|Big budget productions continue to be the future for Netflix, and it is apparent from the latest awards season that Netflix has just gotten more drive to work on movies like “The Irishman” and “Marriage Story,” as well as “The Two Popes” / Photo by: Pikrepo|
Big budget productions continue to be the future for Netflix, and it is apparent from the latest awards season that Netflix has just gotten more drive to work on movies like “The Irishman” and “Marriage Story,” as well as “The Two Popes,” three original movies that received unprecedented Oscar recognition. Granted, two of them were helmed by some of the greatest directors of all time, but the quality that they have could not be denied, and so is the fact that Netflix can hold its own against the competition.
However, while Netflix is enjoying its day in the sun, their disruption in the film industry is causing some problems.
The Box Office Effect
Streaming is becoming the future for many of us who are now on subscriptions, and it’s a more forgiving time now for people who love watching and rewatching their favorite shows, but Netflix’s foray into the film industry is causing mixed success records from the box office.
To explain this, American business magazine Inc.com states that the trouble with Netflix’s effect on the Box Office is mixed in a sense that while the revenue of the box office in North America has climbed over the decade and peaked in 2018 with an all-time high of $11.9 billion, that’s only because movie theaters price tickets based on inflation.
So when one looks at the number of tickets sold, the grim picture comes to light.
According to data from The Numbers, the number of tickets has only continued on a downward trend. It’s not helped by the fact that Netflix is so much cheaper than going to the cinema for a year. Kurt Cagle, CTO of the Semantic Data Group, compared going to the cinema for a year and investing in a TV to watch Netflix instead:
“A family of four will typically spend $100 to go to a movie. To put that into perspective, not going to see a dozen movies a year would pay for a home theater system with a 55” TV and surround sound, plus the cost of the streamed movies and popcorn.”
|Streaming is becoming the future for many of us who are now on subscriptions, and it’s a more forgiving time now for people who love watching and rewatching their favorite shows, but Netflix’s foray into the film industry is causing mixed success records from the box office / Photo by: Bryan Gosline via Wikimedia Commons|
The only reason people actually even go out to the movies these days is the fact that there’s still a window of time when movies are usually only available in cinemas and not anywhere else. Netflix knows this most of all, considering they started with licensing films first before they decided to get in on the action and start producing original content.
Already Netflix has poured in $15 billion on content, yet more proof that they are really dedicated to breathing life into this decision.
Original content is prized, and Netflix is ready to change its business model because it knows that this will be the way things would be moving forward. With Netflix investing in original content and movies that they themselves will make available on their platform in short order, they will be able to cash in on what little money that movie theaters get from their movie tickets.
The success of “The Irishman” provided Netflix with exactly what they need to stay in everyone’s radar. So much so that even though Netflix now has more competition than ever -- and surely there will be more to come -- it is still confident in its own production.
Netflix content chief Ted Sarandos told financial news and literacy website The Street to expect big things from the platform from now on, because that $15 billion budget is already being utilized to work with the best that Hollywood can give.
He told The Street, “You’re going to see us working across all genres like we did in Q4 and still continuing to kind of press up the production quality, the production investment in these films.”
What Sarandos means is that Netflix isn’t afraid of stepping out and carving their place in the industry, because recently, Sarandos even revealed that they will be working with Mark Wahlberg, Charlize Theron, and Chris Hemsworth in a new film, as well as producing more “young-adult focused films.”
Animation, Reputation, and Other Strengths
Netflix has always been known to invest in what their audience wants to see. It’s a little like marketing, in a way, since Netflix has the ability to conduct what is technically market research, observing which shows are talked about and following dynamic trends by seeing straight away what people want to see in their shows.
For example, Netflix has noticed that they can play to their strength in animation. The Street also reported that Netflix will be emphasizing its animated productions. Aside from animation, audiences these days also like viewing shows that are catered to them, which is why Netflix is winning big encouraging more diversity in their projects, both behind the scenes and on the surface.
Not to mention the fact that Netflix has started in the streaming industry before any other service had managed to give them a headstart and a reputation to match. Actors and executives trust Netflix, something that new streaming services are just beginning to get for themselves.
CEO Reed Hastings of Netflix said, “The business benefit is that we will win deals that we would’ve otherwise won for incredibly entertaining content. So, think of all our awards work as a really smart way to make us the best home for talent in the world.”
|Netflix has always been known to invest in what their audience wants to see / Photo by: Matthew Keys via Flickr|
For some talent, however, the box office is not everything.
Take Robert Pattinson for example who, according to Cinema Blend, is an actor that never quite got all the buzz around big-budget films, even though he himself will be starring in one soon enough. He remains firm with his belief that blockbuster films’ “win or lose” moments before the results are in has never really drawn him into it.
He told the movie news website:
“You can see quite a lot of examples of it not really working out for people, so I just thought it would be a silly idea to try to do a massive action movie or something. I always think that whatever movie you’re doing, there’s a potential that it’s the last movie you’re ever going to get, and so I don’t want to end my career on a ‘transitional’ movie.”