Why Movie Theaters Are Trying To Partner With Netflix
In a partnership that could prove to be fiscally beneficial for both parties, Netflix is reportedly partnering with undisclosed movie theaters to release certain films that they produce.
Big changes are soon coming to Netflix, depending on who you ask, those changes could be good or bad. Netflix has formed some exclusive partnership with movie theaters to stream some movies in theaters for a set amount of time before they air on Netflix. The upcoming changes that are taking place come as Netflix is opening up to new avenues of income and building customer satisfaction.
The income stream that Netflix generates from its subscription services is simply not going to cut it to sustain the company moving forward. With a need to generate income from other sources, Netflix is exploring options that could benefit the profit margin and propel the company into the future. There are several changes that Netflix subscribers will notice include movie theater partnerships, advertisements, and more.
After years of advertisement resistance and Netflix not wanting to implement ads or commercials, the company has caved. A basic Netflix membership with ads will cost subscribers around seven dollars per month and will be implemented in November. The ads will be in 15 and 30-second increments and play roughly five minutes of ads for one hour of stream time.
While this change might not be exactly what subscribers want, it is necessary for the company to meet the bottom line. The other changes that will take place are likely to be more welcomed and something to look forward to for Netflix users. About 600 movie theaters in the United States will stream a Netflix-exclusive film
Netflix releasing its productions in theaters is not a completely new thing as the company has done it in the past. However, the three major players, AMC, Regal, and Cinemark have yet to host a Netflix movie stream. The companies have been in negations for quite some time and may have just struck a deal as good as a golden ticket.
Movies that are released in theaters get a lot of generated chatter and buzz, building anticipation and sparking worldwide interest in the movies to come. All three major movie theaters have agreed to showcase a major Netflix movie. Tickets are already on sale for an exclusive movie theater release, Glass Onion: A Knives Out Mystery, which will premiere in theaters one month before it is available to view on Netflix.
Netflix has lost nearly one million subscribers as of recently. The thought process behind the partnerships with heavy-hitting movie theaters is that viewers who watch the movie in theaters will want to again watch the movie from the comfort of their own home, thus subscribing to Netflix. This partnership has been a long time coming and comes after the movie theaters have seen the success of several Netflix films.
In the past, the one factor that held this partnership between Netflix and the big box cineplexes was the fact that the theaters did not want to stream the movies at the same time. This problem has been solved with an exclusive streaming timeframe at the movie theaters before the movie will be released on Netflix. This collaboration is destined to benefit both Netflix and movie theaters alike.
