Netflix original movies are now exploring the mass entertainment angle to provide entertainment to traditional movie-goers.
Netflix has long been one of my favorite market disruptors. In the pecking order of tech disruptors of our generation, I put them right up there with Amazon and Tesla. All three companies took a single idea that many were talking about but never had the courage to act on, and took that idea to a whole new level.
But of these the top three, Netflix is the one company that has validated its disruptive credentials time and time again by showing enormous talent at being able to adapt according to the situation.
Netflix started off in 1997 as a DVD rental company. They eventually dropped their single-DVD rental model in favor of a more membership-oriented business model, charging flat fee for unlimited rentals. The move from per-title rental fees was a huge one, as it set the tone for the company’s move into video streaming.
After a point Netflix was already shipping unlimited titles for a flat fee, so what better way to reduce costs, save time and expand its reach than by taking the streaming route?
After going full steam in the video streaming business and growing its subscriber base to millions, the company that was known for a library containing of thousands of titles started experimenting with producing original content.
Though the cost-to-benefit analysis of their strategy to move forcefully into original content is still under the microscope, it is clear that the users were lapping it up. Original content did another thing for Netflix: it created a viable way to stand out from the competition, most of whom were merely streaming licensed content the way Netflix has been doing for so many years.
The master adaptor has now decided to step up the game by several notches by announcing a theater distribution deal with iPic Entertainment, which currently operates in 15 locations with 113 screens. According to the deal, Netflix will release select original Netflix films at iPic Theaters.
Netflix Original Movies in Theaters Could Go Mainstream
It’s a great move for Netflix. For starters, the company has already decided that it is going to double down on original content, and its licensed content library is shrinking at an alarming rate. Producing original content costs a lot of money, and it’s a never-ending process.
By taking its content to the theaters, Netflix can achieve two objectives: first, create a new revenue channel that will provide more funding for original programming, and second, increase its exposure to people who are yet to join their subscription base. It’s likely that people who go to a theater to see a Netflix original movie might consider signing up for the online service as well.
It’s a great way to advertise Netflix original programs, and it could significantly add to the company’s top line revenues as well. iPics Theaters are currently located only in a few states across the country such as California, Florida, Texas, Washington, New Jersey, New York, Wisconsin, Illinois, Arizona and Maryland, but if this partnership is profitable for Netflix as well as iPics, we could see a massive nationwide rollout of Netflix originals with several entertainment companies over the next two years or so.
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