In Lee’s blog Netflix to premiere major motion picture in 2015, he touches on the game changing implementation of Netflix’s new deal with the Weinstein Brothers.
The rationale behind the transaction between Netflix and W.B can be translated simply to expansion of Netflix’s value propositions.
With direct online streaming of a cinematic movie on its site, Netflix is redefining how we watch films. Not only is Netflix revamping their value proposition of delivering high quality film and T.V shows to their current users, they are also reaching out to a broader customer segment. They are expanding their services to movie goers by offering an innovative way to enjoy film from the comfort in their bedrooms. Conversely, the actual experience and feeling of watching a movie in an actual theater vanishes and could potentially cause users to continue to watch movies conventionally in theaters. Additionally, the title of the movie will be the main determinant of the success. If Netflix lands a huge deal to stream an anticipated blockbuster film opposed to a low budget film, the success of this implementation will vary.
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