We’ve seen good movies and bad movies made by renewed companies like Dreamworks Animation Skg Inc (NASDAQ:DWA), Twenty-First Century Fox Inc (NASDAQ:FOXA) back when it was 20th, Time Warner Inc (NYSE:TWX) and many more less known. Now, we’re going to see films with Adam Sandler produced by the largest online streaming content distributor Netflix, Inc. (NASDAQ:NFLX), according to Bloomberg.
This comes just after Netflix, Inc. (NASDAQ:NFLX) has undergone an expansionary strategy in Europe. Depending on how the business goes through there could be lots of benefits coming from this new venture or vast expenses covering the costs for the production of less successful pieces.
“My belief here is Netflix is doing it to expand their international base, because it’s too hard to produce an original series in each country, but an Adam Sandler movie will go across the board internationally,” said Popcornflix.com executive VP David Fannon.
So, this is the optimistic view, in which Netflix, Inc. (NASDAQ:NFLX) develops content and uses its already brilliantly established distribution facilities to monetize the product right away. However, as Intermedia’s managing partner Leo Hindery pointed out, it’s wiser not to dwell much into the movie industry because it’s oversaturated with films highly-demanding in financing, which showed little success when they went to the theaters. He suggests it would be wiser for Netflix, Inc. (NASDAQ:NFLX) to act more like a buyer of content rather than producing on its own, despite the company’s popularity and possibility.
“5% of the audience watched any type of content on Netflix, this was only about a year ago. Now, 42% of viewers have watched the television show or movie on Netflix in September. That’s almost half. Can you imagine that kind of growth,” said Betty Liu.
Whether it will end up being a good or bad idea only time can tell, but in the context of the latest announcement, it’s very promising for Netflix, Inc. (NASDAQ:NFLX) to experiment with new opportunities.
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