Film District, a newly-formed film studio and distributor worked out a deal with Netflix, Inc. to stream new movies over the Internet just a few months after they are released on DVDs. Under the terms of the agreement, new movies from Film District will be licensed exclusively to Netflix instead of appearing on premium cable channels. Industry observers believe this deal reflects the new realities of changing channels for movies from theaters, home videos, and cable pay TV to online streaming. Netflix also has a similar deal with Relativity Media, the movie company that financed the highly-acclaimed boxing movie, The Fighter. Given the rapid and dramatic changes occurring in film distribution channels, how might partnerships or alliances such as that between Netflix and Film District be helpful to either firm in managing their distribution channels?
Answer to relevant QuestionsToyota Motor Corporation took extraordinary care in developing the channel and selecting the dealers for its Lexus luxury cars. The attention to detail in setting up the channel for the Lexus is reminiscent of the kind of ...Fitting new products to the channel members’ assortments may sometimes be a problem. When might this be the case? RadioShack, with over 6,500 locations worldwide, has been struggling for a number of years with an image of being “old-fashioned” or “out of touch” with new technologies. RadioShack was viewed by tech-savvy consumers ...Why is participation in the gray market attractive to many distributors and dealers? Discuss. Discuss some alternative strategies available to the manufacturer contemplating the passing of price increases through the channel.
Post your question