Netflix Now
Changing Hollywood’s game again with ‘instant movies’
And there it was. A trailer for a new Cloverfield movie. As it played, cool, I thought — I’ll probably go see that. Then, another thought: actually, if I’m being honest, that probably isn’t one I would go see in theaters. But I’d totally watch it when it’s out on “video”, my mind continued. And then the boom:
Only on Netflix. Tonight.
Wait. What?!
Netflix had just taken my internal debate and turned it on its head. We’re used to seeing ads that preview movies coming out in the next few months. They’re meant to plant the seeds of desire and to kick off a barrage of messaging to build anticipation for an opening. Not anymore.
Netflix took a complicated process and boiled it binary. Should I watch this movie tonight, right here where I’m sitting, yes or no?
Given that this trailer aired during the Super Bowl, I’m guessing millions of people said “yes” to that question. And thus, a new norm may have been born. One that no company outside of Netflix, Amazon, and maybe a few others can live up to: the instant movie.
A couple years ago, I found myself wondering what was next for Netflix. They were in a bit of a funk at that point, but I was certain they were gearing up to turn over another card. Since then, the stock has nearly tripled.
Last year, I outlined why I thought Netflix was one of the most interesting public companies (alongside Amazon — and to a different extent, Tesla) at the moment. Since then, the stock has doubled. The company would appear to be firing on all cylinders. And it’s because of moves like the one above.
The “what’s next” for Netflix has turned out to be not so much a change in strategy, but a combination of doubling down on what they were doing with original content while throwing out all preconceived notions of what Hollywood content has to be, and how it must be showcased and delivered.
Take Bright, for example. By almost all critical accounts, it’s a bad movie. But while this might matter if it were released in a traditional movie theater, it turns out that this doesn’t actually matter on Netflix. Well, to be fair, it probably does matter at least somewhat, but it matters far less. Because at the end of the day, critical response is still subjective, even in aggregate. As such, it’s not all-encompassing. There will always be people who disagree with an assessment and will enjoy a movie that others did not — or, at the very least, will want to see it. Netflix just lowered the barrier to make this happen.
Going to a movie theater is a complicated and increasingly expensive process. If you hear a movie sucks, you’re probably not going to bother. (And that’s even more true if the theater itself sucks.) But if it’s playing at home, on a service you’re already paying for…
Now, straight-to-video is nothing new. The difference is that this newfangled version doesn’t have to be the unloved stepchild to the theatrical release. It can stand alongside it in success, even if not quite yet in prestige. The current day John Cusacks and Nicolas Cages are rejoicing (and both are all over the streaming services with movies you’ve never heard of — but let’s be honest, may watch on a lazy Sunday). And we’re clearly going to see a lot more of this.
And other new/old ideas as well. Everyone knows movies and shows based on videogames are awful, right? Well, how about let’s just try to do an animated Castlevania show and see what happens? You know what? Brilliant.
Seven years ago (!), I offered up the idea of Netflix using its unique model to “save” cancelled cult hits. Arrested Development happened. Twin Peaks happened (though on Showtime). Firefly? Not yet. But many others have. Including Full House. Which is somehow a hit again.
But it’s not actually “somehow”, it was inevitable.
Next, what if Netflix convinces top-tier content to think outside the format? The Avengers movies are great, but given the sheer number of characters now involved, they’re getting too elaborate and convoluted for the two-hour film format. What if instead, they were five, 90 minute-long episodes? Who wouldn’t want to watch that? Who wouldn’t pay to watch that? Who wouldn’t pay a small premium on top of what we already pay Netflix to watch such content? No one. And Netflix has to know that. (Certainly Disney does!) The data is already there in the form of box office receipts.
The point is, it’s a combination of great content (or even less-than-great content), mixed with Netflix’s willingness to experiment with new formats and methods of distribution that is truly changing Hollywood’s game.
The reaction from the incumbents is going to be releasing first-run theatrical movies more quickly in the home for something like $30 to $50. But this will largely miss the point. It’s not just the window or the price, it’s Netflix’s eagerness to not just bend the rules, but to defy them and to create new ones.
It’s airing a trailer during the Super Bowl then pushing out the film immediately. Did such an ad pay for itself instantly? I wouldn’t bet against it. Nor would I against Netflix.
