It turns out the rumors earlier this week were true: Netflix is now in the original content business. The company has confirmed reports that it has acquired the first-run rights to a new political drama series starring Kevin Spacey, which will debut on Netflix late next year.

Two seasons’ worth of episodes—26 in total—have been ordered. Netflix is not funding any production costs or creative risks of House of Cards, only acquiring the rights.

Interestingly, Netflix will not be relying on any traditional advertising to market the new show. It will instead use its recommendation technology to encourage viewers of other political dramas on its service to watch the new show.

Netflix spokesman Steve Swasey believes that the series’ pedigree makes the licensing an acceptable risk for his company:

“It does help if there is a precedent for content, but this series is a perfect storm of talent and material, so we had a high degree of confidence in it,”

Should HBO and other networks be nervous that Netflix, a growing threat, is now beginning to acquire original content? It’s going to be fascinating to see what shakes out in this constantly shifting market in the next few years.

(via the L.A. Times)