MoviePass Owner Sued by Shareholders as Business Model Falters

Re:MoviePass Owner Sued by Shareholders as Business Model Fa... by scarface74 on Wednesday August 15, 2018 @10:38PM (#17771480)

HBO and all of the pay channels survive off of $10 a month subscriptions. It doesn’t have to be very good content. It just has to be good enough.

The real issue with Netflix is that it has to fund all of its content via subscription revenue. The upcoming Disney service doesn’t. By the time it’s content hits the service, it’s slready made money from theatrical releases, pay tv services(?), video on demand, DVD sales, cable TV etc.

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Re:MoviePass Owner Sued by Shareholders as Business Model Fa... by ryanwaggoner on Wednesday August 15, 2018 @11:26PM (#17771659)

Having Disney content available on all those other distribution channels makes their streaming service less compelling though. Whereas if you want to watch a Netflix series, you sign up for Netflix.

Also, Netflix is building a huge content catalog that has value outside their streaming ecosystem if they decide to leverage it that way. They could do theatrical releases and let cable do reruns of their shows. Maybe they will some day. But for now I think they see the greater CLTV in keeping that content exclusive to drive (and retain) monthly subscriptions.

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Re:MoviePass Owner Sued by Shareholders as Business Model Fa... by scarface74 on Thursday August 16, 2018 @12:26AM (#17771874)

Disney's streaming can afford to be less valuable. It's just additional revenue. Netflix's total revenue for 2017 was 11.69 Billion. Disney's revenue was $45 billion. Estimated are that once they combine with Fox, it will have revenue of close to $75 billion.

Another thing that makes Disney's content more compelling is that it's "evergreen" kids can watch the same shows over and over again. They will watch the first Toy Story movie just as excitedly as the last Pixar movie.

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