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Disney Switching To Netflix For Exclusive Film Distribution
An anonymous reader writes "When Disney films leave the theater and head for TV, they currently go through the Starz channel first. That's going to change in 2016. Disney has signed a deal to give Netflix the first crack at its animated and live-action films. Even if you're not a fan of either company, this is a bit of a big deal; Disney is ditching a traditional pay-TV service in favor of online streaming. (It also includes properties from the recent Lucasfilm deal.) The article wisely points out that pay-TV in general isn't in danger until the live sports situation changes, but this is a big step away from the status quo."
That's eons away in the context of consumer electronics. By that time, they might be the last one switching to online streaming.
Netflix: $1.5 billion in revenues in 2011 and growing.
Starz: $1.6 billion in revenues in 2011 and relatively stagnant.
Pretty much explains why.
Unfortunately, that's not how it works. It's grab the big bucks for an exclusive deal with one content distributor and F*** the people who aren't with that one. Other studios will get their big bucks from another distributor, so the only way consumers can have it all, is to pay for Netflix, LoveFilm (do they have that in the US?) etc.
Then, of course, they wonder why the Pirate Bay was popular?
Maybe it's because they have content from everyone, not to mention, in a format that plays on anything.