Netflix breaks new ground with Roma Oscars nomination
Streaming video on demand (SVOD) market leader Netflix has broken new ground by receiving a “Best Picture” nomination for its Spanish family drama Roma. The company had previously pegged Roma as a potential critical success, giving it a cinematic release and promoting it heavily. This is a big break for Netflix: it marks the company’s first nomination for the Oscars’ most prestigious category.
Even after post-results pull-back, Netflix’s share price has risen by 27% so far this year
Source: Yahoo Finance
Investors might wonder why a company like Netflix, whose business model has disrupted the traditional cinematic model, would even care about something like the Oscars. But the answer to that question is simple enough. Netflix’s success is predicated on its ability to provide the best content around. To do that, it needs the most talented writers, directors, and actors. But these arty types care a great deal about critical success: there’s only so much you can buy – if a top director thinks working with you will hold him or her back artistically, he probably won’t take the bait. Success at the Oscars would make Netflix an even more attractive proposition for top cinematic talent.
It’s not the first time an SVOD player has received a nod at the Oscars. Competitor Amazon earned a “best picture” nomination for its 2017 hit Manchester by the Sea, but it didn’t win. Whatever happens this year, it’s clear that streaming content is encroaching further and further into spaces previously reserved for more traditional types of content provider. The Oscars will be awarded February 24 – Netflix fans and investors will be keeping a close eye on the results.
Dominion holds both Netflix and Amazon in its Global Trends Ecommerce Fund.
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