Wednesday, October 1, 2014

Movie Chains Fight Back Netflix Plans

Congratulations to Netflix on the great PR they are getting.  For a move not expected to occur for 10 months, Netflix has caused an uproar in the movie industry with their latest move.  Their plan to offer a theatrical release of a film at the same time it plays on IMAX movie screens.  And movie theater owners are fighting mad. 

According to The New York Times, "Two major theater chains, Regal Cinemas and Cinemark, said Tuesday that they would not screen next year’s sequel to “Crouching Tiger, Hidden Dragon,” the first major motion picture that will make its debut simultaneously on Netflix and on a select number of Imax screens."  So their IMAX screens will not show the film.  Netflix probably doesn't care in the least.  Exclusivity only makes their distribution platform stronger. 

Still the question remains how this move affects the other partner, The Weinstein Company, who is producing this sequel.  How will this collaboration with Netflix play out in future releases for the film company?  Will Regal, Cinemark, and others decide to not screen another Weinstein film to show their displeasure toward the company?  Or will other film companies follow Weinstein and offer a similar distribution deal with Netflix?  We may just see this move as the start of a new distribution strategy.  Regardless, disruption is at work and Netflix awareness is growing.

1 comment:

  1. Good post. The entertainment industry continues to be shaken by the internet and new players using that medium. It is really hard to foresee how all this will shake out. Hopefully the end users will benefit from the competition. I am a little leery of exclusivity deals that sometimes hold the consumer hostage. For sure the "middle men" needs to be eliminated to drive prices down and still have enough left over to get money into the hands that make sense, the content creator.