[opendtv] Netflix’s next move is to disrupt Hollywood’s biggest money maker
- From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Wed, 19 Jul 2017 11:12:26 -0400
Good luck with that!
As one movie industry supporter said in the article:
“Netflix is disrupting television, it's not disrupting the movie business.”
The reality is that Netflix is helping the content congloms make a small
fortune selling legacy TV content, and keeping all the studios in Hollywood
working overtime to produce their original content.
The proper comparison for Netflix is HBO, which became the leading premium TV
bundle using Hollywood movies and original content to attract subscribers. HBO
has put its toe in the theatrical release business, with little success; they
do quite well, however, with original movies to supplement their serialized
offerings like Game of Thrones.
But there is one huge difference between what the TV content congloms and
Hollywood are doing:
Netflix is a "not for profit" operation, like other Internet wunderkinds like
Amazon.
The content congloms and Hollywood have NEVER been more profitable.
So here we go again with the new Internet business model, based on what was
once considered to be a major anti-trust violation - predatory pricing.
Netflix said it will continue to spend increased capital towards content,
especially for its original programming, and that it expects its cash flow to
remain negative for "many years."
It will be interesting to take a look back in five years to see how this works
out for Netflix...
Regards
Craig
On Jul 19, 2017, at 8:57 AM, Monty Solomon <monty@xxxxxxxxxx> wrote:
Netflix’s next move is to disrupt Hollywood’s biggest money maker
https://www.washingtonpost.com/news/the-switch/wp/2017/07/18/after-shaking-up-tv-netflix-is-gunning-for-movie-theaters/
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