Netflix’s decision to screen the upcoming sequel to Crouching Tiger, Hidden Dragon on its website has caused uneasiness among numerous cinemas. The ability for viewers to stream the movie on Netflix has led to the objection for top movie theatres’ to release the movie in theatres. As a result, the movie will be available for the audience to watch on any smartphone or computer, and be able to watch whenever, wherever.
Movie theatre chains are obviously furious about Netflix’s decision. Top cinemas such as Regal Cinemas and Cinemark in the U.S. and Cineplex Entertainment in Canada, have refused to play “any movie ‘day and date’ in [their] theatres with any other windows”, as this action could negatively affect their business. Due to the first movie, Crouching Tiger, Hidden Dragon, doing extremely well, movie theatres were probably looking forward to playing its sequel in theatres. However, they believe that by releasing the movie online and in theatres on the same day, fans will most likely watch the movie in the comfort of their own home. Consequently, those who enjoy the theatre experience are also being affected by such monopolistic behaviour.
I understand the movie theatres’ reason to be upset as they are reducing their chances to gain more profits and attention from the audience through their screenings, especially for such a highly-anticipated movie. However, I believe Netflix’s choice to stream the movie is a good way of creating value for customers. Those who are already loyal customers of Netflix are gaining satisfaction as they are able to view the movie without any additional costs, thus making it unnecessary for fans to buy movie tickets. In addition, for those who greatly want to watch the movie but do not have a Netflix account will be forced to create an account and pay the $8 fee. However, once they have registered, it is likely for customers to keep the monthly subscription if they enjoy the streaming service, and even if they do not, they will most likely keep the subscription in hopes of watching movies in the future. Therefore, Netflix is maximizing customers’ satisfaction in both ways, while increasing their own profits.