Netflix is a movie studio. Well, really they’re a content studio, but what’s clear is that they really aren’t a video rental/streaming service anymore. They’re a movie studio with their own releasing platform and to make that abundantly clear they’ve joined the Motion Picture Association of America (MPAA). Thems the folks who make all dem ratings things… along with basically speaking for the movie industry as a whole when such things need to be done.
Maybe the membership dues are why they raised prices?
There are currently six major studios that are members of the MPAA, which brings in about $38 million in membership dues each year. Netflix will make seven for only a short period of time as 20th Century Fox is about to merge into Disney and thus no longer need to pay a separate membership due. This should give a hint as to why the MPAA accepted Netflix’s membership as they’re probably looking at the future of cinema and realizing they need the streaming giants on their side. Plus, as more of these companies produce their own content their views of copyright are aligning more and more with old school Hollywood. There’s also the fact that it will be hard to keep streaming only companies out when more traditional companies like Disney start producing content specifically for their streaming services.
One real question that this raises is if the MPAA will join the Net Neutrality fight. Netflix has been a strong supporter of such laws but the MPAA has stayed on the sidelines as they didn’t see a dog in the fight at the time. This might signal a change in that approach as the association looks at how Net Neutrality laws affect their members increasing streaming abilities.
Netflix Joins the Motion Picture Association of America [Variety]