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Welcome to this week’s edition of Inside the Stream, the podcast where nScreenMedia’s Chief Analyst Colin Dixon and I take listeners inside the world of streaming video.
Hollywood is in a deep, dark box of its own making. On this week’s podcast, Colin and I explain why that is and what the implications are.
Earlier this week I wrote about how Matt Damon provided a “Hollywood 101” class in the fundamental economics of why making movies in the $30 million - $70 million budget range has become practically a non-starter in Hollywood (except very rare exceptions like “Stillwater”).
Then Colin shares all the relevant new data from DEG highlighting how SVOD has essentially sucked all the life out of DVD and digital sales and rentals of movies. Now Hollywood is going to exacerbate this trend by shortening the window of time from theatrical release to premiering movies on their own streaming services. This will effectively kill the so-called “Pay-1 window,” depriving studios of yet another once lucrative revenue stream. There are incredibly challenges times coming up for Hollywood studios.
The biggest losers in all of this are us, the moviegoing public. Today’s is not a happy podcast. Neither Colin nor I see any Hollywood endings to this story. But again, life is unpredictable, so you just never know.
Listen to the podcast (31 minutes, 4 seconds)