Insurgence

September 03, 2011 at 5:36pm

     It's not the streaming that most companies have a problem with, rather it's the fact that Hulu was free, and Netflix provided it free until the subscription gets implemented. This means that essentially they pay for a bunch of movies in either one lump sum or on a payment plan (i.e. yearly, monthly, ect.). This may be fine for movies that have already found a place in homes or that are not as popular, and thus will not sell that many copies, but when it comes to the movies that will sell, whether it is a rerelease, a new release, a re-master, or a a new edition, it can sorely cut into their profits. Some releases can provide a serious influx of cash, or a serious impact. Take MGM for example. One of their biggest money makers is James Bond. Another one is the Stargate series. Now let’s say, hypothetically, that a new James Bond movie is released and it becomes a big hit. Big hits are generally expected to sell a lot of copies. Well, if there are several deals out there that make it so that the movie is widely available through subscription services such as Netflix and Hulu, and those services are good enough that people actually use them, then people would be more willing to use those services instead of buying the movies. I am one of those people. I would use the subscription to cut down costs of movie purchases, and wait till a movie is either on sale or in a bargain bin before I purchase it. On top of that if a movie is released in stores and on subscriptions services simultaneously it actually becomes more convenient to use the subscription service. Now, I for one would think that should serve as a sign that movie studios need to re-evaluate how they sell things, such as pricing and available editions and availability. But movie studios are like everyone’s grandparents. They are old, crotchety and do not want to change or do not understand enough of the environment to change.  On a side note, I by no means wish to imply that this is the reason for the supposed financial straits of movie studios or even why MGM filed for bankruptcy.  I would rather imply that it is bad management that caused that.

     On the subject of changes at Blockbuster, I hope they can implement a good subscription service and a good purchase/rental service at the same time. I always felt that companies that only do one or the other are limiting themselves and not maximizing their use of the digital distribution platform.