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Netflix - Do We Still Need Cinemas - Essay Example

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This paper seeks to provide insight into the evolution of film distribution within the context of traditional cinema versus popular digital platform, Netflix. Even though Netflix is a key player in film distribution, cinemas are still a vital part of the entertainment industry…
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Netflix - Do We Still Need Cinemas

Download file to see previous pages... In the conventional film distribution setting, cinemas or movie theaters have often been the first point of sale for movies. After cinematic or theatrical distribution, the second traditional channel comprised of the broadcast via television, followed by DVDs. Majority of film producers opted for these three modes of distribution, in an attempt to ensure optimal viewership and reap maximum profits. Recently, however, the pervasive nature of the internet has influenced film distribution, paving way for digital online platforms. The latter include video on demand (VOD), mobile applications, and live streaming. This paper seeks to provide insight into the evolution of film distribution within the context of traditional cinema versus popular digital platform, Netflix. Even though Netflix is a key player in film distribution, cinemas are still a vital part of the entertainment industry and should not be entirely written off.
Pioneers of movie distribution since the advent of the film industry were traditional theaters and cinemas. Cinemas were rather popular, as people increasingly embraced moviegoing as a weekend form of relaxation with family members and friends. The earliest theaters did not project movies on a screen. Rather, the films were showcased using peep-show machines referred to as kinetoscopes. The latter was developed by Thomas Edison and W. Dickson, and they remained popular till the end of the 19th century. As the world ushered in the 20th century, similar peep-show gadgets referred to as Mutoscopes were introduced in the continued popularisation of a theatrical portrayal of film. ...Download file to see next pagesRead More
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It was founded in 1998 and is based Los Gatos, California. The company offers on-demand internet streaming media in the U.S., Canada, and Latin America and has announced that it will expand it operations into the European market starting with Spain by 2012 (Whitehouse, 2011).
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In this similar context, the movie rental industry is also seen to be perfectly competitive. In order to gather a precise understanding regarding the nature of competitiveness in the movie rental marketplace, the five-forces analysis has been conducted in the following (Thompson, n.d.).
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The market analysis is guided by the company’s description of its competitors as: (1) “over-the-top” Internet movie and TV content providers such as YouTube and iTunes; (2) multichannel
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1. Watching movie by subscriptions- Netflix had set up a strategy by providing as many as eight subscription plans to its customers (Thompson 282). The most successful plan was its $8.99, $13.99 and $ 16.99 where the customers could avail all its movies in its
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This could be because of popularity of other forms of DVD rentals such as Redbox at $1 for DVD rentals per day. 3. Price changes have become exceedingly difficult for the
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