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Out with the old. The Netflix-DreamWorks Animation deal signals an important change in the way...

Out with the old. The Netflix-DreamWorks Animation deal signals an important change in the way content is distributed, according to industry watchers The most important part of the deal is that it focus on exclusive fresh content for Netflix (NFLX +6.8%) from DreamWorks (DWA +4%) - instead of just filling up a library with older titles. The big picture: A bidding war for new films from Hollywood studios (LGF, SNE, VIA, CMCSA, DIS) could help the industry maximize profits. George Lucas and Steven Spielberg called it (I, II) last week when they predicted giant upheaval for the film industry.
Comments (5)
  • DIgitalMediaView
    , contributor
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    Agreed. This deal signals further escalation in original content production costs, which is clearly great for DWA and the studios. Hard to see how this is good for distributors like NFLX, with rising content costs a major threat to their marginal profitability.
    17 Jun 2013, 02:53 PM Reply Like
  • tiger8896
    , contributor
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    Lucas and Spielberg were actually predicting a doomsday scenario for the film business where nobody went to the movies anymore and theatres would close en masse and those that remained would be charging Broadway show prices of $100 a ticket. If that happens 95% of content will move to home distribution providers like HBO and Netflix. In a scenario like this Netflix will be a winner with the massive subscriber additions they'll get which should drive the stock price to the moon despite the rising content costs.

     

    That will be a sad day indeed when we can't go out for dinner and a movie with our wives or girlfriends. Movie theaters become another casualty of the internet revolution like book stores, newspapers, music and DVD stores.
    17 Jun 2013, 03:19 PM Reply Like
  • cjwarley
    , contributor
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    Hi, I'm a burgeoning producer developing six feature film projects, and as someone breaking in to the business, it's difficult to get a handle on what direction I should be heading, though I think I know.

     

    @tiger8896 -- It might be that in the near future you go for dinner AND a movie at the theatre! Who knows where this is going. By choice, the younger generation (I have adult children, who are part of the trend) watch almost exclusively downloaded movies and television series -- sometimes on their laptops, sometimes with their new computer-compatible big screen tvs. I think part of the appeal is the flexibility of viewing -- when they have time, stopping and starting as needed. I think they're missing out on a special movie experience that way -- you don't get as engrossed in an interrupted story on a small screen the way you do undistracted at the cinema, and you miss that shared viewing experience of being a part of the whole audience reaction -- but they're choosing that, and enjoying it, and their kids will grow up with that, too. Perhaps big screen viewing will become exotic again in a different way in the future. Perhaps glasses-free 3D in homes will make the difference, make it a "real" experience. There's definitely a movie revolution going on -- partly technology, partly lifestyle. Some of the choices are budgetary ones for the viewer, and if ticket prices rise to Lucas and Spielberg's predictions, it will become an elitist experience to go to the cinema, as it is for symphony, opera, ballet and live theatre. Interesting times -- some gains, some losses. We who love big screen cinema experiences are sad to see cinemas going under or under attended, but who can fight progress, right or wrong? And who knows what technology is coming down the road -- perhaps we'll soon have holographic experiences and BE part of the film! Interesting times, and as part of the industry, challenging to choose the right path.
    17 Jun 2013, 04:51 PM Reply Like
  • scott trader
    , contributor
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    Fwiw Three d entertainment systems tdey a tiny co based out of Florida can turn 2d into 3 d glasses free May 23 just hired a new CEO Clark Ortiz.. Also for mobile devices....
    18 Jun 2013, 12:14 AM Reply Like
  • scott trader
    , contributor
    Comments (4678) | Send Message
     
    If the content is good for big screens and 3d they will come...
    18 Jun 2013, 12:51 AM Reply Like
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