Do movie studios make much money from streaming services?
Streaming services for music make notoriously little money for musicians unless you are a top tier selling artist. It can take thousands of streams to get the equivalent revenue that an album purchase would give them.
I understand that movie streaming services (Netflix, Amazon Prime, etc.) have to pay rights to movie studios to be able to stream for movies but how does that revenue compare to the revenue they made from older business models where people rent movies in a physical or digital form?
In short, is the new streaming business model as bad for movie studios as it is for musicians? If not, what is the difference?
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How do studios get paid by Netflix?
To be clear, Netflix does use the majority of their revenue to pay studios for licensing agreements. The Wall Street Journal reported in 2015 that of the Major Three, Netflix had planned on designating the most funds toward acquiring content \u2013 more than what Hulu and Amazon had projected on spending, combined.Is streaming more profitable than theater?
Not only is streaming growing in popularity while theaters are shrinking, but streaming is far more profitable, especially for studios with their own streaming platform.How do movies get on streaming services?
The movies available for streaming on a service depends on the distribution rights and media properties of the service's parent company. It's similar to the way that live TV streaming services must negotiate with cable channel owners to get streaming rights.How Much Money Can Filmmakers Make With Streaming Services? - Shane Stanley
Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
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