If you were one of six major studios you once controlled everything, according to Diller. That's over.
As he and others have said, Netflix is way ahead of rival entertainment concerns -- especially now with 60 million U.S. subscribers -- when it comes direct-to-consumer (DTC) home video.
“Netflix has won this game,” he says. Which begs the question: What’s the new game?
Walt Disney, WarnerMedia, NBCUniversal are chasing after Netflix with similar DTC aspirations in the video streaming field -- to get consumers to buy premium TV content directly.
But at the same time, Disney, WarnerMedia, and NBCU are looking to wean themselves away from those carriage/retrans revenues.
That’s hard to do. While those revenue percentage gains are dipping a bit, they still register around 5% hikes over the last several years. All while seeing real-dollar stagnation or declines in traditional linear TV advertising.
As for Hollywood being irrelevant? Well, not for the old Hollywood business. Walt Disney still made $7 billion in theatrical revenues globally in 2018 and $3 billion in U.S. box office.
Netflix isn’t on this list -- right now, anyway. Its attention is on the video platform.
That said, it doesn’t mind using theatrical-based awards events, like the Academy Awards, to garner big hardware and consumer attention. Netflix is spending some $25 million just for Oscar advertising and marketing for its film “Roma.”
The new game? We’ve heard this many times before: Amazon.
The ecommerce company knows consumers buy lots of stuff -- nonentertainment products like electric toothbrushes, furniture, clothes, groceries. All have a strong advertising connection. Now toss in the lure of big entertainment content to its 100 million Amazon Prime subscribers.
Chess moves from this new consumerism is just beginning.