Netflix has infiltrated the lives of humans of every demographic: from toddlers who delight in Dora the Explorer, to teenagers who stream Gossip Girl while doing homework, to working citizens who follow their original productions like Orange is the New Black. After the success of such shows such as Orange is the New Black and the dark animated comedy, Bojack Horseman, an increasing amount of celebrities are more than willing to put their names on a Netflix production. It only makes sense that they dive into films as well. Their major point of difference that convinces studios to work with them is that they provide more freedom in terms of production. Less guidelines to follow means more artistic liberty and the opportunity to produce something that has been turned down by, for example, Lionsgate.
Source: http://www.forbes.com
Their newest partner, the Weinstein Company, will be collaborating on the production of the sequel to Hidden Dragon, Crouching Tiger. This will debut on the Netflix site, available to all subscribers, and in select IMAX theatres. Their announcement was well received by the public, however AMC Theatres and Wanda Cinema are skeptical towards Netflix as a production company and they have demonstrated their distaste for showing a Netflix film in their theatres. Their lack of enthusiasm will only feed to the success of Netflix and the Hidden Dragon, Crouching Tiger team. For those who wish to see the sequel to a classic, they may either subscribe to the online service or they already are a member. It is believed that this release will revolutionize the film industry as a whole.
Although Netflix has minimal transparency in regards to viewership numbers, it is clear that their strategies are working. Under Porter’s Generic Strategies, Netflix falls in a similar category as Wal-Mart: low cost and broad market. The addition of original movies to their already broad market will prove to be successful, considering the quality of work they have done in the past with the original series. Consumers will then be further incentivized to purchase the low-cost subscription for their service, and become less and less likely to go out and spend more cash to enter physical theatres. The tradition of hitting the theatres on a Friday night is quickly being replaced by nights on the couch streaming an old favourite. Now you can soon stream new movies in the comfort of your own home.
The state of the film industry: revolutionized by Netflix.