Netflix keeps picking up awards
Whereas Netflix’s (NFLX) Mexico-based film Roma did not win the Academy Award for Best Picture, it took home three other Oscars. And Roma wasn’t Netflix’s only success story at the Oscars—the video streaming giant also won the Academy Award for Best Documentary (Short Subject) for Period. End of Sentence.
According to The New York Times, the video streaming giant spent $25 million–$30 million on promoting Roma. During the fourth quarter, Netflix’s marketing spending rose 56.6% YoY (year-over-year) to $2.7 billion. Netflix probably spent tens of millions of dollars on Academy Award promotions, as Oscar wins could rope in more talent. Media giants such as Disney (DIS) are stripping content from Netflix as they get ready to launch their own services.
Netflix’s array of quality content is nibbling at Hollywood’s revenue
According to Recode, Hollywood legend Barry Diller said, “Hollywood is now irrelevant,” and that “Netflix has won this game.” Netflix recently started divulging viewership numbers for some of its popular content. Netflix’s Sandra Bullock film Bird Box went viral, with a whopping 80 million households watching the movie. The company’s recent disclosure of those figures could mean viewership is rising quickly.
The video streaming company has been able to draw talent, and its ability to consistently produce quality content is a key factor driving its growth. The convenience of watching top-notch movies or content while snuggling at home is eating up US box office revenue.