The disruption that has occurred in the entertainment industry in the last weekend shows no signs of slowing down. Consumers stand to gain.
Last week, Disney announced it was setting up its own streaming services and would pull its content from Netflix. This week, Netflix responded by signing a huge content deal with producer Shonda Rhimes to produce shows for the streaming service.
Daily Variety reports Netflix may also reach an agreement with Disney for rights to Lucasfilm’s “Star Wars” and Marvel Entertainment titles after 2019. At the same time, it says the approximately $200 million it had been paying Disney for content will be plowed back into creating new movies and series for the streaming site.
CNN has added up all the Netflix commitments and estimates the streaming service will spend nearly $16 billion on new content in the coming years, as it fights off an increasing number of competitors.
Netflix model at the movies
Meanwhile, entertainment start-up MoviePass has more or less adopted the Netflix model as a way to help Hollywood's sagging box office numbers.
The company has announced on its website that for a reduced monthly membership fee of $9.95, members can go to as many movies they want, as long as the theater accepts debit cards. The theaters get reimbursed the full price of the ticket.
It works on the same principal as Netflix. Instead of charging a movie-goer for each ticket, the monthly subscription allows them to watch as many movies as they want, limited to one movie per day. Some screens, such as IMAX, are excluded.
Lifeline for theaters?
Still, it may be a hopeful sign for movie theaters, which have seen audiences decline over the summer. Last weekend, ComScore reported the top grossing movie in the U.S. was Annabelle: Creation, which brought in just $35 million, followed by Dunkirk at $11.4 million.
During the same weekend in 2014, Teenage Mutant Ninja Turtles raked in $65 million and Guardians of the Galaxy followed at $42 million.
Last December, MoviePass co-founder Stacey Spikes said the company's research showed a subscription model for theaters would help small, independent films find an audience faster since consumers were more likely to wait for these films to show up on streaming services if they had to pay for each movie theater ticket.