First Netflix, now HBO Max: What is happening with subscription services?

[ethomaz]

Netflix said some months ago that movies will start to launching first on theaters before come to the subscription service.

This time Warner is saying similar thing near a rumored restructure of it HBO Max service.

Wanner was a bit more light with a rule where all their production should hit HBO Max in 45 days after theaters but from now it is not the case anymore.

Moving forward the new CEO said releases on HBO Max will be analyzed “case-by-case” and it could be early than 45 days, after 45 days and even never hit HBO Max anymore.

It is a big shift imo.
And seems like a trending in subscription services that moving more and more from the day one releases.

 

[Heisenberg007]

They all slowly realizing how unsustainable the subscription model actually is for certain types of businesses. Just because it worked for someone else does not mean that it'll work for you as well.

Expect more and more of these companies to go back to the traditional model.

HBO Max with the backtrack.
Netflix with the theatre releases.
Gamepass with not putting DLCs on GP.

A lot more to come.

 

[Gh0stnTheBashShell]

This fragmentation of services is what caused it, plain and simple. Everyone thinking that their services were so special they could stand on their own and BOY are they learning the hard way.

Don't be surprised If in the future there's basically 3-4 main services with add ons.

Disney+ with Add-ons
Amazon with Add-ons
Warner/Discovery with add ons
Netflix catalog folded into another service, remembered as an originator or becomes a smaller boutique service

Also, Netflix in the theaters has been them trying to get their movies recommended for awards for years now. That honestly just sounds like a natural progression of what was already happening.

 

[IntentionalPun]

Wall Street happened.

Nothing else matters but growth.

In the end Netflix isn't changing much. Honestly the HBO Max thing is all over the place too, the "rumors" ahead of the news were not accurate.

 

[ethomaz]

Wall Street happened.

Nothing else matters but growth.

In the end Netflix isn't changing much. Honestly the HBO Max thing is all over the place too, the "rumors" ahead of the news were not accurate.

That is why I did take the rumor… I think something will happen yeap because they need to merge services now with discovery.

But the move for a more spaced or not even release movies on subscription anymore come directly from the CEO in the earnings.

 

[SonyFanboyTears]

They all slowly realizing how unsustainable the subscription model actually is for certain types of businesses. Just because it worked for someone else does not mean that it'll work for you as well.

Expect more and more of these companies to go back to the traditional model.

HBO Max with the backtrack.
Netflix with the theatre releases.
Gamepass with not putting DLCs on GP.

A lot more to come.

Thats not what happened at all. Real world numbers dont support this at all.

Subscriber base numbers are no longer impressive and wallstreet has jumped ship, like they always do. Look up the history of NFLX on wallstreet. Its happened before but like with everything else, the investors come back.

You will see Netflix focus on profits instead of subscriber growth. Which is one of the major reasons why they are finally look at an ad tier.

 

[Hezekiah]

Disney+ now getting the inevitable sharp price increase despite adding subscribers this year, as they need to start making profits.

They've got a ton of expensive Star Wars and MCU shows coming (which will likely still look like shit).

This is what will happen in gaming with GamePass too soon enough.

 

[Heisenberg007]

Disney+ raises its price to $11 per month.

https://www.cnbc.com/2022/08/10/dis...percent-as-part-of-new-pricing-structure.html

 

[ethomaz]

Disney+ raises its price to $11 per month.

https://www.cnbc.com/2022/08/10/dis...percent-as-part-of-new-pricing-structure.html

Not just that… they will add ads to basic plans and launch a more expensive ad-free plan next year.

Side note they fir the first time reported bigger user base than Netflix (221m vs 220m).

 

[SonyFanboyTears]

Not just that… they will add ads to basic plans and launch a more expensive ad-free plan next year.

Side note they fir the first time reported bigger user base than Netflix (221m vs 220m).

Not surprising. It was always said that they were at $7.99 for their growth period. There was rumors years ago that Disney sees eventually being at $20 a month. The thought process behind it was you would spend on average $20 a month on a Disney movie to being with so they thought they could get to theta price point.

 

[Nym]

Former Warner employees believe these changes are just as much about business as they are about reshaping the ideological perception of Warner properties. It all points to the same end, they say: A rejection of left-wing or highly diverse content in favor of more homogenous, Middle America-friendly fare.

 

[IntentionalPun]

Side note they fir the first time reported bigger user base than Netflix (221m vs 220m).

That's.. not true. You have to add 3 streaming services they own together lol

 

[KiryuRealty]

They all slowly realizing how unsustainable the subscription model actually is for certain types of businesses. Just because it worked for someone else does not mean that it'll work for you as well.

Expect more and more of these companies to go back to the traditional model.

HBO Max with the backtrack.
Netflix with the theatre releases.
Gamepass with not putting DLCs on GP.

A lot more to come.

Netflix' theatrical releases are done to qualify for the Academy Awards, as the Oscars require a two-week run in a minimum of 10 theatres for a movie to be eligible.

 

[Heisenberg007]

Netflix' theatrical releases are done to qualify for the Academy Awards, as the Oscars require a two-week run in a minimum of 10 theatres for a movie to be eligible.

That's a good point. And while Netflix has released most movies for a 2-month period, they have already a few movies in theatres for a longer period, such as Glass Onions (30 days) and White Noise (35 days). That's clearly for monetary reasons.

Also, in 2022 alone they have released or planning to release more than 11 original movies in theatres. I doubt the sole reason is for Oscar awards because many of these movies have 0 chance of getting an Oscar.

 

[KiryuRealty]

That's a good point. And while Netflix has released most movies for a 2-month period, they have already a few movies in theatres for a longer period, such as Glass Onions (30 days) and White Noise (35 days). That's clearly for monetary reasons.

Also, in 2022 alone they have released or planning to release more than 11 original movies in theatres. I doubt the sole reason is for Oscar awards because many of these movies have 0 chance of getting an Oscar.

I used to work in theatrical distribution, and a theatrical release makes a lot less money for the studio than you might think. Netflix releasing movies to theatres in more about advertising than profit. Also, winning "craft" Oscars, like editing, special effects, set design etc do carry a fair bit of prestige. It isn't all about the big categories.

 

[Sircaw]

I used to work in theatrical distribution,

Pornhub does not count ffs.

 

[KiryuRealty]

Pornhub does not count ffs.

It didn't exist back then. lol

 

[Satoru]

I used to work in theatrical distribution, and a theatrical release makes a lot less money for the studio than you might think. Netflix releasing movies to theatres in more about advertising than profit. Also, winning "craft" Oscars, like editing, special effects, set design etc do carry a fair bit of prestige. It isn't all about the big categories.

Rule of thumb is that the movie needs to make ~ twice it's budget to actually break even.

 

[KiryuRealty]

Rule of thumb is that the movie needs to make ~ twice it's budget to actually break even.

Yes, and usually most big-budget movies aren’t regarded as profitable until they come out on home video or secondary rights sales like pay per view, premium TV and streaming.

The Chinese box-office boom changed things a bit, but now that China is blocking more western releases, the studios are looking toward new ways to monetize in order to maintain profits.

 

[Bryank75]

Maybe people are finally waking up a bit.... years ago we used to get better films, films made to appeal to actual audiences....made to thrill and excite, to be truly entertaining and enjoyable.

I don't want to get political but with the direct link between each piece of entertainment and the audience being broken by packaging everything as a service, it allowed these companies push any old agenda, any message they like without caring about if the audience was enjoying anything or getting their value.

I rarely see anything I want to watch on any of these services..... most of their content is pure crap and I really can't believe people waste their time with any of them.