Netflix : The United States Film Industry

891 WordsDec 4, 20144 Pages
One of the struggles for Netflix has always been getting rights to programming. In an effort to save DVD sales Hollywood studios tried to weaken their streaming services by withholding the rights or by charging more for newer movies. Big studios like Warner Bros., Fox and Universal made deals that allowed Netflix to use old movies but only if it waited twenty-eight days after the release of a new DVD before making it available to the public (Balio, 2013). Film executives believe that Netflix is taking the value out of movies by making them available anywhere, anytime (Kaiser, 2011). The fees do not stop them however. The more subscriptions Netflix receives, the more revenue they bring in and the more willing they are to pay the high fees to get films from the studios and the cycle is brought full circle, the more films, the more subscribers (Roth, 2009). Netflix faces a lot of issues when it launches internationally and can impact not only the United States film industry but the foreign film industries as well. Earlier this year when the company tried to launch in France it was met with a lot of criticism. France has a small but strong film industry and is worried that the introduction of Netflix will end it. The French government believes that “Netflix will undermine the complex system created by broadcasters and the government to protect a French film industry that is central to the country 's identity, and a significant part of its economy” (O’Brien, 2014). According
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