Subscription Video Trends and Challenges
Is Netflix Getting Out of the Film Business? Subscribers watching licensed and original television series’ content on Netflix account for more than two-thirds of viewing time. Series viewership outpaces overall growth mainly because Netflix has dedicated vast resources to becoming a content producer rather than remaining only an aggregator. Although Netflix has acquired rights to a modest number of films at Sundance, Cannes, and TIFF, their U.S. film streaming library remains weak. Technology Company to Motion Picture Production For every $8 per month Netflix collects from its 100 million subscribers, between $6-7 is spent on content production and licensing. More than half of these content costs now fuels Netflix original programming, which has soared. The size of Netflix’s film library has steadily decreased over the last two years. Currently, on the U.S. site, less than 25 out of the top 250 films rated by IMDB are available. Conversely, HBO has licensed over ...