business news in context, analysis with attitude

All Things D reports that Netflix, having thrown down a competitive challenge to traditional television networks by producing its own series - "House of Cards" and the revival of "Arrested Development," for example - now is doing the same thing to the movie industry.

The story notes that the company's "content boss," Ted Sarandos, has said several times in recent days that the company is likely to start investing in movies that would run for the first time on the Netflix streaming service.

“What we’re trying to do for TV, the model should extend pretty nicely to movies," he said. "Meaning, why not premiere movies on Netflix, the same day they’re opening in theaters? And not little movies — there’s a lot of ways, and lot of people to do that [already]. Why not big movies? Why not follow the consumers’ desire to watch things when they want?”
KC's View:
There have been suggestions in the media that there is no way that Netflix will ever be able to get movie studios to agree to debut major movies via streaming, at the same time as they are being shown in theaters. But I'm not sure that this is true. After all, it wasn't that long ago that few people would have guessed that Netflix would get into the series production business. Now, not only is Netflix doing it, but so is Amazon, seeking differential advantages and dedicated content consumers.

While there are a lot of movies that should be seen on the big screen - Gravity instantly comes to mind - there are plenty of movies that might get a lot more exposure if they were seen on a multitude of platforms simultaneously. Someone just has to prove out the economics … and it is a pretty good bet that the company that does it will be Netflix.

By the way, on a related subject…

Yesterday, MNB took note of a study from the American Academy of Pediatrics (AAP) officially recommending that parents should ban the use of electronic media during mealtimes and after bedtime, suggesting that "excessive media use is associated with obesity, poor school performance, aggression and lack of sleep."

Well, good luck with that.

Because National Public Radio's Marketplace reports that "a new study from the group Common Sense Media found that 38 percent of children under two have used a mobile device, like an iPhone or tablet computer. That’s up from 10 percent just two years ago."

The story goes on: "Media companies have noticed. Disney just announced its new show for preschoolers, 'Sheriff Callie’s Wild West,' will debut on an app and only later come to TV. Disney’s own research found more than half of households with children now have tablets."

One can assume that other companies will follow suit … looking to provide content to different platforms in the same way that Netflix is looking to attract fresh content to its platform.

It is all about businesses not accepting the limitations that go along with traditional business models, and looking to find innovations and differential advantages wherever and whenever they can.

It is all about ignoring conventional wisdom, because being conventional is no way to run a business.