Yes I understand they do not own the content, however they stream music. The wealthiest company can’t at least negotiate ? You’re just sayin nope like you know...the Netflix comment was just talk, only used “ if they wanted” once
I’m a filmmaker and can put the idea of a “Spotify for movies” into better perspective.
Netflix licensing (not originals) works as a last resort for film distributors. They will license to Netflix when they determine they have made as much money as they can on theaters, purchases, rentals, and pay channels. This is because the license wouldn’t even begin to pay back the movie’s budget/advertising budget. A 100 million dollar movie could make 100 million in theaters, then 20 million in rentals, then the interest wanes and they’ll only make another $800,000 in rentals over the next 2 years. Netflix will swoop in and say we’ll pay you 1 million for a 2-year license. This is the best business decision at this point, to take that deal even though it is only 1/100th of the original budget.
If a service was able to offer EVERY movie in the way that streaming music works, this would instantly kill all other revenue sources for movies. It would like cut theater attendance by 75%.
Studios thrive on the uncertainty as to whether a movie will eventually end up on Netflix. If you knew movies will absolutely end up on a service, you’d just wait (and you’d have plenty of movies to watch in the meantime).
So now that 100 million dollar movie will need around a 100 million dollar license to make up for this much disruption. With the maybe 25 million they make in the theaters being their profit rather than paying back their budget. This license will cost the service 100x Netflix’ licenses basically.
Trickling that down to the customer you can expect to pay 100x as much as Netflix.
This is all an exaggerated simplification but the real cost would likely be 10x as much as Netflix and kill the entire theater industry in the process. The process of starting this service would be the hardest part, as theaters would blacklist studios that licensed to the service as they would know it was their death (record stores anyone?). So the service would need 150 million very high-paying subscribers instantly for studios to agree, as any slow build would create a period in which theaters revolt AND the service can’t afford to supplement the lost theatrical dollars.
ALTERNATE TAKE: albums cost 100x less than movies to make. 10x more albums come out, but that still makes movies 10x more expensive to recoup. And that’s ignoring how many indie artists won’t recoup their costs on Spotify, but use it to gain a following to tour/sell merch. Once a movie is consumed, there is no tour and usually no merch outside of Star Wars and Superheroes.