The Gamepass Effect in film: The Netflix revolution is, for now, one of the most successful profit-destroying interventions in modern business history

[nongkris]

Can't help but see the parallels in what MS is trying, or unseccesfully tried, to do with Gamepass and what Netflix did to film and tv.

Turn a highly profitable industry into a loss leading subscription hellscape

You also get replies like this that sound identical to how Xbots talk about Gamepass. When the consumer is actually worse off because the new subscription content is 1000x times worse than what they'd get if they paid for it .

 

[nongkris]

Meanwhile the one industry (games) that didn't sacrifice all their profits for subscriptions like music and tv did actually grew! Shocking I know! MS is working to change this though

 

[Dr Bass]

What a shock.

 

[Nhomnhom]

I used to go to the movies pretty much every week and paid for cable. Now I share a few subscription services with my family and I could do without most of them.

 

[nongkris]

What a shock.

Yep, Microsoft is the godfather of Netflix's silicon valley business model, they know exactly that they are the only game publisher that would survive the race to the bottom that GamePass would create.

 

[BroodCorp]

That graph leaves out a lot of factors. Torrenting has to be mentioned as well.

 

[Gods&Monsters]

The same thing will happen to the video game industry if Microsoft continues this mass consolidation and move everything to cloud and subscription. Phil sold that dream to Nadella. To hell with everyone else, they want to be the only one standing.

There is not enough resistance from the industry besides Sony. It's like everyone else is blind or scared of Microsoft.

 

[nongkris]

That graph leaves out a lot of factors. Torrenting has to be mentioned as well.

piracy exists for games, movies, and music. the loss in profit in both movies and music stems directly from the devaluation through subscription services.

The same thing will happen to the video game industry if Microsoft continues this mass consolidation and move everything to cloud and subscription. Phil sold that dream to Nadella. To hell with everyone else, they want to be the only one standing.

There is not enough resistance from the industry besides Sony. It's like everyone else is blind or scared of Microsoft.

yep, thankfully it seems most large publishers were smart enough to avoid taking the gamepass bait. also it's often cheaper to just buy games outright thanks to steam/store sales than it is to subscribe to a publisher's subscription for $20 a month. Ubisost and EA both have a subscription service and I don't think either of them has really taken off.

 

[Box]

Most people just play COD or Fifa, a rental service makes no sense for 90% of gamers.

It won't be profitable to put either of these on Gamepass, you would miss out on millions of sales

 

[Cool hand luke]

Excellent thread that needs boosting. Given that all publishers unanimously hate gamepass and most regulators with power hate Microsoft, we know gaming won't descend into this chaos. Microsoft can't sustain this model without content, and they can't make or buy content.

Thank you, music and TV/movies, for your sacrifice.

 

[Zzero]

edit: nm

 

[Old Gamer]

People are going about this the wrong way. The real problem with the rise of gargantuan subscription/rental businesses isn't the erosion of profit: it's the complete perversion of the relationship between content creators, providers and consumers.

 

[JAHGamer]

And sadly, Sony, Ubisoft, and EA are following suit

Nintendo is the only one doing subscription services right in gaming.

 

[Bryank75]

That Righteous Path guy is full of shit.... how are consumers winning when the movie quality is absolute dog shit now compared to even the 2000's and early 2010's.

Sales and quality go hand in hand. Look at Disney's quality since going streaming... Netflix has nothing, everything that becomes popular on it is massively overhyped. Warner went from being absolutely brilliant to not knowing what they are doing at all..

Streaming is a disaster.

Excellent thread though and the twitter post, we need more of this awareness and push back on trends.

 

[FatKaz]

"consumers are winning"

Netflix quality has gone down the shitter, gamepass is following that trend, we aren't winning when we are having to pay for low quality content.

 

[Vertigo]

I’m just enjoying watching cinema collapse before our eyes.

 

[Gediminas]

"consumers are winning"

Netflix quality has gone down the shitter, gamepass is following that trend, we aren't winning when we are having to pay for low quality content.

yeah, netflix used to have such great series. not many left, pity really. overall i would say, quality went down in all those streaming services.

 

[Vertigo]

yeah, netflix used to have such great series. not many left, pity really. overall i would say, quality went down in all those streaming services.

Netflix needs to rework their entire direction to get users back on board without having to bank on once in a generation phenomenon like Stranger Things.

I’m honestly really happy with Paramount plus. Those Taylor Sheridan shows are all fantastic and Rabbit/hole is the best single season of tv I can remember seeing in years. What a great show!

Feature film revenues will continue to plunge when the only stuff coming out is capeshit. It’s so over outside of billion dollar tentpole Ip stuff to sell toys.

This is a transformative era. It’s kinda exciting to be honest

 

[nongkris]

"consumers are winning"

Netflix quality has gone down the shitter, gamepass is following that trend, we aren't winning when we are having to pay for low quality content.

That Righteous Path guy is full of shit.... how are consumers winning when the movie quality is absolute dog shit now compared to even the 2000's and early 2010's.

Sales and quality go hand in hand. Look at Disney's quality since going streaming... Netflix has nothing, everything that becomes popular on it is massively overhyped. Warner went from being absolutely brilliant to not knowing what they are doing at all..

Streaming is a disaster.

Excellent thread though and the twitter post, we need more of this awareness and push back on trends.

Agreed to both of you, it's no surprise that once the trojan horse of Netflix's business model wore off, that all of their great original programming eventually got cancelled and replaced with a thousand love island type reality shows. That's the future of gaming MS wants, bottom of the barrel freemium type content that will focus on user engagement instead of quality.

 

[Systemshock2023]

I hate Netflix but my family uses it so I can't cancel it. It's full of trash and the most expensive streaming service by far.