Netflix

Warner Bros. Discovery Shoot Themselves in the Foot and Act Like Everything’s Fine

Analysis /

It boggles the mind! At a time when every streaming service is racing to cram as much content as they can afford into their services, one decides to go in the opposite direction.

You’ve not doubt seen the stories; dozens of animated shows disappearing from Warner Bros. Discovery’s streaming services, almost-complete films scrapped, artistic endeavours cast off as mere implements of a tax-avoidance strategy, creators finding out their own shows were yanked via social media. All in all, it’s a series of bad news eminating from the company no matter who you are. And before you ask, no, the company’s stockholders didn’t fare any better either.

The most obvious question (why?) is a bit odious. Numbers were crunched, the costs of merging two companies have to be met, and the results say as much. Except the response is near-universal and the only people that are apparently pleased are those at the very top. The less obvious questions concern the decisions that revolve around the strategy. The company cans a load of content to save a buck; then what?

Well, on the one hand, the company thinks that by slimming down their offerings, they can create growth from a smaller core audience. On the other hand, that’s 20th Century cable network thinking in a 21st Century streaming age. Perhaps it’s no surprise given that HBO pioneered the premium approach in the first place by charging more, but offering the kind of entertainment you couldn’t find anywhere else. That’s a business model that’s over the hill though. Streaming is a winner-take-all game that Hollywood only realised too late when Netflix lapped up streaming rights for basically nothing and locked studios out of their own content for those crucial first years.

You see, with streaming, you either offer everything to everyone, or watch consumers use your competitors. Now everyone is playing catch-up and only Disney, with its exceptionally deep pockets, can lay claim to gaining ground. They did not buy 20th Century FOX just for kicks, they needed that company’s library, production capabilities, and brand to expand Disney+’s offerings to truly cater to everyone.

Where does animation fit into all this? Animation tends to appeal to a wide variety of audiences and tends to remain perennially popular. That makes animation good for a service’s library. Old shows can sit there, waiting to be discovered (or rediscovred). I cannot fathom that the marginal cost of storing and streaming content (compared to producing it) is enough to justify removing it altogether. How easy could it have been for WBD to simply stop producing new shows instead of obliterating them like they did?

The other aspect is that kids like animation. They like it a lot. Kids don’t have control over which streaming services they use, but their parents do. It’s not as emphasised now as much as it used to be, but a key focus of Netlfix’s marketing approach is families and Disney have followed suit. How many parents are re-evaluating their subscription to TWD’s services now? Throw in a cost of living crisis and it’s not hard to see where the trimmings might come from. Fast forward 5-10 years and you have a company that’s broken just about all of the Twenty Two Immutable Laws of Marketing.

So is animation a root cause or merely collatoral damage? I’d say it’s a mixture of both seeing as animation is expensive to produce but also tends to deliver greater long-term value; emphasis on the tends to. One could argue that both Warner Bros. and Discovery have failed to devote enough time, energy, and resources to their animated offerings, saw the writing on the wall, and simply decided to give up.

 

Warner Bros. Discovery Shoot Themselves in the Foot and Act Like Everything’s Fine Read More »

The Golden Age of Animated Cinema is Over

2 Comments / Opinion /

Eighty-something years is a pretty good run though, right?

All good things come to an end and animation at the cinema is no different. Cinemas are struggling and (at least in the US) audiences have been declining for a long time even as studios tout rising box office revenues to deflect attention from that. The COVID-19 pandemic merely bought forward the inevitable switch to streaming by a good five or so years; hastening the end of the every-man multiplex.

Which means the golden age of animation at the cinema appears to be over. The slow return of films (and audiences) to cinemas coupled with numerous studios’ decision to release films directly to streaming suggests that the cinema as a regularly occurring experience is finished.

…the larger discussion revolves around whether studios like Pixar can afford to create, and maintain the infrastructure to deliver, films costing hundreds of millions…

Lightyear is a symptom of this trend. Middling reviews aside, the film leans hard on Pixar’s brand without success. The studio’s other recent films have gone straight to Disney+; leading to staffers moaning on Twitter that the films are devalued as a result.

It’s a bit more complicated than that though. Films costs have to be recouped and the box office was the first route to doing so until now. Netflix demonstrated that film costs could be decoupled from outright performance and instead folded into overall subscriber revenues; you spend the money you have and not the money you’ll hope you have in an effort to maintain and grow income in the future.

Mainstream culture has changed and the concept of a monoculture where we all consume the same media is gone. We don’t all watch the same films (if we can even watch them all) let alone go to the same location to watch them. Complaining about films being denied their moment to shine at a movie house is anachronistic thinking. Parroting their performance when they succeed there is devoid of meaning. Saturday Night Live gets a lot of attention from media that intones a wildly influential show but the numbers watching, and the numbers of real people talking, tell a very different story. It doesn’t matter if SNL is actually funny; if everyone is busy watching something else to care, it can’t be a paragon of culture.

If anything, going straight to streaming is a sign of confidence in quality. Lightyear going to the box office is a sign that Disney figured they had to hedge their bets by recouping at least some of the film’s massive $200 million cost at the box office because their data most assuredly told them such a turkey wasn’t going to deliver any subscriber growth to Disney+.

I don’t agree with /Film’s take on Pixar’s future, especially since it focuses on the box office, and argues that Disney shouldn’t shy away from a studio who’s delivered hits in the past. I think the larger discussion revolves around whether studios like Pixar can afford to create, and maintain the infrastructure to deliver, films costing hundreds of millions if the return on investment isn’t as clear cut or as swift as the weekend box office.

Low Budget =/= Low Quality;

This is what Netflix has wrought: animated films that are decent quality yet low cost and delivered frequently. Large budget films exist because they had economics which supported them. What happens when those economics are no longer there or are unfavourable? Technology has also advanced to the point where technological prowess is kind of irrelevant. Will a $300 million film look better than a $75 million one? Probably. Will the audience notice enough to care…? Illumination’s success provides a definitive answer.

The Future?

What does the future hold? Like Spielberg, I agree (and have agreed since he made the remarks in 2013) that the cinema experience isn’t dead, but it will evolve into something that is consumed rarely; perhaps once or twice a year and with an increased focus on older films people want to see on a big screen with others. This will continue for a few decades until cinema itself becomes an anachronism like vaudeville, jukeboxes, and the cassette tape.

With the cinema in decline, what will animated films evolve into from here.

The Golden Age of Animated Cinema is Over Read More »

The Netflix Cuts and the Disposability of Contemporary Animation

1 Comment / Analysis /

The axe swung hard at Netflix’s animation department this week. Management were forced out and shows either cancelled or cut entirely. Such actions are hardly a surprise given that Netflix subscriber numbers fell over the past quarter, but more intriguing is the news of Netflix’s extensive use of data to create and produce shows. It all adds up to a new era of disposable animation.

Netflix

Animators are a proud bunch and rightly so. Animation is not an easy artform to learn, let alone master. Animators draw upon a legacy that stretches back a hundred years whose earliest works continue to educate and inspire. Live-action can’t quite say the same; nobody makes silent films anymore but while rubber hose animation is antiquated, it never became obsolete either. Such longevity may be coming to an end and while the cause is not a single one, one company looms large: Netflix

Alternatively the hero or villain of the entertainment business, Netflix nonetheless pushed the industry into the modern era by catching it off-guard with streaming. Everyone struggled to catch up, while Netflix attempted to cement its moat with original content in every shape and form. Animation forms a key part of that moat; all the better to keep Disney at bay by acquiring younger viewers before they know who Disney even is. Netflix never set out to replace your favourite cable channel, it set out to replace your entire cable service. Ergo the often contradictory personality of the company’s offerings. High culture critical darlings on the one hand, and bargain basement, lowest common denominator trash TV on the other.

Animation was not going to escape the same fate and for every Midnight Gospel, there were a half dozen DreamWorks spinoffs. Yet the allure of a creative space with minimal executive interference was potent. Numerous high profile creators joined and excelled at Netflix and much like Nickelodeon thirty years prior, the results showed.

A Ruse

Yet, one wonders if their endeavours were actually part of a ruse. Not in the sense that Netflix would cast them off once the audience was acquired (which may or may not be or become true), but rather that Netflix, in its mad dash to build a library of content and reliance on data to get it there, was willing and able to actively devalue their contributions by drastically increasing the rate of production. There was a time when Disney would put out an animated film only once every three years. Then it became one every year, then it became one a quarter. Now Netflix is releasing one practically every week.

The company uses data extensively and in a capacity far beyond what Nielson ratings can ever hope to provide:

To put it simply, if you’re watching any TV show or movie on Netflix, it knows the date, location, and device being used to watch, as well as the time of your watching. On top of that, Netflix also knows about how and when you pause and resume your shows and movies. They also take into consideration if you are completing the show or not, how many hours, days, or weeks to complete the episode or a season or a movie.

Ultimately, it tracks every action taken by the user on Netflix and considers it as a data point. How many metrics will be there in total which Netflix might be using for data collection?

People and the data they produce changes over time though. What you liked as a kid is not what you may like today or what you may like in ten year’s time. Netflix does not care about the past or future though. They only care about the now, or rather, the future as far as it takes to produce and release a film or show. They produce things to appeal to viewers now. To grab their attention now. To keep watching Netflix now.

Netflix’s credo: Why rewatch an old favourite when a sparkly potential new favourite awaits to be discovered?

Caring (or Lack Thereof)

Truthfully, do audiences really even care? Netflix zeroed in on a formula that’s worked and will continue to refine it as the data suggests they should. Audiences demand entertainment; artists are among the few looking for fulfillment and a call to a greater cause. The former are concerned with their immediate gratification, not with the effort it took to gratify them or what happens to those involved thereafter. American football satiates an immediate need for pleasure; the lasting physical and psychological damage done to the players is the last thing on viewer’s minds.

Creators pour their heart and soul into passion projects hoping they will provide a lifetime of enjoyment but the reality is a flash in the pan. Culture moves so fast and things have to hit instantly and powerfully to even create awareness let alone viewership. Hence Netflix’s policy of only starting any marketing efforts a month in advance of release; any sooner and audiences will consider it old news by the time they can watch, if they even want to. Like I wrote in my recent Oscars post: stuff released in 2021 may as well have been released in 2001; that’s how old they appear now. Animation is not safer on other platforms either; all of which have the same library problem Netflix did but additionally face breakneck production schedules to catch up and keep pace with the industry leader.

Consume and Throw Away

What this adds up to is a new disposablness of animation. Artistic endeavours designed to be popular now and not the future, to be binged instantly before spending an eternity in a library; only ever a click away but obscured by a thicket of new content. The latest news out of Netflix reinforces this fear. A fear that even the greatest is simply no better than the average and no less fitting of a similar fate.

A final word of warning: animation is not a genre but may as well be as far as audiences are concerned. Westerns are a genre, and as they increased in popularity they too became formuaic and disposable and have deservedly languished in limbo for the past half a century.

The Netflix Cuts and the Disposability of Contemporary Animation Read More »

What’s Really Interesting About the New Avatar: The Last Airbender Series

2 Comments / Analysis /

Were you surprised about the announcement earlier this week about a brand-new series of Avatar: The Last Airbender? I sure was, but outside what was discussed around the net this week, there’s a few things that make the announcement really interesting, and potentially game-changing.

…

What’s Really Interesting About the New Avatar: The Last Airbender SeriesRead More »

What’s Really Interesting About the New Avatar: The Last Airbender Series Read More »