The Motion Picture Association of America (MPAA) just announced its annual theme report detailing how streaming services are shifting trends in the film industry.
Video streaming surpassed cable subscriptions for the first time in 2018. Subscriptions to streaming services reached 613 million, a 27 percent increase from the previous year.
Services like Netflix and Amazon made their mark at this year’s Oscars with nominations and wins. Netflix Original “Roma” walked away with three wins including best director, best cinematography and best foreign language film. The company also won an Oscar for its documentary “Period. End of Sentence.” With four Oscars in 2019, Netflix tied with Fox, Disney and Universal for the most studio wins.
Netflix is also getting more strategic with its content. In February, the service released “Black Mirror: Bandersnatch” an interactive film that allowed viewers to make choices for the main character. According to a GDPR request, the company recorded the decisions of each viewer, making it easier for Netflix to tailor future content to trends and users.
The company’s success can also be ascribed to its Black and brown viewers. A November report by Cowen Insights said that Netflix is outperforming other streaming services because of its minority-focused initiatives like Strong Black Lead on Twitter and its diverse content.
Earlier in 2019, Netflix joined MPAA highlighting its efforts to be taken more seriously in the film industry. Although the company is now a member of MPAA, its stats were not included in the study which used numbers from 2018.
Disney and Fox completed a $71.3 billion merger this week, putting Hollywood on edge for what is to come. Disney has already begun to remove its shows and movies from Netflix, gearing up for its own streaming service.
Cable subscriptions decreased in 2018 by 2 percent to 556 million; however, cable remained the leading revenue generator for video platforms, according to the MPAA. Cable television brought in $118 billion in revenue for 2018.
Other companies like Apple and Google are attempting to put their hats in the ring to compete in streaming; however, it seems like Netflix has a stronghold for the top position for years to come.