Content media

The addition of cinemas to Netflix indicates that content is important

The old hockey aphorism rings true as Netflix shakes things up a bit: Skate where the puck is going – not where it’s been.

Netflix clearly isn’t afraid to try new things in ways that might be head-scratching — just ask Lindsay Lohan.

But the recent news that Netflix has struck a deal with some of the major movie chains to bring the movie “Glass Onion: A Knives Out Mystery” to physical locations shows just how bad the platform model — and economics — is. connected – is expandable. really can be.

And, yes, it’s a limited run for this “Knives Out” sequel — only a week — but again, the fact that theaters have done the deal says a lot. As noted, AMC, Regal, and Cinemark will stream the film for a week.

For cinemas, the film would apparently be a way to increase foot traffic in cineplexes.

For actors, perhaps, the pay goes up a bit (there’s the eternal debate about residuals, DVD sales, etc. if movies don’t hit theaters).

For Netflix, the move is one that will bolster its continued push for content – the big-budget kind, of course, as the company becomes synonymous with more than just existing as a media delivery mechanism.

For the connected economy, Netflix’s decision shows how a brand can move seamlessly between channels, even simultaneously.

In recent Connected Economy reports, we noted that the overall increase in consumer digital engagement increased by 14%, measured from November last year to this fall. Within these related activities is the range of “fun” events that would include taking a movie. There’s enough experience and confidence in Netflix that consumers can switch from pressing buttons on their remote or phone to watch a movie after work or on the weekend in the midst of the grand reopening.

None of this means Netflix is ​​getting into the brick-and-mortar experience. But bringing movies to the actual box office does a few things. First and foremost, there is the possibility of seizing and expanding certain sources of ancillary income.

The potential for cross-pollination is there too, where existing subscribers may be forced to keep an eye out and pay for more original content. And then there remains the possibility of tapping into those mainstays who are not (yet) Netflix subscribers, but represent potential new customers.

This is a gamble that can pay dividends and would not affect the model already in place and still being refined (via multi-level models). A week of filming in theaters can be the launch pad for “Glass Onion” – and for Netflix, so much more than that.

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https://www.pymnts.com/streaming/2022/netflix-flips-business-model-with-plans-to-open-knives-out-sequel-in-theaters-before-streaming/partial/