recruiting actors whose other work got lots of click. 13 episodes released all at once.

>> i watched the whole series in about 1 1/2 weeks.

>> i'm going to go outside and pretend to use my cell phone.

>> reporter: a cal calculated move that may propel this newest trend on tv.

>> which leased on networks, but in some ways this is the way people view tv these days anyway.

>> it is part of the argument for putting it out there the way that we are.

>> reporter: the changes in viewing habits are also making it harder for ratings company nielsen to track.

>> people used to rally around the televisions of family with all their friends and now it's much more individual experience.

>> reporter: now viewers rally around the time that is convenient for them to tune in and are watching more programs online.

>> we need to follow that content and measure it no matter where it goes. that presents an opportunity in terms of helping our clients and it also presents a challenge in terms of getting it right.

>> big step forward. we're going to make history.

>> reporter: a challenge and game changer in hollywood and at home. michelle franzen , nbc news, new