Is Netflix the Future of the Movie Industry?

In recent weeks, there has been a lot of talk about what Netflix is doing to stay ahead of the competition. They have been locking up deals with major movie distributors like DreamWorks, television companies like PBS and are being compared to the former giants of television, HBO. There has been a lot of talk recently that Netflix is building its formula for success off the model that companies like HBO and Showtime created. Is it true that Netflix is the future of the movie industry?

A lot of people say the comparisons between Netflix and subscription channels like HBO and Showtime began when Netflix created their own exclusive show to be streamed on their service. This is something that HBO did several years ago when they realized they needed more than just popular second-run movies to keep their subscribers happy to dish out whatever fee they wanted to charge. With the ever-going popularity of Netflix originals like House of Cards and the fourth season of the cult classic television show that used to be on Fox, Arrested Development, the comparisons will continue to come.

The business plan used during the startup phase for HBO, Showtime, Cinemax and other subscription services is the same one that Netflix seems to be following. Much like those channels back when they were created, Netflix is also seeing a good amount of competition from companies like Hulu Plus and Amazon that are trying to take their subscribers away. Each company has their own exclusive deals with certain movie distributors and television networks, but right now, none of those companies seem to be able to compete with what Netflix is doing.

While Netflix may have recently lost all their Viacom titles to Amazon, they have added more than 300 hours of original programming with their DreamWorks deal. They continue to produce and work on more exclusive shows including the highly acclaimed Orange is the New Black, which hasn't even debuted yet, but was already picked up for a second season. Add in the fact that Netflix was able to steal away New Girl from Hulu Plus within the past several weeks and it is easy to see why the company is doing so well.

If Netflix is going to keep their momentum in the internet streaming business, they will need to ensure that the shows they put all their money into produce ratings. For every House of Cards they have been working on that has been overly successful, they also have feature films like Shotgun Wedding which turned out to be big busts with subscribers. That's the nature of the beast and is something that HBO and Showtime had to deal with when they started up. If Netflix can adjust properly, they should be alright.
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