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Netflix toying with financing movies, doing joint online/theater launches

  • Netflix (NFLX) content chief Ted Sarandos: "What we’re trying to do for TV, the model should extend pretty nicely to movies. Meaning, why not premiere movies on Netflix, the same day they’re opening in theaters? And not little movies ... Why not big movies? Why not follow the consumers’ desire to watch things when they want?."
  • Sarandos' comments come shortly after CFO David Well suggested on Netflix's Q3 CC (transcript) his company would keep an open mind on financing big-budget films.
  • If Netflix pushed ahead on this front, it would probably get some blowback from theater owners accustomed to nearly a 1-year window between theater and pay-TV launches for marquee films.
  • Earlier: Netflix reaches deal with CBS for Dexter
Comments (8)
  • Tvaddic
    , contributor
    Comments (251) | Send Message
     
    Why don't they just release the movies in theater, then release them on Netflix and DVD at the same time?
    28 Oct 2013, 07:57 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1706) | Send Message
     
    I don't think NFLX customers would mind paying even $20 a month if the service included movies on Netflix the same day they come out in theaters.

     

    Theaters will push back hard for sure....this is a threat to them. Why go to the theater and pay exorbitant prices on popcorn and an ICEE when I can sit in my home theater with a big flat-screen 3D LED HDTV?
    28 Oct 2013, 08:32 PM Reply Like
  • StepUp
    , contributor
    Comments (498) | Send Message
     
    Way to insult the movie studios Ted.
    28 Oct 2013, 09:09 PM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    More 'House of Cards' please
    28 Oct 2013, 09:21 PM Reply Like
  • D_Virginia
    , contributor
    Comments (2280) | Send Message
     
    The ancient business model of blockbuster movies being released in theaters is on its way out.

     

    Theaters add little value and have become a thoroughly unpleasant experience, a relic in the era of a big screen TV in most living rooms and high speed internet in most homes.

     

    Netflix may lead they way. If they can produce their own high quality series with A-list starts (like House of Cards), movies are the next logical step.
    28 Oct 2013, 09:29 PM Reply Like
  • Sakelaris
    , contributor
    Comments (1623) | Send Message
     
    The market should be big enough for a Netflix premieres for a few movies each year AND for retaining the traditional theater and DVD release patterns for most of the movies. .

     

    I remember when television was supposed to put an end to the idea of movie theaters. The theater experience survived because a lot of people wanted it. They will still want it.

     

    Additionally, Netflix should not push this online premiere thing too far, lest their deep-pocketed media competition try the same thing.
    28 Oct 2013, 10:04 PM Reply Like
  • dpaauw
    , contributor
    Comments (68) | Send Message
     
    D_Virginia, I agree. I used to live in Silicon Valley and going to a movie theater was an awful experience. Now I live in a semi-rural area and it's quite pleasant but the theater is usually only half full.
    I guess it's like flying coach; if it was pleasant, they didn't make money.
    As I understand, the theaters don't make much, if any, money on the ticket sales; they count on sales of drinks and snacks. I rarely have time to go to a movie but as of two years ago a ticket was about $7.
    So, assuming the $7 (probably more now) goes to the studio, NFLX
    would need to pay that much per viewer to the studio, steep.
    The only way around this, which is entirely probable, would be if
    NFLX could bring in more viewers than the theaters could. I'm
    pretty sure they would, so it might be affordable. It would depend on how many subscribers would be added just for this.
    If this happens, NFLX will do to theaters as they did to Blockbuster.
    Especially if they secure more than just first-run rights. Well, the pricing for follow-on viewing would be complicated, so never mind that.
    28 Oct 2013, 10:38 PM Reply Like
  • vireoman
    , contributor
    Comments (1068) | Send Message
     
    Wow, talk about disruptive technology. Reed does think big, and, really, why shouldn't this be the preferred means for watching movies in the future? Which means it likely will be.

     

    29 Oct 2013, 03:31 AM Reply Like
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