Netflix says Hollywood are neglecting certain movie genres in their chase for movie-goer bucks, and that the streaming giant is ready to step in and "make the movie business bigger".
With Netflix starting to produce Original Movies, including October's 'Beasts of No Nation', some analysts have labelled the move as one that may threaten Hollywood and the status quo. But Netflix's Chief Content Officer Ted Sarandos says that Netflix isn't going to compete with the likes of Star Wars from Disney, or Universal's Furious series, but instead, focus on movies that Hollywood studios and executives ignore.
"There are movies that people really want to watch that are no longer being made and no longer being put in movie theatres because studios don’t want to make them anymore," said Sarandos.
Sarandos says Hollywood is now too focused on making safe formulaic movies that are guaranteed to make money, if not domestically in the U.Ss, then internationally (for example, more than 75% of Warner Bros' box office income came outside of the U.S. for the blockbuster 'Pacific Rim'). This has created underserved markets, for movies that audiences want, but may be too risky internationally for studios to make.
According to Sarandos, the way studios share profits also means certain types of movies are more risky for producers of these films. Instead of paying only a small upfront fee and then profit sharing, Netflix pays a flat-fee to producers, making the financial proposition a much safer one.
In the end, Sarandos says all of this just means Netflix is committed to producing content that people want, and they can do it without having to compete head-to-head with the big studios.
