Netflix Reported to Shift Focus to Blockbuster Movies

With over 130 million subscribers worldwide, it's not a stretch to say that Netflix is in a very dominant position in media, and is poised to take the lead in world cinema, yet there's still one problem, what has Netflix released that is truly big, blockbuster material?

Sure, they've released a fair few of their own movies over the years; Okja, Bright, and Beasts of No Nation to name only 3 examples in a long list, but none of their films have yet really to have the big, holy shit! blockbuster feel. Well, with a recent report, that may be set to change.

It's often been said that when it comes to movies, Netflix will usually pick up the projects discarded by other studios, but The Hollywood Reporter reports that insiders within the company are suggesting there's now an aim to take on bigger projects to give Netflix a bit more of a blockbuster catalogue of movies that would hopefully draw in more subscribers than they currently have.

Apparently, the department in charge of Netflix's movies are looking to procure bigger projects along the same lines as those films in the Marvel Cinematic Universe, or the Lord of the Rings movies. To build up the roster of big budget movies and massive a-list talent, Netflix is willing to spend big.

Scott Stuber, head of Netflix's movie division, has apparently already committed around $150-170 million for Michael Bay's next project Six Underground and is expecting to pay around $30 million upfront Ryan Gosling in order to secure him for the project. The report goes on to speculate that;

"Observers see the coming year as a make-or-break time for Stuber to establish Netflix's movie chops. "They are in the 'experimentation' phase," says CFRA Research analyst Tuna Amobi. "They have a track record in TV, but investors worry that budgets can get out of hand in film. Investors want to see a track record of success in movies, but Netflix hasn't clearly articulated a strategy."

In a marketplace increasingly driven by known intellectual property, the streamer has few, if any, brand-name film franchises despite spending $8 billion this year on programming. So Stuber has essentially started from scratch. And Netflix's insistence on releasing its originals in a few theaters day-and-date with their streaming debuts is not popular with many filmmakers who want the fanfare and box-office headlines of launching in multiplexes.

Netflix counters that its films released in 2018 have been viewed 850 million times by more than 120 million accounts globally, but it continues to refuse to release specific consumption data about its 55.9 million paid subscribers in the U.S. and 68.4 million subscribers abroad. The streamer released 33 films in theaters last year, but on April 16 CEO Reed Hastings told analysts that "defining distribution by what room you see it in is not the business we want to be in."

Netflix can afford to spend big when it comes to their desire toward these big blockbuster projects, it's been reported before that the company is expected to spend around $13 billion on original content in 2018, and that number is no doubt expected to rise as does their subscriber count.

Of course, it's no surprise that Netflix wants to do this. The big blockbuster movies regularly bring in the big bucks at the cinema, and it's no doubt a piece of this pie that Netflix wants. Of course their focus is on home entertainment, but if Netflix leans toward releasing movies in cinema, alongside its streaming service, it's inevitable that the company's revenue will grow even further if their investment in blockbusters pays off.

This approach, however, is a big risk for Netflix. Often, the big draw for blockbuster movies is the cinema going experience. There's nothing matching the huge screen, and surround sound experience of a big blockbuster like Avengers. Unless you have that cinema-like experience at home, are people really going to be hugely drawn to blockbusters if they're only streamed on Netflix? Perhaps the best approach here would be, as suggested, if Netflix were to try and push the massive worldwide cinema release of a blockbuster movie, even if they were to, at the same time, release it the same day on their streaming platform.

At least this will give film fans a choice. If they can afford to, and they prefer the cinematic experience, they will no doubt pay to go see it on the big screen, regardless of whether or not they have a Netflix account. Those who can't afford to, or who simply don't care about the big screen experience, will probably just watch at home, so it could be a win-win for Netflix should they play the game right.