To this day, if your impression of Netflix's masterpiece is still "House of Cards", it may be time to update the common sense of American dramas in your impression. Just a few days ago at the Golden Globe Awards, Netflix created a new record in the film and television industry. This streaming media giant was nominated for the Golden Globe Best Movie for the first time, and four films competed for the best film in the drama category at the same time, including "Marriage Story", "The Pope's Succession", and the well-known "The Irishman".
So far, the weight of the title "Netflix Produced" and its influence in the film and television industry have undoubtedly reached a new level.
[The older generation of filmmakers have joined Netflix]
mentioned the launch of "The Irishman" on Netflix, and there is really a story behind it that does not lose the ups and downs of the show. As a gang crime genre that was once dominated in Hollywood, it has experienced script rewriting, complicated and changeable fundraising process, restrictions of large studios and directors’ pursuits, and serious cost overruns. In many online versions, there was a loud bang in the sky at the end, and the "Receiver" Netflix made its debut. It continued to support it at a reasonable price and gave the director the most important control.
In the end, Netflix, the "ideal Party A" paid for it, but "The Irishman" gave up the opportunity to be on the big screen and moved to the online streaming platform for exclusive broadcasting. It’s said that Martin Scorsese, a director who pursues the art of film, doesn’t know much about streaming media. It seemed that after "The Irishman" was launched, he made a request, "If you want to watch my movie, please don’t watch it on your phone. I beg you. At least use an iPad, a big iPad!" The behind-the-scenes story of
calling "The Irishman" undoubtedly adds some drama. It seems that the older generation of filmmakers should switch to streaming media on the front line of the Internet. Wipe out such a spark. However, Scorsese’s experience is more like a "forced to war", and it makes many film critics feel uncomfortable, lamenting the "thinking rigidity" of its Hollywood model, and Netflix, which is more like a "heterogeneous" of technology companies. Brings "last hope" to the film and television industry.
[Why did Netflix change from "heterogeneous" to "savior"]
will put one hundred eggs in one basket or put one hundred eggs into one hundred baskets on the premise of guaranteed profit? Although knowledge of economics tells us to diversify risks, for companies such as Hollywood and Disney that hold big IP and mature industrial chains, the cost of investing in a few movies that are most likely to sell well has become more expensive. The higher the coming, and the benefits of these high-cost commercial films are also unattainable for niche themes.
is actually not just a case of "The Irishman". As Hollywood has matured its big IP commercialization model in recent years, big IP sequels and series works are more likely to get a lot of investment. And more and more "thought" practitioners, or niche original independent works, have to make a living elsewhere-Netflix has also become a good choice for them.
So he cares, for a while, there have been voices comparing Netflix to Hollywood's "receiver". However, with its relatively open and inclusive attitude, more and more high-quality works regarded by Hollywood as "unsold" have become Netflix exclusive resources, and the trend of public opinion has gradually changed. Nowadays, the launch of the hot potato "The Irishman" and the award-winning nomination have further promoted the fermentation of such views, and has also turned Netflix from a "heterogeneous" in the film and television industry into a "savior".
[Especially a revenue undercurrent under the grand occasion]
But behind the seemingly infinite Netflix, in fact, it is also undercurrent. Like most Internet industry giants in the early stages of development, the biggest crisis Netflix is facing at this stage still comes from its revenue model. According to the financial report for the third quarter of 2019 released by Netflix, operating income for the quarter was US$5.24 billion and net profit was US$665 million. Although the revenue for the quarter was slightly lower than market expectations, if you just look at these data, Netflix actually performed well.
But more detailed data reveals the shortcomings of the Netflix business model. Net cash used by Netflix for business operations in the quarter was US$502 millionYuan, lower than the 690 million US dollars in the same period last year, and the free cash flow was -551 million US dollars. In fact, it is not uncommon for free cash flow to be negative in Netflix's financial reports, and officials have repeatedly attributed it to the "growth of original content." In fact,
has many similarities with Hollywood in the Netflix model, that is, the greater the investment, the more likely it is that high-quality works will appear, which will attract users to pay. This has also caused Netflix's revenue costs to also continue to rise. The figure announced in the third quarter of 2019 financial report has also reached 3.098 billion US dollars.
At the same time, Disney's Disney+ and Apple's streaming media business have also been launched. Among the two Netflix competitors, Disney has the most amazing strength. The Marvel, Pixar, and Star Wars series acquired by it, as well as Disney itself, also have a large number of high-quality IP, and Disney+ was launched at the beginning of the price. Advantages to attract users. Therefore, some insiders speculate that the later Disney+ may have a huge impact on Netflix's current industry leading position.
[After all, Netflix has opened a window for paying for content]
Although Netflix still has problems and risks of this kind, in any case, the growing number of users has proved that this model is indeed desirable Place. The high-quality content of the "academic recognition" level further promotes its rapid increase in word-of-mouth, making its model also gains in various industries, especially the film and television industry, which is more and more recognized, and more and more models are similar. 'S platform sees the possibility of profitability with original high-quality content.
For a long time, Internet people have believed that the profit model is free content, and then profit through advertising. This model is reflected in many online video sites, that is, users can watch a variety of high-quality content for free, but at the same time they must endure 120 seconds or more ads before they start. Despite this, platforms and advertisers will still be dissatisfied. After all, a movie lasts for 120 minutes, and the advertisement can only be broadcast for 2 minutes. The delivery efficiency is too low, and users will also be dissatisfied with the longer and longer advertising time.
From this point of view, the optimal solution seems to be the "content payment model", but in the face of the realisation of advertising, few platforms have the courage to try, or just give it a taste. However, Netflix's current achievements have made it possible, including many domestic video websites, to see the possibilities brought by the content payment model. Taking the domestic market as an example, the top echelons such as iQiyi are gradually getting rid of the original "advertising revenue-led" model. Perhaps in the future, more and more viewers will be familiar with the content-paid consumption model, and the platform can also expand more Focus on finding and cultivating high-quality content, instead of taking the risk of decreasing user stickiness and blindly focusing on advertising.
[The picture in this article comes from the Internet]
