COVID-19 has decimated global content pipelines by halting film production, canceling greenlit projects, and closing cinemas. However, the present disruptions have only accelerated transformations that were well underway.
After a lackluster Sundance in 2018, last year was full of mega-deals, especially by Netflix and Amazon. Buyers spent over $120 million acquiring rights to some 40 films.
To gain a global content edge, Netflix has set into motion a EU production boom with plans to produce over 225 films and shows in Europe. Netflix currently controls 53% of the SVOD market in Europe.
British film exhibitor Cineworld is now the largest theater chain in North America after buying out Canada’s Cineplex for $2.1 billion, which was a whopping 42% premium.
Never known for adapting to changing markets, European companies are now forced to forge alliances in hopes of staying relevant after the well-timed onslaught of Netflix in Europe.
After a decade of primarily focusing on episodic content, Netflix wants to break the theatrical glass ceiling, especially since they are funding more original films.
Netflix and Amazon, who were once touted as the saviors of the indie film market, are retreating from acquisitions to focus on producing more original films.
Apple TV+ subscription service will launch on November 1st for $4.99 a month. However, with only a handful of shows available, it will not frustrate the launch of Disney+ or challenge Netflix in a meaningful way.
Buyers at TIFF are skittish after a 6% drop in North American box office receipts in 2019. Worse still, is the dire year indie films are having, where receipts have declined 45%.
Part Two: Netflix Trends, International, Feature Films. Through the first six months of 2019, Netflix’s customer acquisition costs have ballooned to $292 per subscriber.
Part One: Netflix Subscribers and Exclusivity. Netflix lost subscribers in the United States for the first time in nearly a decade. The next battleground in streaming will take place over content exclusivity.
Netflix is banking on a slate of big budget films to attract new subscribers. The streamer is spending over $550 million to make just three big budget films.
Netflix solidified its position in Hollywood by recently taking the empty seat at the Motion Picture Association of America vacated when Disney acquired Fox.