Posts Tagged ‘video on demand’

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.

Jonah Hill and John C. Reilly's "Cyrus" has been one of the recent indie successes

According to Pamela McClintock of Variety.com the “specialty sector”, or independent film market, has received a recent boost in box-office grosses thanks to releases like Mark and Jay Duplass’ Cyrus starring Jonah Hill, John C. Reilly, Marisa Tomei, and Catherine Keener, a documentary that follows the raising of several children from all over the world titled Babies, as we as several others.

President of Fox Searchlight Steve Gilula says that the recent (relative) success of these independent films are indicative that there “is life in the [indie] market, even as audiences are being more selective.” Some other examples of these films include City Island, Exit Through the Gift Shop, and The Girl with the Dragon Tattoo.

These indie successes hope to continue their theatrical and VOD runs, because as with any film the longer the run the more money they make. However, with word of mouth being the primary propellant of their runs such success is almost completely reliant on audience buzz, which is means these films’ futures are harder to predict than most.

One aspect that’s being tentatively attributed to these films’ financial achievements is how there are fewer large-market films being released during the Spring and early Summer months. Also consider the recent Warner Bros. flop Jonah Hex, for example, and it can be said that independent films have had less competition than usual.

The momentum that the “specialty sector” is building right now will be important for the current releases in creating Oscar buzz come Fall and Winter, as well as help later indie releases like Bill Murray and Robert Duvall’s Get Low, which will open July 30th, to do the same by holding the attention of audiences who may become distracted by bigger films such as Inception, Predators, Twilight: Eclipse, Salt, The Sorcerer’s Apprentice, and Tron.

Source: Variety