Being successful, in and of itself, is no crime. But if your success undermines the profit interests of more powerful players, then you can expect to be punished. Netflix seems to be in line for this lesson. There’s a chance some of its streaming movie offerings about to be pulled .
Here’s how it works: Netflix has a deal with Starz Play where Starz resells Netflixs its movie licenses. Netflix then trots these films out on its Netflix Watch Instantly service. Starz is happy. Netflix is happy. Netflix’s customers are happy. Disney and Dreamworks aren’t happy. And since it’s there content, they have the final say.
Disney and Dreamworks want more money for what they’re providing. (Who didn’t see that coming?) If Starz doesn’t agree, or if the economics become untenable, then Netflix and its customers will lose out.
It seems, like with music, that movie studios, still operating under last century’s economic models, are intent in killing off a burgeoning new content delivery system because they can’t make as much money as they feel they deserve--regardless of what the system is capable of delivering. It didn’t work well for the music industry. Hard to see how it will work out any better for the movie industry.
Image Credit: Netflix