NETFLIX IS HOLLYWOOD’S NUMBER ONE ENEMY
When a 21st Century Fox vice president left the company to join Netflix, the head of Fox 21 Television Studios, Bert Salke, said the streaming service was “public enemy number one”.
Salke, like many traditional TV networks and studios, has seen the impressive rise of Netflix in recent years and knows it is becoming the first choice in entertainment for many who enjoy series and movies.
Netflix’s financial results for 2016 show just how well the company is doing, with its revenue up 35% compared to the previous year and its subscriber count increasing to over 93 million.
The strength of its offering is the vast array of original and third-party content it offers on-demand, with TV series the main drawcard. In 2017, Netflix plans to improve its movie offering – with original productions a cornerstone of the play.
Bringing in the big guns
In March 2017, Netflix made two big announcements which showed its clear intent to take on Hollywood.
The first was that Scott Stuber, former vice chairman of worldwide production at Universal Studios, was joining Netflix. Stuber will lead the company’s original film initiative, including the production and acquisition of original movies.
Stuber also founded and ran Bluegrass Films, which produced Ted, Central Intelligence, and Safe House.
The second announcement by Netflix was that it had signed a deal with Adam Sandler and Happy Madison Productions to produce four movies. While Sandler’s movies may not be in line to win an Oscar anytime soon, they have proved “extremely successful” with subscribers around the world, said Netflix.
If you combine the service’s current TV series offering, its intention to become a strong player in the production and release of original movies, its low price point, and the fact that this is all on offer from the comfort of your couch, Netflix is becoming a bigger threat to traditional entertainment players.
One of the casualties may be movie theatres, as Netflix subscribers will not have to visit a cinema to see new releases.
High-end – and high-budget - series offered by Netflix, such as The Crown and Narcos, also provide a strong incentive for users to stay at home and stream instead of visiting a cinema.
Massive value for money
Besides its vast library of content and the convenience of choosing when and where you watch content, Netflix also provides exceptional value for money.
A pair of movie tickets and getting to a cinema is more expensive than a monthly subscription to the streaming service – a value proposition which movie chains will struggle to trump.
"One of the casualties may be movie theatres, as Netflix subscribers will not have to visit a cinema to see new releases"
Netflix has also made it easy for users to watch content on almost any device – from PCS, to smart TVS, to mobile phones – which allows customers to benefit from the service even when they are away from home or where they normally consume content.
As consumers become more accustomed to a digitalfirst experience in many aspects of their lives, movie houses and Hollywood studios have a tough fight on their hands to keep Netflix at bay. ■