How Netflix Is Changing The World of Entertainment

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Geno Scala's selected picture of a dvd from NetlixJust a little more than a decade ago, most people were familiar with Netflix as the company from which you could rent DVD’s (pre-BlueRay) and possibly never return them. At the time of its IPO, the company only boasted some 600,000 members stateside. Then, with the rise of technology and a virtual shift in the ways which people consume media, the company almost went bankrupt. Today, however, the company’s valued at nearly $27 billion, and has, for all intents, changed everything about the way we entertain ourselves. Here’s how.

One of the first things the company did was switch the focus of the product to streaming movies versus renting them. This proved to be lucrative for the company, considering that most people interested in a particular movie probably want to watch it within the next hour opposed to within the next week. The understanding of this concept, particularly in the face of often illegal movie streaming sites, was a huge boost not only for the company but for Hollywood as well, which could no longer depend on VHS sales or even box office, since more individuals had devices from which they could see a movie in the comfort of their home. This transition exemplified the prescience and inventive nature of this young company, but it was only a foreshadowing of what was to come.

Presently, Netflix is known for its original works as a studio, with popular, award-winning shows like Orange is The New Black and House of Cards, among others. These new ventures have completely changed the television landscape. It’s not uncommon for people to spend hours or days consuming a full season of a particular show–the company uploads entire seasons to its platform for its customers to watch at their discretion–or what some call binge-watching. Subsequently, its direct competitors Hulu and, now, Amazon have ramped up their content in an effort to win over subscribers no longer satisfied with status-quo TV, such as that offered by network and cable programming. But that is changing as well.

In a recent article, the Business Insider details changes that companies like Fox, Viacom and Time Warner are making to effectively win back primarily younger customers. Those changes have included showing less commercials, which would seem taboo in the world of advertising, and in direct opposition to the companies’ objectives: to make profit. However, there is a consensus that consumers have different expectations for television, and in order to please, one would have to accommodate.

That isn’t all, however. Netflix and sites like it aren’t just showing less commercial ads, they’re actively and arguably producing better content. In a recent talks with Bloomberg, producer Kathleen Grace talks about “The Netflix Effect,” and how the company’s focus on better content has resulted in the entire industry seeking the best of the best, in terms of writing, stories and production, to compete for the limited time most consumers are now willing to give a program.

Netflix has already changed the world of TV and shows no signs of stopping. In fact, its recent venture into the movie world will prove just how powerful the company is and ultimately drive a similar level of competition as we’ve seen with networks. Perhaps the company is moving to a place where it will show only original content. Far fetched as it may seem, Netflix has already shown that impossible is nothing; we’ll just have to wait and see.

Louisiana Makes Headlines with Cap on Film Tax Credits

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Geno ScalaIt is no secret that major productions can bolster economies, revitalize neighborhoods, and transform communities. Different parts of the country often compete to attract major film and television players, and the tax credit is one of the most critical tools in a government’s arsenal to attract businesses. Louisiana recently made news by imposing an annual $180 million cap. This number is significantly lower than what Louisiana (sometimes called “Hollywood South”) usually certifies. Previously, the state annually allowed for $250-270 million. Louisiana’s Film Entertainment Association is considering legal action as a result.

The film industry’s presence in places like North Carolina and Michigan clearly indicate that when tax credits are diminished, jobs tend to follow as filmmakers flock to other locations that eagerly offer greater opportunities for cost abatements. As State Representative Henry Burns of Shreveport told local media, ““There are other states out there stretching their arms, wanting to welcome our film industry in there. And just that uncertainty sometimes will cause people to leave.” The state of Georgia, in particular, has long been a competitor who will likely see an increase in film-related activity as a result.

Movie makers and lawmakers alike are hoping to revisit the film credits debate next January with a new governor. Until that time, the greatest concern is that film credits already in the system may not be redeemable under the cap. Should that the case, then the cap might well be unlawful. That issue will be also be subject to further legislation.

Until these issues are more fully explored, all the remains to be seen is if the state can retain its proud tradition as a regional powerhouse when it comes to film production.