I feel like this move is too early for Netflix strategy-wise for non-power users. Yes, it may be the case that their early adopters plow through premium TV, but I'd like to investigate more to understand if people choose Netflix to have the option fo view movies like Transformers, licensed from Epix.
This move would happen eventually as creators gain access to streaming (distribution) platforms and platforms (like Netflix) start creating. Each player is only gaining margin and then succeeding in locking in users.
As a user, I would have preferred to see Netflix take the agency approach and allow streaming titles to take a percentage cut of revenue (although this would be difficult to calculate and bad for blockbuster hits who seek to increase risk and reward). This would mean Netflix competes on technology while content creators compete on price. If I were an investor, again I say this move is too early but one that, as the article mentions, was inevitable in the current model.
This move would happen eventually as creators gain access to streaming (distribution) platforms and platforms (like Netflix) start creating. Each player is only gaining margin and then succeeding in locking in users.
As a user, I would have preferred to see Netflix take the agency approach and allow streaming titles to take a percentage cut of revenue (although this would be difficult to calculate and bad for blockbuster hits who seek to increase risk and reward). This would mean Netflix competes on technology while content creators compete on price. If I were an investor, again I say this move is too early but one that, as the article mentions, was inevitable in the current model.