How have the streaming wars impacted the film industry? What does the
increased competition from streamers mean for filmmakers? And what does it mean
for audiences? Limit: 7 responses
In today’s digital age, streaming has largely influenced the film industry in ways that it could not have foreseen 20 years ago. Gone are the days of making a day of going to the movies, as consumers would rather watch new and old movies within the comfort of their own homes. What streaming services give consumers the unique ability to do is to pause or abandon movies that they don’t like, something they cannot do or would not be so apt to do, in a traditional movie theatre.
One impact that streaming services have done to the film industry is allowing film directors and creators to produce films across different streaming platforms, instead of being tied down to a certain studio. For example, director Stephen Soderbergh’s film The Laundromat” is featured on Netflix, The Report (produced by Soderbergh) is on Amazon Prime Video, as well as future films slated to be released on HBO Max (Zeitchik, 1). Historically (before streaming services), Hollywood film studios “ sought to steer clear of other companies’ talent... out of a sense of both rivalry and good business” (Zeitchik, 1). Soderbergh is a perfect example of this idea crumbling: Hollywood film studios can no longer tie down their creative talent to their specific studio and directors, producers, etcetera can make films freely between rival streaming giants.
A consequence of having the creative minds behind films have free range across streaming competitors is that there is a sense of “overlap culture” across platforms. This “overlap culture is “born of desperation on the part of companies — new players but also traditional firms — who feverishly want to ensure they have brand names to market to consumers barraged by entertainment choices” (Zeitchik, 1). Basically, streaming platforms are flocking to “brand name” producers to pump out content on their platform, and the overall market starts to look the same across the board.
That being said, streaming platforms (especially larger ones like Netflix and Disney+), have lots of dispensable money, meaning that films that could not otherwise be made or are having financial woes, can be made. For example, the film The Irishman racked up a budget of 150 million, a number Paramount refused to meet, but Netflix obliged and funded it. Director Martin Scorsese “[we] just couldn’t get the backing for years” and “ ultimately it was Ted Sarandos and everyone at Netflix said, ‘Go for it’” (Zeitchik, 1). One could say that Netflix took a gamble giving away 150 million, but the film garnered 10 Oscar nominations and overall generated award season buzz (Mcnary, 1). Although The Irishman did not win any Academy Awards, the film served as a perfect example of what a streaming platform can do for filmmaking and the trove of talent flocking to create films and television shows on streaming platforms.
Works Cited:
McNary, Dave. “Oscars: 'The Irishman' Strikes Out as Netflix Nets Two Wins.” Variety, 10 Feb. 2020, variety.com/2020/film/news/the-irishman-oscar-snub-netflix-1203496060/.
Zeitchik, Steven. “How Netflix Could Disrupt the World of High-End Film with 'The Irishman'.” The Washington Post, WP Company, 27 Sept. 2019, www.washingtonpost.com/business/2019/09/27/netflix-seeks-disrupt-world-high-end-film-with-irishman/.
Zeitchik, Steven. “The Disney Plus Launch Ratchets up Talk of Streaming Competition. But the Same Creators Work for All of Them.” The Washington Post, WP Company, 12 Nov. 2019, www.washingtonpost.com/business/2019/11/12/streaming-services-are-multiplying-same-producers-directors-actors-work-all-them/.
Over the past few years we have seen an immense increase of streaming services. It seems as though everyone is trying to hop on the bandwagon. We have Netflix, Hulu, Disney +, the list goes on and the scary part is that that list is going to keep increasing. Who is this scary for? The consumer or film industries? A little bit of both! The consumer will have too many subscriptions to keep track of but that’s not what I want to talk about today. I want to talk about how the film industry is reacting to all these new streaming services. Are they thriving or treading water? One of the biggest things that has changed in the past 20 years is the respect of one company to another. In the past, most companies would respect one another and not steal actors or actresses from another company. According to an article written by Steven Zeitchik “Hollywood studios historically have sought to steer clear of other companies’ talent.” Now, it is more or less a free for all, whoever pays the big bucks get the big names. In this same article, he talks a lot about “overlap culture”. A lot of this has to do with these big-name directors or actors going from one film company (platform) to another. One person can only have so many different ideas so If you end up having one director producing different movies on different platforms they may seem pretty similar. (Zeitchik 1) Another interesting thing that we have been seeing over the years is a collaboration for streaming services and film companies. For example, Warner Bros has partnered with HBO Max. In this article written by Kim Masters they call the collaboration a “unique joint venture”. Personally, when I see this happening it makes me think that the film companies are trying to desperately keep with the times and they need to do all they can to stay afloat. Perhaps it could be the streaming service just trying ot get more experience on board but I’m not sure if I buy that. In the deal, it says “film studio (Warner Bros) that will produce up to 10 movies a year for the new streaming service (HBO Max)”. Ten movies a year?! That’s a lot! It makes you question the amount of creativity and originally the movies will have, only time will tell. (Masters) The last thing I want to talk about is money. Big film industries used to have a lot of money, almost as much as big streaming services have today. Netflix is in debt however its budget for some of these movies is mind boggling. Netflix just recently came out with a movie about the “teamsters” gang. This movie was titled “The Irishman” and it was LOOOONG like really long. This is a movie that would never have been available in theaters. The amount of money they would’ve had to give out to air a 3-and-a-half-hour movie in theaters would’ve been too much for them. however, these streaming services don’t have to worry about that. The budget for the movie was 150 million dollars. According to a different article written by Steven Zeitchik, ““We just couldn’t get the backing for years,” Scorsese told reporters after the screening. “And ultimately it was Ted Sarandos and everyone at Netflix,” he said, referring to Netflix’s chief content officer. “They said, ‘Go for it.’” Scorsese works for paramount. This quote shows that even the biggest names didn’t have the budget for these movies. It will be interesting to watch the film industries over the next few years. Only time will tell if they can stay afloat. (Zeitchik 2)
Work Cited: Masters, Kim. “With Warner Bros. and Warner Max, Is AT&T Setting Up a Sibling Rivalry?” The Hollywood Reporter, 13 Feb. 2020, www.hollywoodreporter.com/news/warner-bros-warner-max-is-at-t-setting-up-a-sibling-rivalry-1278846?utm_source=Sailthru&utm_medium=email&utm_campaign=THR's Today in Entertainment_2020-02-12 07:05:00_aweprin&utm_term=hollywoodreporter_tie. Zeitchik, Steven 1. “How Netflix Could Disrupt the World of High-End Film with 'The Irishman'.” The Washington Post, WP Company, 27 Sept. 2019, www.washingtonpost.com/business/2019/09/27/netflix-seeks-disrupt-world-high-end-film-with-irishman/. Zeitchik, Steven 2. “The Disney Plus Launch Ratchets up Talk of Streaming Competition. But the Same Creators Work for All of Them.” The Washington Post, WP Company, 12 Nov. 2019, www.washingtonpost.com/business/2019/11/12/streaming-services-are-multiplying-same-producers-directors-actors-work-all-them/.
With the start of a new decade, the streaming wars are now in full effect. Not only that, but streaming platforms have been eating away at cable subscribers and recruiting them into the new world of streaming. This has hurt cable companies of the years and now these streaming platforms might be on their way to becoming detrimental to another industry, film.
The primary reason why most people choose to get subscriptions to streaming services like Netflix, Disney+ and Hulu is because as the consumers, they get to hold a lot more of the “power”. Users get to choose when they want to watch a show, how quickly they catch up on a show, what they want to watch in general and have access to lots of older content they once enjoyed. Although this could hurt television networks, they still end up doing relatively well because they have advertisements.
Although it seems as though cable companies have been able to somewhat stay afloat amid the streaming wars, that simply isn't the case for the film industry. According to Variety.com, the “[National Association of Theatre Owners] reported that U.S. movie admissions slid 4.6% last year to 1.24 billion” (McNary 2020). Part of these numbers have a lot to do with the type of content that was being released which were primarily original films such as Knives Out, Ford v. Ferrari, Beautiful Day in the Neighborhood and Queen & Slim” (McClintock 2020). For the first time in a while these theaters had reached the older demographic they had been missing, the audience was over 35. There was also one sequel film that had also been released into theaters that was just as successful last year and that was Frozen 2.
Although these films helped to save the box-office, there was one film that was made for the big screen, but as instead released on the streaming platform Netflix, The Irishman. Pivitol Research Group Founder Jeff Wlodarczak stated ““The problem for the theaters is that if they don’t carry the Netflix big-budget movie slate they are effectively pushing consumers to increasingly expect to get first-run big-budget content in their homes or on their personal devices”(Wlodaeczak 2020). This means that movie theaters are missing out on possible tickets sold, but also might not be the best for the actual filmmakers because a majority of the money made from films is through the box office. A Hollywood analyst that goes by the name “Entertainment Strategy Guy” made a breakdown of his own model that might suggest just how much Netflix might have made just from streaming for The Irishman. He estimated that the film most likely “made” “$32.5 million for Netflix from U.S. accounts, plus an additional $5.4 million from international accounts” based on about 25% of Netflix accounts watching (Metz 2020). This means that although the film was given good reviews, Netflix still lost a lot of money.
Overall, with movie tickets becoming more and more expensive and people not seeing the value in going to the movie theater anymore, streaming platforms might be able to bank on people preferring to hold that power again. Being able to watch a 3hr film on your own time, from your home will always seem to be the better option to consumers. People might choose to opt into making subscriptions to watch films that debuted in theaters, a little later after everyone which could really hurt box office sales.
McClintock, Pamela. “How Original Films Saved the Thanksgiving Box Office.” The Hollywood Reporter, 2 Dec. 2019, www.hollywoodreporter.com/news/how-knives-original-films-saved-thanksgiving-box-office-1258569?utm_source=Sailthru&utm_medium=email&utm_campaign=THR%27s%2BToday%2Bin%2BEntertainment_2019-12-02%2B07%3A03%3A00_aweprin&utm_term=hollywoodreporter_tie. McNary, Dave. “U.S. Movie Admissions Plunge 4.6% in 2019 Amid Box Office Decline.” Variety, 18 Jan. 2020, variety.com/2020/film/news/box-office-u-s-movie-admissions-decline-1203471592/. Tavernise, Niko. “Netflix vs. Cinema: How a Disruptive Streaming Service Declared War on Hollywood.” New Atlas, 21 Nov. 2019, newatlas.com/home-entertainment/netflix-disruptive-streaming-hollywood-cinema-exhibition-war/. Zeitchik, Steven. “How Netflix Could Disrupt the World of High-End Film with 'The Irishman'.” The Washington Post, WP Company, 27 Sept. 2019, www.washingtonpost.com/business/2019/09/27/netflix-seeks-disrupt-world-high-end-film-with-irishman/.
The formula used to be simple for making a successful mainstream film: create your vision and compete with the films that are in theaters at the same time as your film. Though Michael Bay-esc explosions and larger than life franchises have always dominated the cinema, there was always room for obscure, lesser known films in theaters. For decades, the movie business has been dominated by studios who decided what they wanted and got it. Nobody had any other choice. Enter streaming. Netflix began by recycling movies that were made by large studios to attract customers. Fast forward a few years, Netflix began making their own original movies. These were simple films, not to compete with big studio films, but to strengthen Netflix’s value proposition. Today, this is not the case. Netflix is making 50, 60 even recently a 100-million-dollar film. In an interview with University of Pennsylvania’s school of Business, writer Ben Fritz explains how Netflix has successfully snuck up on the major Hollywood studios and how they will only increase their threat to the rest of the industry. “[Netflix is] moving up. They’re making Adam Sandler comedies. These are $50 million, $60 million movies. They just made this Will Smith film Bright that was almost $100 million. They’re getting into the lower-upper or upper-mid budget films, the sort of star vehicles that used to be the bread and butter of studios. They’re increasingly overtaking the lower to middle chunks of the film business and leaving only the upper echelon in terms of cost to the studios.” (Knowledge@Warton). It was clear from the start that a company specializing in renting movies would eventually make their own originals if they became successful enough. However, I don’t think that anyone actually expected Netflix to grow this fast and this large. What does it mean for filmmakers? First off, studios are only starting to feel threatened by streamers. The real blow over the last few years has been dealt to the ones who could least afford to compete with a giant: the independent and small budget filmmakers. That means that the franchises like The Avengers and Star Wars are fine. That’s because they offer more than just a movie. They offer a brand as well. This will need to be common for successful studio films in the future. It’s not just about what the movie has to offer, it’s about what the franchise can offer long term. Since 2002, box office ticket sales have significantly declined, with ticket sales dropping a whole 4.6% in 2019, (McNary). Most money that large films make are not made in the theater. They’re made with large brand deals. I think that this could mean we will see more small films that sacrifice creativity and uniqueness for marketability and accessibility. This is a huge sacrifice for indie filmmakers to make, but it could be the only way to make money.
Ultimately, the streaming wars is all about the viewers. It gives them infinitely more power than they’ve ever had before. Previously, the only choice that a viewer could make was whether they wanted to see a movie in theaters or wait until it came to DVD. They had limited choice as to what they were watching and each person was really just a statistic in the box office numbers. Now, audiences have real power. They can watch what they want, when they want, how they want. Cinemas are scared. According to Paul Bond of the Hollywood reporter, it’s not about the appeal of theaters, which have added reclined seats, video games and dining options. It’s also about making it easier and more practical for potential viewers to buy tickets, (Bond). This includes memberships, package deals and even sometimes, taking a page from Netflix’s book, subscriptions.
Bond, Paul. “Games in Movie Theaters? Experiments Seek to Fend Off Streaming Threats.” The Hollywood Reporter, 23 Feb. 2018.
McNary, Dave. “U.S. Movie Admissions Plunge 4.6% in 2019 Amid Box Office Decline.” Variety, 18 Jan. 2020.
“Can Hollywood Survive Streaming Services?” Knowledge@Wharton, 4 May 2018, knowledge.wharton.upenn.edu/article/can-hollywood-survive-streaming-services/.
In the past 10 years or so, the streaming industry and SVOD services have exploded onto the scene. With services like Netflix and Hulu leading the way for streaming services and showing consumers this new way to consume their media. The success that these companies had showed that there was so much potential to be had in the streaming world. With new players like Disney+, HBO Max, and Peacock coming onto the scene it has given way to what people are calling the streaming wars. These streaming wars are pinning all of the companies against each other and many people are wondering whether or not they will all stand the test of time. Will they all be able to succeed? Will some overpower others and therefore boot them out of the streaming service wars? The biggest question I think that we will have to answer in the next few years is how will these streaming services impact the film industry? We have seen it with movies like Irishman that was not released in theaters, but only on Netflix and it saw tremendous success.
I think the biggest plus side for putting movies on streaming services is they have a bigger budget for the most part. For example, in the Irishman the budget was massive so it benefitted from being on Netflix. In the article How Netflix could disrupt the world of high-end film with ‘The Irishman’ the author says, His new movie both illustrates the challenge Netflix faces in advancing its model and the reasons it’s become so powerful in the first place. “The Irishman” was a work that began its development life as a conversation between Scorsese, De Niro, producers and Paramount 12 years ago. But the Viacom-owned studio began balking at the budget, which involved more than 115 locations and an expensive “de-aging” technology designed to make stars look younger. Eventually, costs sailed into the $150 million range. That put it within reach only of Silicon Valley disrupters, who are concerned more with building a brand and subscriber base, and care less that every film must break even.” (Zeitchik 1). I think this shows the true benefit that streaming services have over the film industry.
I think another quote that supports this point is another article written by the same author where it was quoted, “We just couldn’t get the backing for years,” Scorsese told reporters after the screening. “And ultimately it was Ted Sarandos and everyone at Netflix,” he said, referring to Netflix’s chief content officer. “They said, ‘Go for it.’” Scorsese works for paramount.” (Zeitchik 2). I think these quotes are the perfect example that streaming is truly the future and only time will tell how it will play out, but I expect many more films to be released via SVOD services in upcoming years.
Works Cited Zeitchik, Steven 1. “How Netflix Could Disrupt the World of High-End Film with 'The Irishman'.” The Washington Post, WP Company, 27 Sept. 2019, www.washingtonpost.com/business/2019/09/27/netflix-seeks-disrupt-world-high-end-film-with-irishman/. Zeitchik, Steven 2. “The Disney Plus Launch Ratchets up Talk of Streaming Competition. But the Same Creators Work for All of Them.” The Washington Post, WP Company, 12 Nov. 2019, www.washingtonpost.com/business/2019/11/12/streaming-services-are-multiplying-same-producers-directors-actors-work-all-them/.
Marie Badio MSS 495 With the increasing rise of streaming platforms in the past five years it was inevitable to have an impact on the film industry. Currently subscribers and their friends and family will prefer to curl up on the couch with wine and beer than to drive out to the movie theater. According to Dave McNary for Variety Magazine, “The NATO report also showed that the biggest demographic jump in North American moviegoing took place in the under 10 group, with the share increasing from 6.1% to 7.5% of the total box office. Gains also came in the 10-12 group, up to 4.8% from 4.2%; the 18-24 group, rising from 26.2% to 27.2%; and the 24-34 group, going from 21% to 23.3%. The 35-44 demographic saw the biggest decline, dropping from a 16.1% share to 14.5% (McNary). Going to the movies has lost a lot of its appeal to 35+ demographic who would rather gather in a home they pay rent on then teenagers and young adults who still enjoy getting dressed and the social interaction outside of where they dwell. Or teenagers and young adults in undergrad or grad school are not going to have gatherings in their small bedrooms, dorm rooms or apartments because they simply may not have the space. Filmmakers and streaming platforms have recognized the shift of movie viewing habits and are releasing new original content directly to streaming services like Netflix. Jeff Bock of Exhibitor Relations commented that, "Original films just came back in a big way. Hollywood needs to seize this momentum and keep dishing out midrange, adult content,". "If they stop doing that, they will lose out on all the best talent that is already gravitating toward streaming" (Hollywood Reporter). Netflix has released several popular adult and award nominated hits from film directors, which include Tyler Perry’s “A Fall From Grace”, Martin Scorsese’s “Irishman”, and Noah Baumbach’s “The Marriage Story” which feature high profile actors, and recently Netflix released trailers for new films including Spencer Confidential with Mark Whalberg. As Wall Street analyst Richard Greenfield put it “I think The Irishman and Marriage Story got seen by far more people on Netflix than they would have in theaters” (Hollywood Reporter). I wonder with the new demand for platforms to draw in subscribers with original content will directors need to have their films seen or have huge box office numbers? New streaming platforms HBO Max and Disney+ and established streaming platform Netflix are already on board to create movies for adults that are not going to the theatres and have a large library of existing media to satisfy their subscribers who want to stay home. I feel it’s a win for both consumers and companies that cater to preferred streamers because they will be able to hold on to current subscribers and attract new subscribers. Netflix has a created a culture that you simply need a device and Internet and you can enjoy time at home alone or with people without rude people on their phones or talking to others.
According to Morgan Blake for FORBES Magazine, “Netflix affects many industries, but the greatest impact is felt in film and TV. Netflix’s content is put right in front of customers for easy marketing. Netflix recently made a move into the independent film category, where traditional movies in theaters typically face an uphill battle being seen. Now, even small films can easily be seen on Netflix (Blake). In the next five years the numbers for movie goers will continue to decrease while streaming platforms who conform to the trend will increase and survive the streaming wars.
John McMahon
ReplyDeleteMSS 490
In today’s digital age, streaming has largely influenced the film industry in ways that it could not have foreseen 20 years ago. Gone are the days of making a day of going to the movies, as consumers would rather watch new and old movies within the comfort of their own homes. What streaming services give consumers the unique ability to do is to pause or abandon movies that they don’t like, something they cannot do or would not be so apt to do, in a traditional movie theatre.
One impact that streaming services have done to the film industry is allowing film directors and creators to produce films across different streaming platforms, instead of being tied down to a certain studio. For example, director Stephen Soderbergh’s film The Laundromat” is featured on Netflix, The Report (produced by Soderbergh) is on Amazon Prime Video, as well as future films slated to be released on HBO Max (Zeitchik, 1). Historically (before streaming services), Hollywood film studios “ sought to steer clear of other companies’ talent... out of a sense of both rivalry and good business” (Zeitchik, 1). Soderbergh is a perfect example of this idea crumbling: Hollywood film studios can no longer tie down their creative talent to their specific studio and directors, producers, etcetera can make films freely between rival streaming giants.
A consequence of having the creative minds behind films have free range across streaming competitors is that there is a sense of “overlap culture” across platforms. This “overlap culture is “born of desperation on the part of companies — new players but also traditional firms — who feverishly want to ensure they have brand names to market to consumers barraged by entertainment choices” (Zeitchik, 1). Basically, streaming platforms are flocking to “brand name” producers to pump out content on their platform, and the overall market starts to look the same across the board.
That being said, streaming platforms (especially larger ones like Netflix and Disney+), have lots of dispensable money, meaning that films that could not otherwise be made or are having financial woes, can be made. For example, the film The Irishman racked up a budget of 150 million, a number Paramount refused to meet, but Netflix obliged and funded it. Director Martin Scorsese “[we] just couldn’t get the backing for years” and “ ultimately it was Ted Sarandos and everyone at Netflix said, ‘Go for it’” (Zeitchik, 1). One could say that Netflix took a gamble giving away 150 million, but the film garnered 10 Oscar nominations and overall generated award season buzz (Mcnary, 1). Although The Irishman did not win any Academy Awards, the film served as a perfect example of what a streaming platform can do for filmmaking and the trove of talent flocking to create films and television shows on streaming platforms.
Works Cited:
McNary, Dave. “Oscars: 'The Irishman' Strikes Out as Netflix Nets Two Wins.” Variety, 10 Feb. 2020, variety.com/2020/film/news/the-irishman-oscar-snub-netflix-1203496060/.
Zeitchik, Steven. “How Netflix Could Disrupt the World of High-End Film with 'The Irishman'.” The Washington Post, WP Company, 27 Sept. 2019, www.washingtonpost.com/business/2019/09/27/netflix-seeks-disrupt-world-high-end-film-with-irishman/.
Zeitchik, Steven. “The Disney Plus Launch Ratchets up Talk of Streaming Competition. But the Same Creators Work for All of Them.” The Washington Post, WP Company, 12 Nov. 2019, www.washingtonpost.com/business/2019/11/12/streaming-services-are-multiplying-same-producers-directors-actors-work-all-them/.
Ryan Fargo
ReplyDeleteOver the past few years we have seen an immense increase of streaming services. It seems as though everyone is trying to hop on the bandwagon. We have Netflix, Hulu, Disney +, the list goes on and the scary part is that that list is going to keep increasing. Who is this scary for? The consumer or film industries? A little bit of both! The consumer will have too many subscriptions to keep track of but that’s not what I want to talk about today. I want to talk about how the film industry is reacting to all these new streaming services. Are they thriving or treading water?
One of the biggest things that has changed in the past 20 years is the respect of one company to another. In the past, most companies would respect one another and not steal actors or actresses from another company. According to an article written by Steven Zeitchik “Hollywood studios historically have sought to steer clear of other companies’ talent.” Now, it is more or less a free for all, whoever pays the big bucks get the big names. In this same article, he talks a lot about “overlap culture”. A lot of this has to do with these big-name directors or actors going from one film company (platform) to another. One person can only have so many different ideas so If you end up having one director producing different movies on different platforms they may seem pretty similar. (Zeitchik 1)
Another interesting thing that we have been seeing over the years is a collaboration for streaming services and film companies. For example, Warner Bros has partnered with HBO Max. In this article written by Kim Masters they call the collaboration a “unique joint venture”. Personally, when I see this happening it makes me think that the film companies are trying to desperately keep with the times and they need to do all they can to stay afloat. Perhaps it could be the streaming service just trying ot get more experience on board but I’m not sure if I buy that. In the deal, it says “film studio (Warner Bros) that will produce up to 10 movies a year for the new streaming service (HBO Max)”. Ten movies a year?! That’s a lot! It makes you question the amount of creativity and originally the movies will have, only time will tell. (Masters)
The last thing I want to talk about is money. Big film industries used to have a lot of money, almost as much as big streaming services have today. Netflix is in debt however its budget for some of these movies is mind boggling. Netflix just recently came out with a movie about the “teamsters” gang. This movie was titled “The Irishman” and it was LOOOONG like really long. This is a movie that would never have been available in theaters. The amount of money they would’ve had to give out to air a 3-and-a-half-hour movie in theaters would’ve been too much for them. however, these streaming services don’t have to worry about that. The budget for the movie was 150 million dollars. According to a different article written by Steven Zeitchik, ““We just couldn’t get the backing for years,” Scorsese told reporters after the screening. “And ultimately it was Ted Sarandos and everyone at Netflix,” he said, referring to Netflix’s chief content officer. “They said, ‘Go for it.’” Scorsese works for paramount. This quote shows that even the biggest names didn’t have the budget for these movies. It will be interesting to watch the film industries over the next few years. Only time will tell if they can stay afloat. (Zeitchik 2)
Work Cited:
DeleteMasters, Kim. “With Warner Bros. and Warner Max, Is AT&T Setting Up a Sibling Rivalry?” The Hollywood Reporter, 13 Feb. 2020, www.hollywoodreporter.com/news/warner-bros-warner-max-is-at-t-setting-up-a-sibling-rivalry-1278846?utm_source=Sailthru&utm_medium=email&utm_campaign=THR's Today in Entertainment_2020-02-12 07:05:00_aweprin&utm_term=hollywoodreporter_tie.
Zeitchik, Steven 1. “How Netflix Could Disrupt the World of High-End Film with 'The Irishman'.” The Washington Post, WP Company, 27 Sept. 2019, www.washingtonpost.com/business/2019/09/27/netflix-seeks-disrupt-world-high-end-film-with-irishman/.
Zeitchik, Steven 2. “The Disney Plus Launch Ratchets up Talk of Streaming Competition. But the Same Creators Work for All of Them.” The Washington Post, WP Company, 12 Nov. 2019, www.washingtonpost.com/business/2019/11/12/streaming-services-are-multiplying-same-producers-directors-actors-work-all-them/.
With the start of a new decade, the streaming wars are now in full effect. Not only that, but streaming platforms have been eating away at cable subscribers and recruiting them into the new world of streaming. This has hurt cable companies of the years and now these streaming platforms might be on their way to becoming detrimental to another industry, film.
ReplyDeleteThe primary reason why most people choose to get subscriptions to streaming services like Netflix, Disney+ and Hulu is because as the consumers, they get to hold a lot more of the “power”. Users get to choose when they want to watch a show, how quickly they catch up on a show, what they want to watch in general and have access to lots of older content they once enjoyed. Although this could hurt television networks, they still end up doing relatively well because they have advertisements.
Although it seems as though cable companies have been able to somewhat stay afloat amid the streaming wars, that simply isn't the case for the film industry. According to Variety.com, the “[National Association of Theatre Owners] reported that U.S. movie admissions slid 4.6% last year to 1.24 billion” (McNary 2020). Part of these numbers have a lot to do with the type of content that was being released which were primarily original films such as Knives Out, Ford v. Ferrari, Beautiful Day in the Neighborhood and Queen & Slim” (McClintock 2020). For the first time in a while these theaters had reached the older demographic they had been missing, the audience was over 35. There was also one sequel film that had also been released into theaters that was just as successful last year and that was Frozen 2.
Although these films helped to save the box-office, there was one film that was made for the big screen, but as instead released on the streaming platform Netflix, The Irishman. Pivitol Research Group Founder Jeff Wlodarczak stated ““The problem for the theaters is that if they don’t carry the Netflix big-budget movie slate they are effectively pushing consumers to increasingly expect to get first-run big-budget content in their homes or on their personal devices”(Wlodaeczak 2020). This means that movie theaters are missing out on possible tickets sold, but also might not be the best for the actual filmmakers because a majority of the money made from films is through the box office. A Hollywood analyst that goes by the name “Entertainment Strategy Guy” made a breakdown of his own model that might suggest just how much Netflix might have made just from streaming for The Irishman. He estimated that the film most likely “made” “$32.5 million for Netflix from U.S. accounts, plus an additional $5.4 million from international accounts” based on about 25% of Netflix accounts watching (Metz 2020). This means that although the film was given good reviews, Netflix still lost a lot of money.
Overall, with movie tickets becoming more and more expensive and people not seeing the value in going to the movie theater anymore, streaming platforms might be able to bank on people preferring to hold that power again. Being able to watch a 3hr film on your own time, from your home will always seem to be the better option to consumers. People might choose to opt into making subscriptions to watch films that debuted in theaters, a little later after everyone which could really hurt box office sales.
Works Cited
DeleteMcClintock, Pamela. “How Original Films Saved the Thanksgiving Box Office.” The Hollywood Reporter, 2 Dec. 2019, www.hollywoodreporter.com/news/how-knives-original-films-saved-thanksgiving-box-office-1258569?utm_source=Sailthru&utm_medium=email&utm_campaign=THR%27s%2BToday%2Bin%2BEntertainment_2019-12-02%2B07%3A03%3A00_aweprin&utm_term=hollywoodreporter_tie.
McNary, Dave. “U.S. Movie Admissions Plunge 4.6% in 2019 Amid Box Office Decline.” Variety, 18 Jan. 2020, variety.com/2020/film/news/box-office-u-s-movie-admissions-decline-1203471592/.
Tavernise, Niko. “Netflix vs. Cinema: How a Disruptive Streaming Service Declared War on Hollywood.” New Atlas, 21 Nov. 2019, newatlas.com/home-entertainment/netflix-disruptive-streaming-hollywood-cinema-exhibition-war/.
Zeitchik, Steven. “How Netflix Could Disrupt the World of High-End Film with 'The Irishman'.” The Washington Post, WP Company, 27 Sept. 2019, www.washingtonpost.com/business/2019/09/27/netflix-seeks-disrupt-world-high-end-film-with-irishman/.
The formula used to be simple for making a successful mainstream film: create your vision and compete with the films that are in theaters at the same time as your film. Though Michael Bay-esc explosions and larger than life franchises have always dominated the cinema, there was always room for obscure, lesser known films in theaters. For decades, the movie business has been dominated by studios who decided what they wanted and got it. Nobody had any other choice. Enter streaming. Netflix began by recycling movies that were made by large studios to attract customers. Fast forward a few years, Netflix began making their own original movies. These were simple films, not to compete with big studio films, but to strengthen Netflix’s value proposition. Today, this is not the case. Netflix is making 50, 60 even recently a 100-million-dollar film.
ReplyDeleteIn an interview with University of Pennsylvania’s school of Business, writer Ben Fritz explains how Netflix has successfully snuck up on the major Hollywood studios and how they will only increase their threat to the rest of the industry. “[Netflix is] moving up. They’re making Adam Sandler comedies. These are $50 million, $60 million movies. They just made this Will Smith film Bright that was almost $100 million. They’re getting into the lower-upper or upper-mid budget films, the sort of star vehicles that used to be the bread and butter of studios. They’re increasingly overtaking the lower to middle chunks of the film business and leaving only the upper echelon in terms of cost to the studios.” (Knowledge@Warton). It was clear from the start that a company specializing in renting movies would eventually make their own originals if they became successful enough. However, I don’t think that anyone actually expected Netflix to grow this fast and this large. What does it mean for filmmakers?
First off, studios are only starting to feel threatened by streamers. The real blow over the last few years has been dealt to the ones who could least afford to compete with a giant: the independent and small budget filmmakers. That means that the franchises like The Avengers and Star Wars are fine. That’s because they offer more than just a movie. They offer a brand as well. This will need to be common for successful studio films in the future. It’s not just about what the movie has to offer, it’s about what the franchise can offer long term. Since 2002, box office ticket sales have significantly declined, with ticket sales dropping a whole 4.6% in 2019, (McNary). Most money that large films make are not made in the theater. They’re made with large brand deals. I think that this could mean we will see more small films that sacrifice creativity and uniqueness for marketability and accessibility. This is a huge sacrifice for indie filmmakers to make, but it could be the only way to make money.
Ultimately, the streaming wars is all about the viewers. It gives them infinitely more power than they’ve ever had before. Previously, the only choice that a viewer could make was whether they wanted to see a movie in theaters or wait until it came to DVD. They had limited choice as to what they were watching and each person was really just a statistic in the box office numbers. Now, audiences have real power. They can watch what they want, when they want, how they want. Cinemas are scared. According to Paul Bond of the Hollywood reporter, it’s not about the appeal of theaters, which have added reclined seats, video games and dining options. It’s also about making it easier and more practical for potential viewers to buy tickets, (Bond). This includes memberships, package deals and even sometimes, taking a page from Netflix’s book, subscriptions.
DeleteBond, Paul. “Games in Movie Theaters? Experiments Seek to Fend Off Streaming Threats.” The Hollywood Reporter, 23 Feb. 2018.
McNary, Dave. “U.S. Movie Admissions Plunge 4.6% in 2019 Amid Box Office
Decline.” Variety, 18 Jan. 2020.
“Can Hollywood Survive Streaming Services?” Knowledge@Wharton, 4 May 2018, knowledge.wharton.upenn.edu/article/can-hollywood-survive-streaming-services/.
Joe Zukauskas
ReplyDeleteMarch 3, 2020
In the past 10 years or so, the streaming industry and SVOD services have exploded onto the scene. With services like Netflix and Hulu leading the way for streaming services and showing consumers this new way to consume their media. The success that these companies had showed that there was so much potential to be had in the streaming world. With new players like Disney+, HBO Max, and Peacock coming onto the scene it has given way to what people are calling the streaming wars. These streaming wars are pinning all of the companies against each other and many people are wondering whether or not they will all stand the test of time. Will they all be able to succeed? Will some overpower others and therefore boot them out of the streaming service wars? The biggest question I think that we will have to answer in the next few years is how will these streaming services impact the film industry? We have seen it with movies like Irishman that was not released in theaters, but only on Netflix and it saw tremendous success.
I think the biggest plus side for putting movies on streaming services is they have a bigger budget for the most part. For example, in the Irishman the budget was massive so it benefitted from being on Netflix. In the article How Netflix could disrupt the world of high-end film with ‘The Irishman’ the author says, His new movie both illustrates the challenge Netflix faces in advancing its model and the reasons it’s become so powerful in the first place. “The Irishman” was a work that began its development life as a conversation between Scorsese, De Niro, producers and Paramount 12 years ago. But the Viacom-owned studio began balking at the budget, which involved more than 115 locations and an expensive “de-aging” technology designed to make stars look younger. Eventually, costs sailed into the $150 million range. That put it within reach only of Silicon Valley disrupters, who are concerned more with building a brand and subscriber base, and care less that every film must break even.” (Zeitchik 1).
I think this shows the true benefit that streaming services have over the film industry.
I think another quote that supports this point is another article written by the same author where it was quoted, “We just couldn’t get the backing for years,” Scorsese told reporters after the screening. “And ultimately it was Ted Sarandos and everyone at Netflix,” he said, referring to Netflix’s chief content officer. “They said, ‘Go for it.’” Scorsese works for paramount.” (Zeitchik 2). I think these quotes are the perfect example that streaming is truly the future and only time will tell how it will play out, but I expect many more films to be released via SVOD services in upcoming years.
Works Cited
Zeitchik, Steven 1. “How Netflix Could Disrupt the World of High-End Film with 'The Irishman'.” The Washington Post, WP Company, 27 Sept. 2019, www.washingtonpost.com/business/2019/09/27/netflix-seeks-disrupt-world-high-end-film-with-irishman/.
Zeitchik, Steven 2. “The Disney Plus Launch Ratchets up Talk of Streaming Competition. But the Same Creators Work for All of Them.” The Washington Post, WP Company, 12 Nov. 2019, www.washingtonpost.com/business/2019/11/12/streaming-services-are-multiplying-same-producers-directors-actors-work-all-them/.
Marie Badio
ReplyDeleteMSS 495
With the increasing rise of streaming platforms in the past five years it was inevitable to have an impact on the film industry. Currently subscribers and their friends and family will prefer to curl up on the couch with wine and beer than to drive out to the movie theater. According to Dave McNary for Variety Magazine, “The NATO report also showed that the biggest demographic jump in North American moviegoing took place in the under 10 group, with the share increasing from 6.1% to 7.5% of the total box office. Gains also came in the 10-12 group, up to 4.8% from 4.2%; the 18-24 group, rising from 26.2% to 27.2%; and the 24-34 group, going from 21% to 23.3%. The 35-44 demographic saw the biggest decline, dropping from a 16.1% share to 14.5% (McNary). Going to the movies has lost a lot of its appeal to 35+ demographic who would rather gather in a home they pay rent on then teenagers and young adults who still enjoy getting dressed and the social interaction outside of where they dwell. Or teenagers and young adults in undergrad or grad school are not going to have gatherings in their small bedrooms, dorm rooms or apartments because they simply may not have the space.
Filmmakers and streaming platforms have recognized the shift of movie viewing habits and are releasing new original content directly to streaming services like Netflix. Jeff Bock of Exhibitor Relations commented that, "Original films just came back in a big way. Hollywood needs to seize this momentum and keep dishing out midrange, adult content,". "If they stop doing that, they will lose out on all the best talent that is already gravitating toward streaming" (Hollywood Reporter). Netflix has released several popular adult and award nominated hits from film directors, which include Tyler Perry’s “A Fall From Grace”, Martin Scorsese’s “Irishman”, and Noah Baumbach’s “The Marriage Story” which feature high profile actors, and recently Netflix released trailers for new films including Spencer Confidential with Mark Whalberg. As Wall Street analyst Richard Greenfield put it “I think The Irishman and Marriage Story got seen by far more people on Netflix than they would have in theaters” (Hollywood Reporter). I wonder with the new demand for platforms to draw in subscribers with original content will directors need to have their films seen or have huge box office numbers?
New streaming platforms HBO Max and Disney+ and established streaming platform Netflix are already on board to create movies for adults that are not going to the theatres and have a large library of existing media to satisfy their subscribers who want to stay home. I feel it’s a win for both consumers and companies that cater to preferred streamers because they will be able to hold on to current subscribers and attract new subscribers. Netflix has a created a culture that you simply need a device and Internet and you can enjoy time at home alone or with people without rude people on their phones or talking to others.
According to Morgan Blake for FORBES Magazine, “Netflix affects many industries, but the greatest impact is felt in film and TV. Netflix’s content is put right in front of customers for easy marketing. Netflix recently made a move into the independent film category, where traditional movies in theaters typically face an uphill battle being seen. Now, even small films can easily be seen on Netflix (Blake). In the next five years the numbers for movie goers will continue to decrease while streaming platforms who conform to the trend will increase and survive the streaming wars.
Work Cited
ReplyDeleteMcNary, Dave, and Dave McNary. “U.S. Movie Admissions Plunge 4.6% in 2019 Amid Box Office Decline.” Variety, 18 Jan. 2020, https://variety.com/2020/film/news/box-office-u-s-movie-admissions-decline-1203471592/.
Morgan, Blake. “What Is The Netflix Effect?” Forbes, https://www.forbes.com/sites/blakemorgan/2019/02/19/what-is-the-netflix-effect/. Accessed 3 Mar. 2020.
https://www.hollywoodreporter.com/news/peak-disney-at-box-office-but-watch-2020-beyond- 1266103?utm_source=Sailthru&utm_medium=email&utm_campaign=THR%27s%20Today%20in%20 Entertainment_2020-01-04%2007:01:00_aweprin&utm_term=hollywoodreporter_tie
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