Netflix Day-and-Date With Cinema Screenings

There was a lot of negative press regarding the deal inked between Netflix and iPic Entertainment ,the small, up-scale, and pricey theater chain that offers luxury seating with gourmet food and alcoholic drinks (if preferred) while you watch a movie. But, I see it differently.

I see no difference between an original movie from Netflix vs. one released from any other major studio.  I stated, long ago, that internet streamers would eventually run day-and-date product with cinemas and that the exclusive theatrical release window would eventually cease to exist. A step in that direction has now taken place.

The studios and large cinema chains (who naturally are against this) have no one to blame but themselves.  The major Hollywood studios, along with Regal, AMC, and Cinemark have been playing the 'clearance' game for years (see CMG post, "Fox Eliminates Practice of Exhibitor Clearances" posted on April 2, 2016) to the detriment of the small, independent exhibitor and now they will have to contend with their sins.

The Netflix/iPic deal calls for iPic to screen up to 10 Netflix original movies at the same time as those films are streamed on Netflix. iPic currently has 105 screen across the U.S. but is expanding with 20 new locations (typically 6-8 screens per location) in the works.

The National Association of Theater Owners (NATO) the movie exhibitor lobby group which for the most part works on behalf of the large cinema chains is adamantly opposed to the Netflix/iPic deal but ironically was closed-mouth, stating "it was not NATO's business to comment on the clearance deals" that has been negatively impacting the small, independent theaters for years.

Actually, this deal is good for the independent cinema operator.  Although the particulars of the deal between Netflix and iPic were not divulged, my guess, is that iPic is getting a better deal on gross revenue sharing with Netflix than they are with the Hollywood studios. Additionally, more good product for the independent to choose from, can't be bad.

This deal represents a crack in the dike and I predict the dike will eventually fall.

Best
Jim