Eli5: how do movies that go straight to streaming generate money?

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So I just watched the new Prey movie. It was great really enjoyed it. It came to streaming directly (Hulu for US), no theaters , no ticket prices, heck you didn’t even have to pay any money to rent it or buy it.

My question is, how does it make any movie if I didn’t have to pay any money to watch it.

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Anonymous 0 Comments

You are paying these services for content. They compete with each other to provide the most compelling content, even more so now as people are reducing their discretionary spending. In order to compete for your dollars with other streamers, they need unique and compelling content that makes you chose them. In a way they don’t make money on the movies, they make them in order to attract and retain subscribers by offering them stuff they can’t get elsewhere.

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