Netflix Nabs Steven Spielberg

Netflix Nabs Steven Spielberg The times they are a-changin’ in Hollywood, and even one of the staunchest supporters of traditional movie theaters is joining forces with Netflix. Steven Spielberg’s production company Amblin Partners said today that it signed a deal to make several movies for the streaming giant in the coming years. It adds to the roster of big-screen stars that have gotten in bed with Netflix—or sold out, as some Hollywood traditionalists might put it—including Martin Scorsese, Michael Bay, Will Smith, and Dwayne “The Rock” Johnson. For Netflix, the deal is another source of unique and attractive content that keeps subscribers happy. The streaming pioneer can afford to pay Hollywood stars amounts in line with the typical revenue-share proceeds from a tentpole theatrical release. Netflix plans to spend more than $17 billion on content this year. Netflix and Amblin didn’t disclose financial details of their agreement. It is also unclear whether Spielberg himself would direct any of the films that will be slated for Netflix. But he has reportedly been a defender of the traditional movie industry, a model that streaming services have spent years disrupting.  For Netflix, adding movies from Amblin in the coming years will add more must-see content to the service. That is critical to keep subscribers from leaving—reducing churn, or the number of subscribers who cancel each month. Netflix’s strategy has long been about giving subscribers access to a seemingly endless catalog of movies and TV series, and keeping the new content coming: There is a new original movie on the service each week. Netflix had close to 208 million subscribers globally at the end of the first quarter, each bringing in an average of about $11.50 a month. That is a lot of subscribers to shoulder the cost of a nine-digit production deal—the likely scope of the arrangement, judging by what Netflix has been willing to spend on other big-name Hollywood stars. It’s another nail in the coffin of the once-dominant movie theater-focused distribution model, however. Netflix’s Roma scooped up three awards at the 2019 Academy Awards—though it lost the Best-Picture Oscar to Amblin’s Green Book—despite the U.S.’s major theater chains refusing to show it. Netflix wouldn’t adhere to the industry-standard exclusive 90-day “theatrical window” before studios can distribute their movies elsewhere. Instead, Roma made it to only about a thousand independent theaters around the world, enough to meet the Academy of Motion Picture Arts and Sciences’ entry criteria for awards consideration. Within just a few weeks of its theater debut, the movie was available for streaming to any Netflix subscriber. Amblin’s films made for Netflix could follow the same script, even if it makes film buffs feel particularly nostalgic for theaters. Amblin will also continue to work with other distributors for its movies and TV shows besides Netflix.  Movie theaters are in the business of selling people an ephemeral product that disappears after they have consumed it. With Netflix, at least you can stream a film over and over again.