Keywords: Netflix, film industry, distribution, exhibition, brand, algorithm
INTRODUCTION
What defines film? Format is not the answer, considering the industry transition to digital cameras did not disqualify the film label. Perhaps the defining factor is more abstract? I think the answer lies in the experience of film. I think a debate about the experience of film will soon consume the institution of film (by which I refer to the filmmakers, critics, theorists, studios, festivals, distributors, exhibitors, et cetera). Exhibition is a core component of this experience, but most important to my thesis is how changes in distribution have created changes in exhibition and consequently ignited this debate. Distribution and exhibition have been linked throughout film history, especially as the introduction of new technologies such as television, physical formats, and the internet opened new viable pathways for distribution that drifted further from theatrical exhibition. Netflix dramatically altered the exhibition experience of audiences by prioritizing distribution to the home instead of theaters. The company Netflix was founded in the United States in 1997 and, by the end of 2019, Netflix’s US subscriber base had grown to 61.04 million subscribers of a global total 167 million subscribers (Watson, “Number of Netflix Paying Streaming”). During the same period, the number of theaters in the United States declined 22 percent from 7,480 to 5,869 (Watson, “Number of Cinema Sites”). These numbers only hint at a larger narrative about how Netflix evolved as a distribution service and brand, how it created a competitive marketplace of major and minor streaming services, and how it introduced challenges to the established film industry. Said challenges include Netflix’s popularization of home streaming, acquisition of “Original” content, and declination of subscriber agency through a recommendation algorithm. Netflix created an existential dilemma about the experience of film and the importance of exhibition in relation to that experience.
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