TightWind is written by Kyle Baxter. Stay Hungry. Stay Foolish.

Ryan Lawler thinks Netflix is, in part, pursuing original TV shows to gain leverage over networks in content negotiations:

By bidding on an original show like House of Cards, Netflix is sending a message to the cable networks and distributors: “If you won’t license shows to us, we’ll cut our own deals for the shows you want.” In the same way that a shrewd end-around with indie studios gave it access to an Oscar-winning movie before anyone one else, Netflix is going to TV producers directly and cutting out the networks they’ve previously depended on to fund their shows. And, as Kafka points out, that could give it some leverage as it strikes future network deals.

That certainly makes sense; networks want to use Netflix as a dumping ground for old and second-rate content:

The prevailing feeling among the studio managers I spoke with is that Netflix’s streaming service will be a good outlet for the least-valuable material. If they have their way, Netflix will be the Internet equivalent of a swap meet, where only the most dated and least popular titles are available. The studios are betting that eventually people will get bored with the service.

Gaining their own original content—good original content—could do three things: first, as Lawler argues, it could give them leverage in negotiations with networks for top-tier content; second, it could make Netflix not just a place for consumers to watch old material, but a must-have channel for new, original TV shows, like HBO or AMC, which would put pressure on networks to cut deals with them to distribute their content; and three, it could justify higher subscription prices, which may be necessary to keep their current content and add new movies and TV shows at higher prices.

That’s all good for Netflix, and they are in a unique position to own a TV series. Netflix is available on game systems, DVD players, televisions, Internet media boxes like the Apple TV and Boxee Box, and mobile devices. That’s a huge potential for distribution and makes it relatively easy for consumers to get it.

It’s a good reason why it would be more difficult for Apple to pull off something similar—to watch iTunes on your TV, you need an Apple TV or a Mac connected to your TV. Netflix has the means of distributing a TV show like this. It’s a brilliant move.