Netflix Inc., an American supplier of on-demand Internet streaming media is once again ruffling the feathers of the entertainment industry. For the first time, the company is partnering with a major motion picture studio to release a feature film. Challenging the norms of the film industry, Netflix is releasing a sequel to the popular 2000 movie “Crouching Tiger, Hidden Dragon”. They plan on releasing the film both in theaters and on its own platform simultaneously.
This is not the first time Netflix has re-positioned themselves in the entertainment industry. Founded in 1997, the company originally ran a DVD-by-mail service in the United States, where customers would pay a flat fee every month and would be mailed DVDs they request. In 1999, the began their digital distribution of media, and their streaming service has since put dvd rental retailers such as Blockbuster out of service. As society began to lean towards a digital age, Netflix re-positioned into the market of digital streaming, which has left them highly successful.
Netflix is constantly changing their value proposition. In a move that upset the television industry, the company released entire seasons of a show at once, rather than the usual serialized method. In a similar fashion, Netflix’s latest endeavor of simultaneous release of a film through theatrical release and digital streaming has upset the film industry.
Netflix’s innovation is the future. As consumers are leaning towards a more digital lifestyle, older companies are left with an ultimatum: follow the innovation, or follow Blockbuster and the dinosuar, to extinction.
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