Can Subscription Services Take Over The Movies As Well?

Monthly subscription services provided by firms like

and

have changed the landscape of television and put big name networks at risk. Not only have such offerings pulled viewers away from traditional cable, but the two companies' forays into original programming turned into a smash success. Both firms have produced award-winning tv series, leading writers to flock to subscription-based services before pitching their ideas to major networks. This ability to turn the TV industry on its head has done big things for both companies' bottom lines, and now they are setting their sights on the silver screen.

Netflix recently debut its first feature film, "Beasts of No Nation" on its streaming service and in select theaters across the US. The film was unable to find a major studio producer, but was snapped up by Netflix for $12 million as the company began its efforts to make smaller, lower budget films. Amazon similarly is planning its own movie debut with a project from director Spike Lee later this year.

Netflix

"Beasts of No Nation" at only a handful of US theaters, in large part because most were unwilling to shell out for a film that was also available in viewers' homes. Because the film was made available to stream at home on the same day it hit theaters, the turnout was lackluster. Netflix was unfazed by the criticism, saying that its ultimate goal for the film was to get it out it in time to be a contender for the Academy Awards. Netflix says its movie making career is intended to make good movies and keep subscribers happy rather than to make money at the box office. Amazon is planning to do things a little bit differently by withholding its movies from its streaming service for several weeks while the films play in theaters.

By taking the pressure of box office numbers out of the equation, Netflix is fostering space where creative directors can work on projects they feel passionate about and giving them the ability to make films the way they believe they should be made. This approach is likely to bring in a great deal of talent as the company sources its upcoming films. So far, Netflix has already signed up to produce four Adam Sandler films as well as a

sequel and Amazon is promising around a dozen original films in the coming year. Many expect that this unconventional production method will create award winning content that mirrors the success the firms have had in the TV space.

It remains to be seen whether or not Netflix will receive a nod from the Academy, but many analysts say the quality of the movies that companies like Amazon and Netflix make may not be the most important metric. For both firms, bringing in and retaining subscribers is a vital part of their business. At the moment, it is unclear whether or not their original programming is making large enough of an impact to justify the costs of creating new shows, but spending on movie making is a much larger gamble.

that both firms would be better off using their movie budgets to make new TV series, which can be changed depending on viewers' reactions. Movies, once made, are either a hit or a flop, and making them is a larger financial gamble.