Beginning of The End?

Movies Get Released Day-and-Date Across All Media Outlets 

Ted Sarandos
Way back in 1999, I penned an article for the Film Journal International entitled, "Theatres Become Viewing Venues".  In that article, I proposed that eventually - given the digital domain's need for speed and efficiency - all content would be available to everyone, everywhere in a real time basis.  Therefore movies would be 'offered up' in a variety of media outlets on a day-and-date basis.  This scenario is beginning to play out and why I continually harp to cinema owners that they must have a 'wow' factor in their presentations (both image and sound) if they are to survive.

OK, having said that, it appears that Netflix will be the first company to try out this scenario, as it recently announced that with the success of the TV shows it has produced and made available to its over 40 million subscribers, it has plans to produce feature films which would appear in cinemas and on Netflix at the same time.

Last week, Ted Sarandos, Netflix Head of Content, told CMG that, "Netflix could start delivering new movies to its subscribers by doing the same that we did with our original TV shows and become a first-run distributor."  When we pressed Sarandos, he told us, "What we're trying to do for TV, the model should extend pretty nicely to movies. Meaning, why not premiere movies on Netflix, the same day they're opening in theatres?  And not little movies.  There's a lot of ways, and lots of people to do that already.  Why not major releases?  Why not follow the consumers' desire to watch things when they want?"

What Netflix wants to do is put pressure on Hollywood to change - it wants to end-run the present system of movie distribution. Problem is, the theatrical release is really the initial marketing for a movie with the more lucrative distribution of pay-per-view, DVDs, and TV (cable & broadcast) which follow - this is particularly true with blockbuster movies which generate a majority of the cinema box office.

Needless to say, the time when movies will release day-and-date is fast approaching and inevitable, there is just too much money involved for players like Netflix, Google, Amazon, and Apple to ignore.

Best,
Jim
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