Do you like to Netflix and Chill? Netflix was not such a ‘chilled’ introduction for the Hollywood economy.
Much like Amanda Hocking, Marc Randolph and Reed Hastings saw a need in the digital market, where the use of the internet and online streaming was undoubtedly useful for the convergence culture – however had detrimental revenue effects for the producers. With large media conglomerates, such as Disney, 20th Century Fox, Universal Studio’s and Warner Brothers struggling with scalability and unpredictability of their blockbuster hits, the new platform offered unbeatable distribution and market access.
This was a new, exciting and terrifying opportunity that required balance on behalf of both the traditionalist film industry and emerging digital technologies. Netflix needed the Studios and the Studios needed Netflix. In order to be successful however, required two changes – artists and creators must embrace the idea of free access and businesses should seize opportunity, enabling it and allowing it to grow.
With intellectual property rights as a main concern, it was vital that both producers maintained contracts enclosing details of intellectual property rights, distribution and content creation.