Here's Netflix's Next Big Move
Even though Netflix has become a staple service for millions of subscribers across the world by [...]
Even though Netflix has become a staple service for millions of subscribers across the world by producing hit TV shows like House of Cards and Orange is the New Black, the streaming service giant is looking to become even more aggressive in taking on the film industry. The company has set a goal to release 40 feature films by the end of 2017.
The Netflix model to bring quality entertainment directly to the consumer in the comfort of their home is a direct challenge to the traditional Hollywood model. While it is unclear at this point whether or not Netflix will be able to disrupt the movie industry on a large scale, it does present a threat.
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"We understand that our approach to films — debuting movies on Netflix first — is counter to Hollywood's century-old windowing tradition," Netflix said in its most recent earnings report. "But just as we changed and reinvented the TV business by putting consumers first and making access to content more convenient, we believe Internet TV can similarly reinvigorate the film business."
In 2016, Netflix produced 16 films, which is less than half of what the company plans to produce this year, according to The Washington Post.
Because Netflix is looking to debut more original movies, the move will also be a threat to the film industry in its established system of showcasing a movie in theaters followed by a DVD release in later months.
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For example, Netflix's 2015 film Beasts of No Nation was shown in some theaters at the same time that it debuted on the streaming service. At the time, there were a number of theater chains that refused to screen the film because of the direct threat that Netflix poses to the industry.
"There is a war in Hollywood right now and the war is the Netflix model versus the Hollywood model," said Ross Gerber, president and chief executive of Gerber Kawasaki.
Gerber continued by saying, "Nobody is going to the movies. If it's not a tent-pole movie, people don't care anymore."
While Gerber seemed to be of the opinion that Netflix was going to successfully upend the movie industry, other analysts doubt the strategy will work. The Vice president and chief communications officer of the National Association of Theatre Owners, Patrick Corcoran, thinks that the movie studios still have the upper hand.
"People get excited going out to movies. The crowd is actually energizing." he said. "Netflix is disrupting television, it's not disrupting the movie business."
Photo Credit: Netflix