In today’s digital age, it’s hard to imagine a time when movies and TV shows didn’t instantly appear on streaming services.
But how do these films and series actually make their way to platforms like Netflix, Prime Video, and Disney+? The process is far from straightforward, involving complex licensing agreements and various stages of release.
In this article, we’ll explain the journey content takes to land on your favorite streaming service and how the licensing system works behind the scenes.
The Licensing Process: Not a Simple Sale
When you see a new movie or show available for streaming, it’s important to understand that films and series aren’t sold outright to these platforms.
Instead, studios and distributors retain ownership and enter into licensing agreements to allow streaming services the rights to offer their content.
These licensing agreements are typically specific to regions, periods, and formats. For example, a streaming service like Netflix might secure a deal to stream a movie only in North America for six months, after which the movie may move to another service.
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How the Release Windows Shape Streaming Availability
Content usually follows a structured sequence of release windows. The first phase is typically the theatrical window, where a movie debuts in cinemas.
After its theatrical release, the film enters the digital rental or purchase stage, also known as Pay-Per-View (PPV) or Transactional Video on Demand (TVOD).
After this phase, it enters streaming platforms under the Subscription Video on Demand (SVOD) category, where it becomes available to users who pay for subscriptions to platforms like Netflix, Amazon Prime Video, or Hulu.
TV shows, unlike movies, don’t have a theatrical release, but they generally follow a similar structure, though without the cinema window.
The Pay One and Pay Two Windows: Key Phases for Streamers
Once the movie exits its theatrical run, it enters a crucial phase for streaming services—the Pay One Window. During this window, the movie is available for digital purchase or rental, and it can also be licensed by streaming platforms.
Typically, movies available in the Pay One window are in high demand, as many viewers are eager to stream new releases.
For example, films like Barbie were available on digital rental platforms like Amazon and Apple TV soon after their theatrical runs before being made available to stream on platforms like Max or Hulu.
After the Pay One Window has passed, the movie enters the Pay Two Window, during which it is licensed to other platforms, often for a lower fee.
This phase is generally less lucrative but allows platforms to expand their content libraries without paying premium prices for newly released movies. For instance, a movie that was originally licensed to Netflix in the Pay One Window might be licensed to Disney+ during the Pay Two phase.
The Shift Toward Simultaneous and Staggered Releases
In recent years, studios have experimented with different release strategies. A notable trend is the simultaneous release, where movies debut in both theaters and on streaming services on the same day.
Five Nights at Freddy’s is a prime example of this approach. Although simultaneous releases have been seen as a way to drive immediate audience engagement, they can have mixed results.
Many studios prefer staggered releases, where movies debut in theaters first, followed by digital and then streaming availability. This approach ensures that films can generate revenue from theatrical ticket sales before moving to streaming.
The Role of Studios and Distributors in Licensing
So, who decides which streaming service gets access to a particular movie or show? The answer lies with the studios and distributors. Major studios like Disney or Sony typically license their films to a variety of platforms.
However, these studios also own their own streaming services. For example, Disney owns Disney+ and Hulu, so its films naturally end up on these platforms.
That said, studios such as Sony may license films to a range of services, including Netflix, Prime Video, and others, depending on the region and licensing terms.
Additionally, some streaming platforms, like Netflix and Apple TV+, also produce original content. These movies and shows often appear on their respective platforms first, bypassing traditional release windows and distribution channels.
Netflix’s Beverly Hills Cop: Axel F and Apple TV+’s Wolfs are good examples of films made specifically for streaming, offering a different type of viewing experience that skips theaters altogether.
The Complex Nature of Streaming Licensing
The system behind how movies and TV shows end up on streaming services is complex and often involves multiple licensing agreements. In many cases, movies are licensed to different platforms in different territories.
For example, while Barbie may appear on Max in the United States, it could be licensed to Netflix in other countries. On top of that, exclusive deals are a key part of the streaming landscape.
For example, Netflix might secure exclusive rights to stream a particular movie or show for a set period, making it unavailable on other services during that time.
Furthermore, as streaming services expand and new players enter the market, competition for licensing deals is increasing.
This means that studios are more likely to negotiate deals with multiple services, sometimes simultaneously or in a staggered manner. As a result, movie and TV show availability can vary significantly by region and service, contributing to the confusion for viewers.
Conclusion
In conclusion, the path a movie or TV show takes to arrive on a streaming platform is influenced by a series of licensing agreements and release windows that involve complex negotiations between studios, distributors, and streaming services.
Understanding these processes helps explain why some movies arrive on streaming platforms faster than others, or why certain films are available only on specific services.
As the streaming industry continues to evolve, these licensing practices will undoubtedly become more intricate, with studios and streamers negotiating to secure the best content and maximize their revenue.
People May Ask
1. Why are movies not available on all streaming platforms?
Movies are licensed to specific platforms based on agreements made between studios and distributors. These deals vary by region, time, and exclusivity.
2. What’s the difference between Pay One and Pay Two windows?
The Pay One Window refers to the initial period when a movie is available on streaming platforms after its theatrical release. The Pay Two Window follows, during which the film is licensed to other platforms at a reduced rate.
3. What is a simultaneous release, and how does it work?
A simultaneous release is when a movie debuts in both theaters and streaming services on the same day. This strategy is less common and can impact box office sales.
4. Can a streaming service get exclusive rights to a movie?
Yes, streaming platforms can secure exclusive rights to movies, often driving subscriptions by offering content that is unavailable elsewhere.
5. How long does it take for a movie to appear on a streaming service?
The time it takes for a movie to appear on streaming services after its theatrical release varies, but typically it can take anywhere from a few weeks to several months.
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