Paramount Pictures has signed a multi-picture deal to provide original features for Netflix. During a Viacom fourth-quarter earnings call, Paramount boss Jim Gianopulos announced:
“Our priority is to expand our role as a major global content supplier. As such, we’re exploring various new revenue streams in addition to our traditional theatrical releases as a producer of first-run films and television for other media platforms.”
Paramount and Netflix struck gold this past February, with the release of ‘The Cloverfield Paradox’. Originally planned for a theatrical release, a deal was struck (reportedly for $50 million, paid on Netflix’s part) to stream the movie, which was advertised on the Super Bowl and became available immediately after the game. While the movie was reportedly heavily streamed, it was not well-received by critics. If Paramount had gone with its original plan to release it in theaters, they would have spent millions more on promotion and advertising, and probably would have lost a lot more money on ‘The Cloverfield Paradox’.
On the TV front, Paramount has delivered the hits ’13 Reasons Why’ and ‘Maniac’ to Netflix.
Specifics were not given, but according to Gianopulos this deal between Paramount and Netflix is for “a small number of titles” to be released “when and where it makes sense.”
He went on to add that Paramount has way too much product in development to squeeze onto its release schedule and that this gives the studio another outlet for its product.
“We’ve had a long relationship with Netflix. On the licensing side, we’ve known the senior management team for many years. This represents an incremental revenue stream that we’re excited about. We have more capacity for great production than the theatrical system can accommodate. While [theatrical] remains our core business, we’re very happy to work with the likes of Netflix, Amazon and others as partners and new customers.
“While they have increased their internal capabilities, they are looking for great properties and we have great IP, great development and great creative relationships and potential to develop for them.
“In some ways, it’s just an evolution from the days when studios were making MOWs [movies of the week] for the networks. The difference, of course, is that the quality of some of these films is much higher, making these relationships even more valuable. And it plays to the strength of a large, well-established studio like Paramount.”
Source: Deadline
