American film studio Paramount Pictures Corporation (PPC) has signed a multi-picture deal with streaming service provider Netflix Inc., to produce original films for Netflix.
Both the companies are investing a lot in creating quality content in terms of TV shows and movies, and this deal will further their effort while it would be an opportunity for Paramount to produce films outside theatrical system.
In the last couple of years, American media service providers like Netflix and Amazon Prime Video have recorded tremendous growth and popularity in some major world markets.
Recently, Paramount has recorded profits in three consecutive quarters. In comparison, while Netflix is struggling in markets like India and China, with more region-specific content – the company hopes to improve its market shares in the next couple of years.
In order to compete with the local players, Netflix must come up with local yet quality original content. While the streaming giant is already working in partnership with some local filmmakers and producers in different countries, Paramount-Netflix deal will further open up the possibilities.
Earlier this years, Netflix bought exclusive direct streaming rights of “The Cloverfield Paradox” after a deal between Paramount chairman-CEO Jim Gianopulos and Netflix chief Ted Sarandos. According to many this was a deal to save the film that was expected to be dud at box office.
However, it would be interesting to see the overall scenario in the near future when we have seen that companies like 21st Century Fox has already invested a lot in local video streaming services with the likes of Hotstar (in India, with a market share of 69.4% while Netflix only has 1.4%).
Nevertheless, with this new deal – both the companies will look for some new and innovative ideas to develop original content in order to compete in the market.