Quote:
Originally Posted by Rochard
So like I said, they missed the boat... They release them through iTunes, which means Apple gets a cut... The music industry fucked up - instead of becoming both the producer and the distributor, now they have to share their profits with iTunes. Same with the movie industry.
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Movie companies are the producer and distributor. They just do not run the platforms.
Hollywood actually did it correctly with their model. Instead of setting up their own service and having the massive costs they instead can now license their product to multiple streaming services (NetFlix, Amazon, Verizon/Redbox, Apple etc). If one of those companies want exclusive rights they pay a high premium. The studios then only license out the streaming rights after all other distribution channels have been completed (usually). Theater, second run theater, DVD, premium cable, basic cable, then streaming.
On top of that, each studio is seeing a windfall licensing their back catalog to every platform. Its a great example of an industry protecting their content, maximizing the value of that content and embracing technology to increase their profits.