It is now evident that going forward, most entertainment will be streamed. Consumers are already choosing streaming over broadcast and cable TV. Yet, only one company, Netflix, is generating any big dollars from streaming. Why?
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| Only Netflix counts. Cinemas can and will get alternative content |
Netflix has a unique niche. With over 400 million paying monthly subscribers worldwide, it generates huge cash flow which it has wisely placed on high-quality content produced around the globe. So how can other entertainment companies follow suit? It will be very difficult!
It will take massive investment over a long period of time and producing great series, movies, and 'live' programming that people want to view day after day. Or linkup with an existing streamer and scale your content (brand) with great programming and receive a share of the revenues of all of the streamer's service revenues.
This is similar to the movie distributor/exhibitor relationship. Keep in mind that Netflix's current share of at-home viewing time is less than 10% - meaning many people are online and viewing other stuff (YouTube, X, Rumble, Meta, et.al.).
This scenario goes for the cinema industry as well. More and more, movie theater content will be streamed And, more and more, will be non-film. Concerts, sporting events, live entertainment will take on more and more screen time.
Jim Lavorato, Entertainment Equipment Corp. EECcinema.com
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