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


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.

In: 52

You pay for a subscription, if there are no good and new movies, you won’t pay. They need to add new movies so you will keep the subscription, that’s the money they make.

The movie makers were probably paid by the streaming service. Or get money to make it an exclusive

There are a few ways that movies that go straight to streaming generate money. One way is through advertising. This can be done by running ads before, during, or after the movie. Another way is through subscription fees. This is where people pay a monthly fee to access the movie.

Direct to TV movies on pay services have been a thing for ages, don’t think anything new is happening its not. This is 40 years old stuff, well trodden, nothing special.

All subscription video services make money the exact same way–all of them. By attracting new customers and retaining current customers. You provide content that does one or both of those. Any customer you gain and any customer you don’t lose means more money in the door. Your customers want content, they want movies, tv shows, new stuff, old stuff, whatever. Your goal is to acquire the right content at the right price.

Now as a side note, ‘the movie’ was sold to Hulu, so whomever made the movie made money by selling it to Hulu. Hulu makes money on customer’s monthly subscriptions, “the movie” makes money by selling itself to Hulu to stream there.

The simple answer is that the rights to stream the film are sold to Hulu. Hulu has to make that money back by subscriptions and/or ad revenue.

The streaming service pays the production company for the rights to show the movie. Sometimes the streaming service even has its own production company, like Netflix, Amazon, or Apple TV