> Why would they? Why would a studio decide to reduce their gross and therefore their net by going with a less profitable model?
I don't think the bigger ones will in the short to medium term. But if the gross is lower, then they're also paying less to actors and marketers (streaming services will "freely" market what they think will be popular titles), reducing the overall budget, and reducing the risk profile. The studios themselves may end up making more profits. In any case, that's why I mentioned the smaller budget films transitioning to such a streaming model may force the bigger ones to follow suit.
> No more than Honda and Toyota put an end to the "scam" of American automakers.
Scam was the wrong choice of word here, but do you understand the point I'm trying to make? A similar analogy that works in my favour is Steam as a distribution channel, undercutting physical disk distributors. Games became a lot cheaper, but the AAA titles still ask for and receive quite a high price comparatively.
I don't think the bigger ones will in the short to medium term.
At some point, in the distant future, it's likely that movie distribution will be radically changed. PPV and streaming from day 1 but that's highly unlikely.
For that to happen, alternate means of distribution would need to be more profitable for the studios than the status quo. If movie attendance drops enough that it will bring in more money to partner with Netflix, Hulu or some as of yet uninvented streaming service; then and only then will it happen.
We already have the straight to video model for small budget films and Mockbusters. For those, it makes sense. They are made on limited budgets because the producers know that there's never going to be a theatrical release and the target market is very narrow.
There's also the wrinkle that digital projectors have lowered the cost of releasing a film. There are no longer film prints to produce, quality control, deliver, track and pickup.
It might happen one day but no time soon.
A similar analogy that works in my favour is Steam as a distribution channel, undercutting physical disk distributors. Games became a lot cheaper, but the AAA titles still ask for and receive quite a high price comparatively.
I can't help but notice that GOG came along and started selling classic games at even lower prices than Steam and ever since, I have seen some excellent Steam sales.
I don't think the bigger ones will in the short to medium term. But if the gross is lower, then they're also paying less to actors and marketers (streaming services will "freely" market what they think will be popular titles), reducing the overall budget, and reducing the risk profile. The studios themselves may end up making more profits. In any case, that's why I mentioned the smaller budget films transitioning to such a streaming model may force the bigger ones to follow suit.
> No more than Honda and Toyota put an end to the "scam" of American automakers.
Scam was the wrong choice of word here, but do you understand the point I'm trying to make? A similar analogy that works in my favour is Steam as a distribution channel, undercutting physical disk distributors. Games became a lot cheaper, but the AAA titles still ask for and receive quite a high price comparatively.