O P I N I O N Netflix — the exhibitor of the future? Danny Jeremiah, head of cinema products at Arts Alliance Media, cuts Netflix a little slack
I
T’S SAFE TO SAY “NETFLIX” hasn’t
place at the association, so it now has a seat at the top table.
been our favourite word for some time.
Subscriber growth is accelerating, but it will saturate
Look at controversy surrounding the
eventually. That — and a competitive market — limit Netflix’s
success of “Roma” at the Oscars; a film
ability to raise subscription prices. It means the company has
most exhibitors couldn’t program even
to explore areas outside its core business to achieve long-
if they wanted to break their own rules about the theatrical
term growth. Keeping in mind Netflix’s strengths and
window. But if there’s one topic debated more passionately
limitations, and CEO Ted Sarandos’ recent assertion that
recently, it’s Moviepass. For what was (initially) a rather large
“entertainment is what [they] do”, I foresee one logical path it
monthly fee, Moviepass let subscribers to attend unlimited
could take. By adding a cinema tier to subscription plans,
screenings at any big chain in the US, with no say from the
even if initially for Netflix originals only, it could remove those
exhibitors.
limitations. As the owner of the film rights, it would also share
There followed an at times farcical struggle to find what’s
in the box office revenue, a model Moviepass alluded to, but
known in the tech arena as “product-market-fit”. Moviepass
couldn’t accomplish. The prospect of another third party
raised and cut prices and modified terms on an almost daily
subscription scheme encroaching on the exhibitor’s territory
basis, trying to find a profitable sweet-spot. The business
may not appeal to all, but I don’t think the industry should
model’s long-term sustainability may be in doubt, but it did
fear an offering like this. The average adult goes to the cinema
demonstrate the appetite for a subscription ticketing model.
between 3 and 5 times per year. We should be pushing to
And who knows subscriptions better than Netflix? More than
increase that. If Netflix offers a new avenue to help achieve
148 million people worldwide subscribe to its streaming
this, it would be careless to discount its efforts.
service. In the US, market penetration is close to 50%. They know what audiences want arguably better than
My enemy’s enemy is my friend...?
traditional major studios. Netflix is creating and acquiring
As president of the National Association of Theatre Owners,
world-class content and uses data gathered through deep
John Fithian, noted at CinemaCon, “It’s great that people like
connections with its audiences to make informed decisions
to watch movies and television shows on Netflix, because
about stories it develops, in ways studios can’t yet replicate. It
people who love content love it everywhere.” Consumer
has 90 original feature films slated for 2019 with budgets,
habits are changing rapidly, something that digital natives
reportedly, up to $200m, which, if true, places them firmly in
like Netflix are well placed to act on. The only trends the
blockbuster territory. It’s also acknowledged that theatrical
cinema industry can trust to persist, and really invest in are
runs play an important part in the lifecycle of feature films.In
flexibility and adaptability, and there are worse partners than
January, the MPAA announced that Netflix would take Fox’s
Netflix to help them get there.
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21/05/2019 12:06
