It was thought original streaming films are on the chopping block amid cuts in spending across video streaming. Industry leader Netflix, however, reiterated a full-throated commitment to made-for-streaming films, both big and small, in its quarterly earnings call Thursday.
“There is no appetite to make fewer films, but there is an unlimited appetite to make better films always,” Netflix co-CEO and longtime content czar Ted Sarandos told investors. “We want to have a lot of movies.”
That’s clearly genuine, and not just a corporate kiss-off, because to mislead investors would have severe legal consequences. A New York Times article recently asserted that Netflix was retreating from original movies with fewer and less-expensive films, which Sarandos flatly denied. A change in Netflix original films, bringing in executive Dan Lin, contributed to retrenchment speculation.
The upcoming Netflix original movie slate includes and “Beverly Hills Cop: Axel F” (featured image); dry-humor/drama “Hit Man” starring “Top Gun: Maverick’s” macho Glen Powell; romantic comedy “Mother of the Bride” starring Brook Shields; and part 2 of the big-budget sci-fi action film “Rebel Moon.”
What’s going on? Moves are magnets for cinema awards, which boost subscriptions because those who pay for household streaming subscriptions are often are swayed by perceived quality. Netflix movies have won 23 Oscars; the Netflix website says it employs 15 awards marketing consultants (they have an uphill battle because it’s believed Academy Awards voters penalize Netflix because of truncated cinema play) augmenting a 40-person in-house staff.
Original movies were thought to be in jeopardy because the video streaming industry pivoted from growth-at-any-cost and a land-grab mentality from 2019 to 2022, when Disney+ and others launched or bulked up. Then Netflix reported poor subscriber count in April 2022, which prompted the investment community and streamers to abruptly scale back ambitions, realizing maximum growth was a lower ceiling than initially forecast.
Netflix remains the streaming industry leader with 270 million subscribers worldwide, and an annual content budget of about $17 billion, which dwarfs rivals. That’s a staggering figure, nearly double what Hollywood spends each year on theatricals. That Netflix spend is not all devoted to originals, but fragmented with new initiatives in live sports and gaming, plus acquiring popular existing content.
In content, films are less valuable than TV series, which engender long-term loyalty because of their episodic runs. But films are still important for content bulk, awards prestige, star-power and ability to be parachuted into schedules to fill holes. Acquiring theatrical films fresh from cinemas from major studios has gotten harder for Netflix because the majors keep their film rights for in-house streamers. Netflix, however, does have an output deal for the streaming window for movies from Sony Pictures, the only major without its own in-house, top-tier streamer. Also, Netflix will acquire runs of older catalog theatricals.
While often focused on prestige for original films, it appears that Netflix aimed to make its “Beverly Hills Cop: Axel F” a crowd-pleaser, by harkening back to earlier installments (the “Axel F” is a reference to Murphy’s character Axel Foley). “Murphy will be joined by some familiar faces,” writes James Melzer on MovieWeb.com. “Original co-stars Judge Reinhold, John Ashton, Paul Reiser, and Bronson Pinchot will all reprise their roles from the original trilogy.”
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