Netflix has posted lucrative Q3 earnings, and while the company’s TV strategy remains strong, the streamer continues to languish in the business of making movies. Dan Lin, the company’s head of film, has declared that Netflix plans on making better movies… as previous executives have stated several times before. Matt Belloni and Lucas Shaw dive into the streamer’s earnings call, and how the company plans to tighten its film strategy.
Can Netflix crack the movie code? Netflix gained five million subscribers this quarter, rounding out to 282.7 million subscribers worldwide. Though it beat its estimates in almost every category, the studio movies continue to fall short. Dan Lin has been head of film for months and promises a change ahead. Following his predecessor Scott Stuber, this may be exactly what Netflix needs. “They were really giving people… I don't want to say carte blanche, but there was a largesse that was associated with working at Netflix,” says Belloni. “You could kind of do what you wanted to do.”
New sensations? The former Netflix strategy for movies was all about acquiring household names. In doing so, the company developed a track record of overspending on massive endeavors with established filmmakers. The high volume of projects under Stuber was not sustainable and there was little reward as several hotly tipped films failed to connect with audiences and critics alike. So, what does it mean when Netflix declares they will change course? “It’s not totally clear what the new strategy is,” says Shaw. “They talk a lot about how they want to make better movies, which is sort of like, ‘no duh.’”
Quality > quantity? Though Lin has not given formal interviews on his strategy shift for film, some ripples are starting to form. The goal will no longer be to push out movies at an influx, but rather to release four heavy hitters each quarter. Netflix remains strong-willed against traditional theatrical rollouts, but the choice to focus solely on streaming may limit the studio’s reach to certain prestige filmmakers. Then again, as Rian Johnson’s Knives Out sequel series deal has proven, some filmmakers may be swayed by lucrative financial offers. “They see their role as kind of replacing the studio programmer movie that used to be a hit in theaters,” says Belloni. “The mid-budget, star driven dramas, comedies, [and] rom-coms — those kinds of movies will be the bread and butter of Netflix.”