Part 4/13:
What’s driving this shift? The answer lies in the evolving business models and economic realities of the industry. The rise of streaming platforms such as Netflix, Disney+, and Amazon Prime has dramatically altered the way films and TV shows generate revenue.
Whereas traditional theatrical releases brought in substantial box office returns, streaming services treat content as a “loss leader”—investing heavily upfront to acquire or produce content that retains subscribers and attracts new ones. However, these investments don’t scale like the old theatrical model; a $200 million blockbuster on streaming platforms doesn’t guarantee proportional revenue.