How Hollywood Is Racing to Catch Up With Netflix
Netflix’s leap into the top echelon of the entertainment industry in just a few years has left Hollywood in a state of near bedlam. While the major studios were fighting with cable operators over carriage fees and retransmission consent deals, a company with roots well outside the Hollywood mainstream was unleashing the biggest innovations in the television-viewing experience.
In the process, Netflix has also rewritten the rules of TV and movie dealmaking, talent paydays, TV scheduling, film release windows and marketing campaigns. It’s an extraordinary level of influence exerted on a mature industry dominated by long-established stalwarts.
Consumers have voted with their wallets, taking Netflix from 27 million U.S. subscribers in 2012 to 56 million as of June. Around the world, the number has grown to 130 million as of June. Netflix keeps every penny of the $8 to $14 monthly fee that “members” pay for access to the service. Disney and its ilk, on the other hand, receive a small slice of the much larger check written every month by traditional MVPD subscribers.
Netflix has set sky-high industry records for content spending — a projected $12 billion-$13 billion in 2018 — at a time when it is still in building mode.
See the full story here: https://variety.com/2018/digital/features/media-streaming-services-netflix-disney-comcast-att-1202910463/