How do movies earn money by releasing freely on Netflix instead of in theaters?

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P.S. – By Netflix, I mean streaming platforms be it Prime, Disney Hotstar, or any other.

We hardly see ads on some of these platforms, and a percentage of our annual membership fee seems insufficient considering how much some use it and share it with friends and family too, who otherwise would have to pay for the tickets if they were to watch it in the theater. I wonder how are they turning a profit or breaking even with this model

In: Economics

4 Answers

Anonymous 0 Comments

Netflix and other streaming services pay a fee to play that movie. Either a certain amount per viewing of the movie, or a very large sum of money up front to show it.

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