December 9, 2020
Discovery is the biggest challenge facing the new entertainment landscape of endless choice, said Netflix co-founding executive and former Redbox president Mitch Lowe.
“I think if anybody can figure out how to solve this problem for big segments of the population, it’s a real big opportunity in the business, and no one’s doing it,” he said during a keynote presentation for the OTT.X@Pipeline 2020 online conference Dec. 9.
“On one side, people say they want all the choices in the world, but on the other they go, ‘But I don’t want to spend time wading through them,’” he noted. “[At kiosk rental company Redbox] we found that when we created that light box, that has I think 66 box arts on it, that was the maximum people could go through. Anything more and anything less was counterproductive and in fact constrained consumption.”
He also pointed out limitations of computer algorithms in helping consumers find what they want to watch, noting one algorithm he remembered that recommended that folks who watched Willy Wonka would like to watch The Shining.
Discovery is key because “people don’t want to work hard to find something good, but they also don’t want to spend their time watching something that they end up turning off,” he said.
Recalling his early days as a video store chain owner and president of OTT.X’s predecessor the Video Software Dealers Association, Lowe said his experience talking with customers informed his later, groundbreaking career path.
“What I learned one on one with customers was how they think about entertainment,” he said.
In fact, he noted, he met Netflix founder Marc Randolph at a video convention.
“If you look at my career at Netflix, I was really the video guy,” he said. “I was the guy who knew the entertainment industry.”
In a callout to the video store industry veterans at the online conference, he said, “It’s really wonderful to be back with so many familiar people. I think this is kind of a little bit of a homecoming.”
Asked about Warner’s recent decision to send new releases to its streaming service HBO Max concurrent with theatrical release, Lowe bemoaned the potential damage to the theater business.
“I absolutely love the experience in movie theaters,” said Lowe, who was also at one time CEO of MoviePass, a now-defunct theater ticket subscription service.
He noted the importance of a shared experience in theaters, where the audience can jump in tandem at a horror film or laugh together at a comedy.
He touted the subscription model for theaters, which some chains such as AMC have instituted.
“In the end, the entity or the business that has that one to one relationship with the consumer is the real winner,” he said, and that’s “why companies like AMC did not like companies like MoviePass getting between them and their customer.”