Posts Tagged ‘Netflix’

Netflix and Relativity Media have made a deal that will allow the video-rental giant to stream up to 30 of the studio’s films during the “traditional pay-TV distribution window.” Netflix has deals with all major studios that allows them to stream online a certain amount of those studios’ films, however up until now only Disney and Sony were allowing the streaming of their movies during this period.

The deal will begin with only the 10-12 films that Relativity will release over the next year (their typical output) but Netflix will be able to max out at 30 over the next five years. Both companies have stated that they believe this deal will be the beginning of a different age of distribution, away from pay-TV channels.

“Our continued goal is to expand the breadth and timeliness of films and TV shows

Netflix's streaming rights continue to grow, which will possibly help smaller studios gain better exposure

available to stream on Netflix,” Netflix chief content officer Ted Sarandos said.

“We have always been about finding new ways to grow and monetize our business,” Relativity chief Ryan Kavanaugh said. “This clearly is a natural step in the evolution of the movie business and opens up a whole new world of revenue and marketing opportunities.”

Source: Hollywood Reporter

Quick Opinion: That Netflix is now making streaming deals with non-major Hollywood studios should be encouraging for those who are excited about the idea of “big” Hollywood not having as big a monopoly on exposure. With more streaming movies being from smaller (but not small) production and distribution studios the greater leverage they have in making distribution deals with those bigger companies. The more people see your films – and the more evidence you have that they do – gives you more creative authority because there is less reason to bend over backwards to appease a big distributor’s standards. One easy example to cite is how Disney doesn’t tell Pixar how to make their films, they simply get a cut of the profits for distribution. What this all could do is open up an opportunity for production studios like Relativity (Lionsgate, Focus Features, Rogue Pictures, etc.), who prefer to create movies for peripheral audiences.

Hollywood Video already filed for bankruptcy, and all the signs indicate that Blockbuster will be next

In an editorial for IGN.com, writer Cindy White examines the unenviable situation that video stores are in with having to compete with elements like Netflix, Hollywood studios, new customer standards, and age. White pays particular attention to Blockbuster Inc., which at one time was the lone video rental giant but is currently staring down the proverbial barrel of the Chapter 11 gun.

The CEO of Blockbuster, Jim Keyes, recently spoke to the L.A. Times and suggested that what Netflix doesn’t provide his company does, which is the immediate availability of new releases. What perhaps Keyes fails to understand about the renting market is that people who wish to rent movies are more interested in renting what they want from a greater selection than  catching up on what the industry has recently pumped out. Mainstream video stores have never been famous for their wide selections, and charging per-movie viewing fees from their online collection is probably not the way to compete with Netflix’s offering of unlimited online viewings for subscribers.

What White eventually concludes is that Blockbuster is holding on to the past, and that is why they are failing. The company recently signed an agreement with Warner Bros., 20th Century Fox, and Universal which will allow them to show all new DVD releases from these studios without having to wait the 28 day window that Netflix and Redbox must. This gives them a leg up by having the most updated selection, but Netflix in particular agreed to the delay in exchange for a greater selection for online viewing. All of Blockbuster’s moves to fend off bankruptcy indicate that it’s thinking more about the present, while Netflix is clearly thinking about the future.

By the end of her article White comes to the same conclusion that most have, which is that Blockbuster is simply delaying the inevitable. She claims that despite the company’s best efforts so far, it’s quickly heading towards irrelevancy. Mind you not all video rental stores are as doomed as Blockbuster. The business that once nearly had the video rental market cornered is simply proving that without proper management and a sharp eye on the horizon no company is big enough to survive the changing of the times; And you best believe it, the times they are a changin’.

Quick Opinion: Though the article hardly goes into much detail, the point is well made that in the video rental market the tides are changing and Blockbuster is being left behind. What stinks even more for the company is that even though they reportedly signed with the three big studios to make sure they are allowed to rent new DVD releases the possibility still exists that those same studios will eventually forbid rental companies from renting out new releases in order to raise actual DVD sales. In many cases studios get more money from DVD sales than theater grosses, but because DVD sales on the whole have been dipping slightly over the past year they’re trying everything to get them to go back up. If a buy-only period comes to pass, Blockbuster will lose its only redeeming quality with customers. Such a loss would be the final nail in the coffin, assuming Blockbuster stays alive long enough to see the day that happens. The company’s main downfall has been its lack of quality service (it reinstated late fees), higher prices, and limited selection. In other words, it failed to meet the demands of the market. My guess as to why this is the case is probably the same as yours in that the suits who ran the company probably felt so empowered by their success at the height of the rental store era (1999 or so) that it didn’t take competitors like Netflix seriously. Would’a, could’a, should’a.

The online video rental giant Netflix has grown even stronger

After signing new, separate deals, Netflix will have access to more 20th Century Fox and Universal Studios‘ films. Under their new deals, Neflix will agree to wait 28 days after any of their films release on DVD to offer them through their website. Also, Universal agreed to license more of their films for streaming (online viewing) and Fox has agreed to a first-time license that will allow Netflix to stream certain Fox TV shows.

Netflix also made a similar 28 day delay deal for new releases with Warner Bros. earlier this year.

Netflix CEO Reed Hastings said in October studios were wrestling with declining DVD sales as the rental market has been modestly growing and that some studios are considering introducing a DVD retail sales-only window for a few weeks. – Hollywood Reporter

Source: Hollywood Reporter

Quick Opinion: The 28 day delay deals certainly make sense for the studios, particularly 20th Century Fox because they own the distribution rights to James Cameron’s Avatar (which in case you’ve been living under a rock has become the most successful film in history). Having that 28 day window will allow the studio to grab all the money they can from those who don’t wish to wait 28 extra days to rent the movie – and you can bet that will be a lot of people. On the flip side, Netflix’s side of the deals only make sense because they’re getting something in return, and good enough for them it’s something that will actually improve their profits. With more streaming movies and wider selections the company will have an even firmer grasp on the video renting market. And, even though they have 28 day delays for the 3 biggest Hollywood studios, they don’t have to wait that long to make every new DVD available, as they can still provide newly released DVDs from everyone else.

What is discouraging about the last bit of news is this: With the rental market slowly rising and DVD sales somewhat declining, is there any reason to assume that this is not because of the current recession? With less money to play with, of course people are going to forgo spending $20+ on a new DVD and spend $5, $6 or $7 on a rental instead. It’s smart consumerism, especially if you’re not head over heals for a particular movie or haven’t seen it before (regardless of what some people might think there are some people who have yet to see Avatar, so why should studios expect people who haven’t seen it to spend $20+ to own it?). If the studios decide to make up for their losses with DVD sales by creating a sales-only window after releases there could possibly be some serious consequences. Ma and Pa video stores, already barely getting by (as the switch from VHS to DVD nearly wiped them out as it is), would no longer be able to provide their hottest commodity, which is new releases. Most of these stores at this point get by through offering great selections and immediate service (as opposed to Netflix’s 2 to 3 days wait period), but any more hits to this small market and I fear they’ll start disappearing for good. Creating a sales-only window might help studios beat the current lull in DVD sales, but the lull is only temporary and the window’s possible effects could be permanent. It would be a step towards getting rid of all video rental stores period instead of just the one rental giant Blockbuster, which looks like it will soon file for Chapter 11.

"Bright Star," which was critically acclaimed, hasn't yet earned half its budget due to limited exposure

One of the biggest gripes people have – especially when watching the Academy Awards every year – is that they aren’t able to see many of the limited release films, particularly the ones that get great critical buzz. Even critics get irked about this (as no critic sees every movie that comes out). So how do we go about addressing this issue? My thought is that films that can’t afford widespread distribution to exhibitors (i.e. theaters) might want to start looking at the internet as a solution.

A number of people download movies illegally all the time, which we here at Movie-Thoughts obviously can’t condone, and many people watch streaming movies on Netflix every day; the point being that plenty of people are acclimated to watching movies on their computer, and that number of people continues to grow every day. So, step one of making sure there’s an audience for independent studios on the internet is covered.

Step two is identifying the benefits. What’s in it for these independent studios? Well for starters (and this is huge), exposure. Read the rest of this entry »