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'Netflix model' worrying some video game makers - Business Insider


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A movie has multiple revenue streams.

 

  • It releases in theaters and makes money.
  • It then releases to VOD for a short period of time at a high price, and they make money from those willing to pay for it.
  • Then it transitions to rental via Redbox (or even through Netflix's old mail service) and streaming rental.
  • At the same time it goes on sale if you want to buy the physical disc.
  • And lastly, it makes a bit more money after all of this if Netflix or HBO decides to have the movie on their service.

 

I count at least 4 different revenue streams, and they are all spaced apart chronologically so that the movie can make money by moving it onto a different platform over the course of about 18 months. Video games do not have that luxury, as of right now.

Edited by jehurey
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19 minutes ago, jehurey said:

A movie has multiple revenue streams.

 

  • It releases in theaters and makes money.
  • It then releases to VOD for a short period of time at a high price, and they make money from those willing to pay for it.
  • Then it transitions to rental via Redbox (or even through Netflix's old mail service) and streaming rental.
  • At the same time it goes on sale if you want to buy the physical disc.
  • And lastly, it makes a bit more money after all of this if Netflix or HBO decides to have the movie on their service.

 

I count at least 4 different revenue streams, and they are all spaced apart chronologically so that the movie can make money by moving it onto a different platform over the course of about 18 months. Video games do not have that luxury, as of right now.

Especially with Day 1 releases on GP, which GD also agrees with me on as far as that aspect of it

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What happened with the other industries is big checks were written for a while until the platforms didn't need the content creators anymore

Pretty ridiculous to suggest it was a one way street. A significant part of Netflix's pivot to first-party content is the ballooning prices for streaming rights and companies like Disney just balking at the idea of having their content on a third-party streaming service.

 

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Platforms like Microsoft's Xbox Game Pass need that content to draw in subscribers, but the long-term effect could be dire for the industry: People stop buying games directly, and start paying for subscription services instead.

Yeah, because people have stopped renting/buying movies directly because of Netflix, right?

 

"But the physical media sales are down!!1"

 

Yeah, and digital media sales are up. Box office numbers are up. Direct to consumer sales are dwarfed by subscription revenue, sure, but it's hard to take an argument that says subscription services have negatively impacted content creators when direct to consumer sales are still growing and the overall revenue has doubled as a result of Netflix.

 

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If you destroy the system of purchasing and replace it with a subscription model, then the subscription model is all that's left. It's just Netflix and Blockbuster; instead of renting per video, you're paying for subscription services.

Nothing is being destroyed. This is such shitty fear mongering.

 

Blockbuster lost marketshare to Netflix's DVD rentals by mail, Redbox kiosks, and VOD rentals. Their struggles predate Netflix even having a Streaming service and their bankruptcy occurred years before streaming became the norm. I mean shit, Blockbuster Canada went into receivership less than 6 months after Netflix launched in the country because they were $70-million USD in debt and when Dish bought Blockbuster US they didn't want the Canadian stores.

 

It is fucking retarded to blame streaming for Blockbuster's failure. They were circling the drain well before that.

 

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These subscription services could mean the end of the traditional direct-to-consumer sales of individual games, where the sales trajectory over time looks like a downhill slope with a (hopefully) long, tapered decline. 

Nobody watches movies in theatres, buys DVDs/Blu-Rays, rents from Redbox, or rents/buys from VUDU/Apple/etc. Streaming completely eliminated traditional direct to consumer sales. :lemming:

 

Garbage fucking article, good god.

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