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Why doesn't Netflix or someone make their own studio? The main thing holding media back at this point is the existing studios and distributors wanting a ridicu

Why doesn't Netflix or someone make their own studio? The main thing holding media back at this point is the existing studios and distributors wanting a ridiculously high cut of everything. Personally, rather than trying to find a way to play nice with those guys, I'd rather cut them out entirely.

projectileboy 16y ago
Exactly my thought when I read this. Starting a movie studio wouldn't necessarily be any more difficult than it was to build a nationwide distribution network. Seems to me Netflix could start financing the shows on cable and network TV, and then partner with Google and others to build out urban wi-fi networks, city by city to go after the cable providers. Netflix wouldn't even have to win this fight, but applying pressure across the entire value chain of content creation through content delivery would keep any one entity from putting Netflix in headlock.
ZachPruckowski 16y ago
Because studios are very capital-intensive. You've got to front hundreds of millions of dollars for a year or two before the movie hits theaters. Not to mention that it's like VC - you've got to invest in 5 movies because 2 of them will flop, 2 will be modest successes, and 1 of them will hit it big and nobody knows which ahead of time. So you're talking about getting your hands on like a billion dollars in startup cash for a studio.
OpieCunningham 16y ago
1, because it's expensive (take a look at MGM situation over the past decade) 2, having access to 1 studio, especially a no-name studio is extremely non-valuable to Netflix. When is the last time you saw a movie because it was released by Sony Pictures, or Lionsgate, vs. seeing it because the content itself was interesting to you? I'd hazard you've never done any such thing, because effectively zero people consume content based upon who owner is vs. what the content is/who the creator is. Netflix needs at least 2 of the major studios providing them content, preferably 3 or 4 of the 5 majors, in order to provide access to a wide range of material.

projectileboy 16y ago

Exactly my thought when I read this. Starting a movie studio wouldn't necessarily be any more difficult than it was to build a nationwide distribution network. Seems to me Netflix could start financing the shows on cable and network TV, and then partner with Google and others to build out urban wi-fi networks, city by city to go after the cable providers. Netflix wouldn't even have to win this fight, but applying pressure across the entire value chain of content creation through content delivery would keep any one entity from putting Netflix in headlock.

ZachPruckowski 16y ago

Because studios are very capital-intensive. You've got to front hundreds of millions of dollars for a year or two before the movie hits theaters. Not to mention that it's like VC - you've got to invest in 5 movies because 2 of them will flop, 2 will be modest successes, and 1 of them will hit it big and nobody knows which ahead of time. So you're talking about getting your hands on like a billion dollars in startup cash for a studio.

OpieCunningham 16y ago

1, because it's expensive (take a look at MGM situation over the past decade) 2, having access to 1 studio, especially a no-name studio is extremely non-valuable to Netflix. When is the last time you saw a movie because it was released by Sony Pictures, or Lionsgate, vs. seeing it because the content itself was interesting to you? I'd hazard you've never done any such thing, because effectively zero people consume content based upon who owner is vs. what the content is/who the creator is. Netflix needs at least 2 of the major studios providing them content, preferably 3 or 4 of the 5 majors, in order to provide access to a wide range of material.