The generation of revenue by Netflix films is primarily achieved through subscription fees. Instead of relying on theatrical releases or individual sales, the streaming platform incorporates film viewing into its overall subscription model. Members pay a recurring fee for access to a library of content, which includes both licensed titles and original productions, among them, movies.
This approach provides several advantages. It cultivates a stable revenue stream, as subscribers provide consistent income irrespective of individual film performance. Original films also serve as key drivers of subscriber acquisition and retention, encouraging individuals to sign up or remain subscribed to access exclusive content. Historically, this model has proven successful in disrupting traditional distribution methods and establishing a direct-to-consumer relationship.
