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Netflix, Inc. (NFLX) Changing the Movie Theater Business Just Like it Changed TV

Netflix Inc (NASDAQ:NFLX)

Netflix, Inc.  (NASDAQ:NFLX) is not resting in its effort to expand its lineup of original content and feature films. News has it that Netflix has picked up Girlfriend’s Day, a “noir comedy” in which Bob Odenkirk plays a greeting card writer who’s accused of murder and sets out to prove himself innocent. The strange part of the news is how Netflix is trying to disrupt the business of movie theaters with the launch of its movies.

Netflix Inc (NASDAQ:NFLX)

Last Thursday, Netflix was in the news after Clayton Christensen, the father of Disruption Theory used it as a perfect example of the theory. Christensen noted that Netflix succeeds in the on-demand video space because it entered the movie market quietly by meeting the needs of “movie buffs who didn’t care about new releases, early adopters of DVD players, and online shoppers.” Netflix has disrupted the TV space and now, it wants to disrupt the business of theaters.

Netflix wants to change how theaters do business

Netflix has been a major source of headache for media firms as many people cut TV cords to opt for on-demand video streaming. The media firms fought back by making it harder for Netflix to get fresh content for its platform. In response, Netflix started making its own original content and it started funding feature films.  However, when Netflix (NASDAQ:NFLX) took its films to the theaters, most of the theaters wanted to show the movies in theaters first before Netflix can air them online.

Netflix has stayed in business by avoiding big theater chains like AMC and Regal, and instead it is working with smaller theaters to show its movies. The deals with smaller theaters have thus given Netflix a chance to release it movies online and in theaters at the same time. The firm released Idris Elba’s “Beast of No Nation” in movie theaters and online at the same time. The new films that Netflix bough (Girlfriend’s day and Mercy) will also debut online and in theaters at the same time in 2016

Strong-arming theaters to do business the Netflix’ way

Netflix (NASDAQ:NFLX) has built a strong brand y and its status has a market disruptor has been confirmed. The firm has forced three rival TV networks in Australia to throw their differences aside to present a common front. The firm has already triggered the death of cable TV in the U.S. and media houses are now embracing on-demand programming. Now, the firm wants to strong-arm cinemas into showing new movies online and in theaters at the same time.

Netflix is making its user base become accustomed to the idea of seeing movies online at the same time that they appear in cinemas. The firm is already working with small theaters to build this model and big theaters would be forced to adopt the model as Netflix’s influence in the media space continues to grow.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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