Tuesday, November 5, 2013

Netflix Should Consider Adding a Transactional Movie Service

With an Emmy under their belt and an eye on a possible Oscar documentary, Netflix continues to emerge as a leader in the OTT streaming space.  With a monthly subscription service and a growing library of video content, Netflix continues to attract a larger paying audience.  The cost to acquire content will only increase as more competition emerges to challenge them in this space.  So what else is on Netflix's plate?

"First-run films would add a dimension to Netflix’s formula of offering viewers a mix of original series, with a library of movies and reruns."  But is there intention to offer these films as part of their subscription or to perhaps consider adding a transactional business to let consumers rent first run films, on-demand, at a per movie fee.  It would certainly shake-up cable's on demand presence and attract studio attention, especially if it included a more lucrative split to gain an exclusive window.  Cable operators are already feeling the heat of the battle from cord cutters choosing OTT over cable; this business model would be the next logical step in disrupting the status quo of on demand movies.  Consumers have already shown a strong interest in on demand through their cable service; a Netflix on demand model on top of their subscription service might just be happily received for access to first run content. 

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