Is Netflix killing the cinema? - BBC News

Summary

Netflix's streaming service reached 139 million subscribers worldwide in 2018, with the USA as its top market. Despite concerns, cinema revenues increased by 2.6% in 2018, with the top markets showing growth. A study by NATO found that frequent streamers also frequently visit cinemas, suggesting no direct competition. Netflix faces challenges like debt financing and competition from Amazon and upcoming Disney Plus. Cinema lovers can rest easy as the battle for viewers' attention continues.

Takeaways

• 🎬 Netflix is revolutionizing the way people watch TV, leading some to question if it threatens traditional cinemas.
• 📈 In 2018, Netflix reached 139 million paid subscribers, three times more than five years prior.
• 🇺🇸 The USA is Netflix's largest market, with over 40% of its paid users based there.
• 💰 Netflix invested $13 billion in original content in 2018, including major blockbusters like 'Narcos'.
• 🏆 Netflix's film 'Roma' earned 10 Oscar nominations, including Best Picture, a first for the streaming service.
• 🍿 Cinemas are still thriving, with 2018 seeing global box office revenues reach $41.5 billion, a 2.6% increase from 2017.
• 🎥 The top three markets for cinema revenues are the USA, China, and the UK, all showing growth.
• 🔍 A study by the National Association of Theater Owners found that frequent streamers are also frequent cinema-goers.
• 💵 Netflix is raising subscription prices in the USA and Latin America to manage its spending on content.
• 🏰 Netflix faces increasing competition from rivals like Amazon and the upcoming Disney+ streaming service in late 2019.

Q & A

How has Netflix grown in terms of paid users as of 2018?

Netflix added a record-breaking number of paid users in 2018, with a total of 139 million worldwide accounts. This is three times the number of accounts it had just five years prior.

What proportion of Netflix's paid users are based in the USA?

Over 40% of Netflix's paid users are based in the USA, making it the company's top global market.

How much did Netflix invest in original content in 2018, and what are some notable examples?

Netflix invested approximately $13 billion in original content in 2018. Notable examples of this investment include series like 'Narcos' and movies like 'Bird Box.'

What milestone did Netflix achieve with its original film 'Roma' in 2018?

Netflix’s film 'Roma' received 10 Oscar nominations in 2018, including a nomination for Best Picture, marking a significant milestone for a streaming service.

What criticism has Netflix faced regarding its approach to releasing movies in theaters?

Netflix has been criticized for showing films in a relatively small number of theaters and for a limited time before streaming them on its platform, which some argue undermines the traditional cinema experience.

Is there any evidence that the rise of Netflix is negatively impacting cinema revenue?

No conclusive evidence suggests that Netflix is negatively impacting cinema revenue. In fact, 2018 saw a 2.6% increase in global box office revenue, reaching over $41.5 billion.

What study was conducted to assess the relationship between streaming and cinema attendance, and what did it find?

A study by the National Association of Theater Owners (NATO) surveyed about 2,000 people in the US who both streamed content and attended cinemas. The study found that people who frequently streamed also visited the cinema often, while those who did not subscribe to streaming services rarely went to the movies.

What challenges does Netflix face despite its success?

Netflix faces challenges such as financing its content spending through debt, raising subscription prices in the USA and Latin America, and competing with new platforms like Disney+, which is set to launch in 2019 and will remove Disney-owned content from Netflix.

How are streaming services today similar to the arrival of television in the 1950s?

Just as it was feared that television would kill off Hollywood in the 1950s, there are similar concerns today that streaming services like Netflix could negatively impact cinemas. However, both formats have managed to coexist so far.

What upcoming competition is Netflix expected to face, and how might this affect its content offerings?

Netflix is expected to face competition from Disney+, which will launch in late 2019. This new service will strip Netflix of several popular Disney-owned shows, which could affect Netflix's content offerings and subscriber base.