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Hollywood Has a New Plan to Stop Netflix

It is no secret that Hollywood movie studios are not Netflix fans. They have slowly made it harder and harder for Netflix to get access to movies and TV shows.

Now movie studios such as Twenty-First Century Fox and Warner Bros. are hoping to get movie fans to rent movies rather than waiting for them to show up on Netflix. To do this they are going to drop the time between release of a movie in theater and its release on services such as Amazon Video to just 45 or fewer days. Compare that to 135 days wait in 2005, and you can see they are getting more aggressive.

That will mean that movies will be available for digital rental months or maybe even a year before they show up on a service such as Netflix or Hulu. The hope is this will make you more likely to pay up and watch the movie long before it goes live.

What is really driving this effort is the disappointing movie ticket sales at movie theaters. In 2016 global box-office growth slowed to just 1%. Compare that to Netflix, which saw a 35% year over year increase in 2016 including the largest-ever quarterly growth in new subscribers.

For now at least movie studios seem to want to fight services such as Netflix rather than work with them. The only question now is will early digital rental options make people more willing to rent a movie rather than just see what is on Netflix tonight.

Source: Investopedia

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17 Responses to Hollywood Has a New Plan to Stop Netflix

  1. David Batten March 30, 2017 at 7:15 am #

    When will the movie studios get it. It is not Netflix. Its the studios and the movie theaters. When you feel like you have to take out a bank loan to have a night out at the movies. The price is too HIGH.
    Then add in screaming kids, annoying teenagers, etc. Going to the movies is not worth the cost.

    • JGaLaXY March 30, 2017 at 9:00 am #

      half way agree, Netflix definitely got them beat at their price point. Even when I get free screening tickets I will end up spending 15 to 20 on drinks and popcorn, its an economy problem and not worth it

    • jntaylor1701 March 30, 2017 at 11:23 am #

      Yep. It is simply cheaper for me to BUY the Blu-Ray than take my family to see a movie. I think I have 3 to 4 movies on my shelf due to this deal with my kids. And If I buy the movie and nobody likes it, sell it.

    • Bruce Wayne April 2, 2017 at 1:53 pm #

      Agreed. I just prefer sitting in the movie theater in my house. The screaming kids, lights of cell phones, people talking during the movie, dirty seats and floors just isn’t worth it for me.

  2. mau47 March 30, 2017 at 8:08 am #

    This isn’t about fighting Netflix as much as it’s fighting slowing box office sales. Right now Disney is king of the box office and they aren’t even entertaining the idea. The box office is where studios make most of their money, so if sales slow there and they can get it in your living room for a $30 rental fee they are going to capitalize, this doesn’t really affect Netflix much at all. You can still rent movies digitally before they hit Netflix as it stands today, it’s just trying to pull in some extra money in the short term before they pimp their movie to Netflix and other services after a few months to a year.

  3. beentheredonethat2 March 30, 2017 at 8:12 am #

    Not interested in paying to have YOUR POLITICAL AGENDA thrown into every movie.

    • Bruce Wayne April 2, 2017 at 1:48 pm #

      But you would pay if it was your political agenda in it.

      • Ben M April 2, 2017 at 4:15 pm #

        How about no political agenda left or right? Is it really that hard?

  4. SnoDa March 30, 2017 at 8:17 am #

    It’s not Netflix that’s the problem, it’s “Hollywood”. Stop making crappy movies and the public will respond.

  5. Ethan Clark March 30, 2017 at 10:07 am #

    This is only going to increase piracy.

  6. Gern Blandersong March 30, 2017 at 10:45 am #

    Netflix is now part of the “Hollywood” business. I listened to an interview with Reed Hastings this year and Netflix has shifted its spending this year to content vs tech. It is now a 5:1 ratio. $5 billion this year will be spend on Netflix content versus $1 billion this year on technology. Amazon video is also investing heavily it content too. The traditional Hollywood businesses are in a tough position. They could do the same thing as the music record labels and allow their content to be streamed to all services like Netflix, Amazon, Hulu, etc… Or, the Hollywood studios could get together and make their own streaming service. Or, they can cling to the existing model of movie theaters. The advantage that the musicians have is that they can allow their music to be streamed everywhere, but then they can put on “live” concerts at venues. Movies do not currently have a “live” component to them, but someone who is creative could invent a “live” experience to movies.

  7. Daniel Richards March 30, 2017 at 11:19 am #

    I’ll wait, I ain’t paying 5 bucks for 1 movie just to get to see it sooner, if I want to see it that bad I’ll buy the damn movie.

    • Kravimir March 30, 2017 at 2:32 pm #

      I’d rather buy a movie than pay individually to rent it too. However, some movies become available as a digital rental weeks before they become available as a digital purchase.

      • Daniel Richards March 30, 2017 at 3:12 pm #

        I can wait, waited for the movie to leave theaters and be available elsewhere, can wait a bit more for other options, this is a consumers market, not a suppliers market. I won’t even pay the 1.50 Redbox has climbed up to, I sure won’t pay the 5 they want.

  8. BigO March 30, 2017 at 12:59 pm #

    For us, we have been very happy to wait for a movie to come to one of the streaming services, or wait for it to arrive at the library. Yes, it does mean we have to wait, but we are also saving quite a bit of money by doing so. Plus, if one really looks at the content available via the streaming services (we subscribe to Netflix / Amazon / Hulu – make use of Crackle to a degree – and use the library often), waiting for the latest & greatest movie is not that big of a deal.

  9. Richard smith March 30, 2017 at 6:31 pm #

    Different customers $10 on Amazon to rent Two movies. $10 for a month of Netflix. If I want to see a Movie I’ll do it the right way get a Blu Ray from Redbox for $2

  10. Sean Berends April 1, 2017 at 6:51 pm #

    The movie studios need to stop blaming Netflix and look at themselves. The movies that are coming out are bad or repetitive. Did we REALLY need ANOTHER King Kong movie?! Originality has flown the coop and prices continue to go up.