May 17, 2011
By the ZippyCart Content Team
Miramax and Netflix have just signed a landmark deal that brings a huge back catalog of classic films to their flagship streaming video ecommerce software platform. The deal comes in the midst of ongoing shakeups in the world of streaming video and movie sales.
Netflix has been the industry leader in home movie viewing for a while now. Constantly changing their delivery method, pricing schemes, and cultivating relationships with movie studios, they have remained on top. Probably their most successful ahead-of-the-curve move was to switch focus from home mailings to streaming content, which has served them well and is keeping them ahead of competitors like Hulu.
Actually, competition between the two (and other streaming sources) may have driven Netflix’s decision to drop their streaming-only plan to $7.99 a month, which they did only days after Hulu announced that it was dropping Hulu Prime to that same price. The cost for streaming Netflix with one DVD a month? $9.99.
As streaming content becomes easier to access and ecommerce software systems to deliver those movies become sleeker and more integrated with TVs and computers (Boxee Box and Apple TV plus iTunes spring to mind), the contest is going to be decided with content. Consumers will go to where the movies they want to watch are. Having classics like Pulp Fiction, The Piano, and Fargo on the list at Netflix just makes a good thing better.
Initially Miramax was reticent to let their properties go out digitally. Even companies like Fox and Universal, who gave Netflix the green light to stream their movies imposed a 28-day hold. Ostensibly this was to allow the studios to fully recoup profits on DVD sales through their own ecommerce software systems and through traditional stores.
Regarding their decision to finally loosen the shackles and dive in with Netflix, Miramax CEO Mike Lang had this to say:
“From day one, we’ve been very clear about the importance of digital and our desire to respond to the significant pent-up demand for our films — delivering to consumers whenever and wherever they want…This agreement is an important first step in our digital strategy. Netflix has always been a trailblazer, with a tremendous track record of innovation and quality customer service. We’re thrilled to now be in business with them as we build and revitalize the proud Miramax brand.”