Theater Group: Netflix Doesn’t Hurt Exhibitors

Netflix’s adamant strategy to release original feature films concurrent with theatrical distribution is not hurting exhibitor business, according to the National Association of Theatre Owners.

In fact, data from a survey of 1,400 respondents conducted by Ernst & Young found consumers of over-the-top video services are frequent moviegoers – well above non-streamers.

Respondents who watched at least one theatrical release in 2017, also streamed at least one hour of video per week. The ratio increased among avid moviegoers. Indeed, 33% of respondents who watched nine movies in the theater, also streamed at least 15 hours video per week.

“People who consume a lot of content do so across multiple platforms,” NATO spokesperson John Fithian wrote in a recent blog post. “The movie industry is not a zero-sum game.”

Fithian said it could be argued that Netflix undermines broadcast television and transactional VOD markets. Streaming services, Fithian said, can work “hand-in-hand” with exhibitors.

He cited Amazon’s decision to adhere to the tradition 90-day theatrical window for original movies, Manchester by The Sea and The Big Sick– the former generating Amazon industry awards (Best Actor for Casey Affleck and Best Screenplay for director Kenneth Lonergan in Manchester) attention, in addition to domestic box office tallies of $48 million and $43 million, respectively.

Fithian argues Netflix is leaving money on the table bypassing theaters, which have largely boycotted the SVOD pioneer’s movies due to its distribution edict.

Netflix has reversed course this year on original movies Roma and The Ballad of Buster Scruggs– titles the streaming service is heavily lobbying for Oscar contention in 2019 – reportedly at the behest of directors Alfonso Cuarón and Joel and Ethan Coen.

Both titles have received limited exclusive theatrical distribution in an effort to satisfy Academy Awards voters.

NATO cited distributor Neon, which last year reportedly turned down $12 million from Netflix to release I, Tonya in theaters. The film went on to generate Oscar nominations, including Best Supporting Actress win for Alison Janney and sell $30 million in domestic movie tickets.

“The transactional value for film is diminished [by Netflix’s model],” Neon founder Tom Quinn told IndieWire. “It’s an all-you-can-eat buffet, you can dip in and out, and if you don’t like a movie, you move on.”

NATO’s Fithian said exhibitors would welcome Netflix into the foldif it respected the theatrical window.

“Filmmakers and movie lovers will appreciate Netflix so much more,” he said.

 

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