Behind the Money How Netflix is upending Hollywood
Oct 2, 2024
Chris Grimes, the Los Angeles bureau chief for the Financial Times, offers insights into Netflix's remarkable resurgence and its impact on Hollywood. He discusses how Netflix transformed from a DVD rental service to a streaming leader, reshaping industry compensation models. Grimes highlights the tension between Netflix and traditional filmmakers, as well as the company’s strategies like introducing an ad-supported model and banning password sharing. The conversation also touches on the shifting power dynamics in entertainment as tech giants increasingly dominate.
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Netflix's Disruptive Rise and Early Challenges
- Netflix was initially seen as a renegade, disrupting Hollywood with its streaming model and rapid growth.
- Despite early success, the company faced challenges as competition intensified and subscriber growth slowed.
Netflix's Subscriber Loss and Strategic Shift
- In 2022, Netflix lost subscribers for the first time, leading to a stock drop and investor concern.
- Co-founder Reed Hastings announced plans to introduce ads and a password-sharing crackdown, reversing previous stances.
Netflix's Comeback Strategy
- Despite skepticism, Netflix's password crackdown and ad-supported tier proved successful, boosting subscriber growth.
- Capping content spending at $17 billion positioned them well for the writers' and actors' strikes.