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Netflix continues disrupting traditional models

Netflix is moving on up from making its own TV shows to movies, and it wants to bring those movies to your home the same day they're released in theaters.

According to All Things D, Netflix is looking to disrupt the traditional box office model by creating its own major films and making them available in both theaters and your home at the same time rather than waiting weeks or months for a movie to leave the theater. 

Netflix already creates its own TV shows, such as "Orange is the New Black" and "House of Cards," and both are wildly successful. The shows are available on Netflix only, and falls outside of the typical television model where shows air weekly on a cable network. 

Over the summer, Netflix said it wanted to make a move into movies, like documentaries and stand-up comedy specials. Like the TV shows, these smaller-scale productions would debut on Netflix only. 


Now, Netflix wants to get into "big" movies that appear in theaters, but continue with its trend of offering the content on Netflix as well. And instead of making customers buy expensive box office tickets and go out to a theater, the movies will be available on Netflix at the same time as they appear in theaters (and not weeks later -- they would be released the same day). 

“What we’re trying to do for TV, the model should extend pretty nicely to movies," said Ted Sarandos, Netflix's content head. "Meaning, why not premiere movies on Netflix, the same day they’re opening in theaters? And not little movies — there’s a lot of ways, and lot of people to do that [already]. Why not big movies? Why not follow the consumers’ desire to watch things when they want?”

Many Hollywood studios would likely say Netflix is crazy. While they are coming up with new ways of getting movies from theaters to homes quicker, offering a Hollywood blockbuster at home the same day as it debuts in theaters likely won't be an option they'll consider anytime soon. Netflix will probably be on its own with this one. 

In fact, Netflix is still working on cable companies in an effort to have its app put on their set-top boxes. This has largely been an uphill battle, as cable companies remain skeptical of siding with the streaming giant whose aim is to change the way people consume entertainment. 

Source: All Things D



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RE: More power to them
By inperfectdarkness on 10/31/2013 3:53:03 AM , Rating: 2
I also support Netflix on this endeavor. Movie prices have gotten completely out of hand. I suspect that this will either bring new customers to Netflix (thereby increasing its clout) or it will drive down movie ticket prices. Either way, we the consumers, win.

This is the perfect age to try this new business model. Digitally streamed movies are the standard--which means that distribution is very cost-friendly. I don't really care about A-List actors--some of the best films I've seen recently are indy flicks...like Lions Gate. I don't really feel like paying a premium for Michael Bay or Nicholas Cage.


"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007














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