[Asia Economy Reporter Kwon Jae-hee] Hollywood maestro director Steven Spielberg and the world's largest video streaming service (OTT) company Netflix have signed a film production contract.
According to the Wall Street Journal (WSJ) on the 21st (local time), Amblin Partners, a film production and distribution company founded by director Spielberg, will produce Netflix-exclusive films together with Netflix. Specific contract terms such as production period or amount were not disclosed.
Director Spielberg stated in a press release, "We have gained an amazing opportunity to tell new stories together and reach audiences in new ways," adding, "This new path for our films gives me a tremendous personal sense of accomplishment."
Netflix also expressed anticipation for the collaboration with Spielberg, a director representing Hollywood's film industry.
Ted Sarandos, co-CEO of Netflix, said, "We want to work with Amblin as soon as possible," and added, "It is an honor to be part of the history of films made by director Spielberg."
Netflix plans to further solidify its position as the number one OTT platform through collaboration with Spielberg, a guaranteed box office hitmaker. Netflix, which has 280 million subscribers worldwide, is the leader in the streaming industry, but competition in the OTT sector has intensified recently with the rapid increase of latecomers such as Disney Plus, Amazon Prime, and HBO Max.
In particular, latecomers in the OTT industry are expanding their scale through aggressive mergers and acquisitions (M&A), aiming to surpass Netflix's dominance.
Unlike competitors growing through M&A, Netflix has strengthened its competitiveness by recruiting creative producers and enhancing its exclusive content, 'Netflix Originals.'
WSJ analyzed the collaboration between Netflix and director Spielberg, stating, "It will further strengthen Netflix's film production pipeline," and predicted that "Netflix is expected to produce about 60 new films, including those by director Spielberg, in 2021."
The industry is keenly watching the meeting between Netflix, the number one OTT company, and Spielberg, a guaranteed box office hitmaker. Until now, Amblin had partnered with Hollywood giant Universal Pictures to produce Academy Award-winning Best Picture 'Green Book' and Golden Globe Best Picture '1917,' but this contract officially declares the production of streaming-exclusive films.
Although Amblin plans to produce films for Netflix, WSJ reported that this does not mean these films will not be released in theaters. Netflix has shown a willingness to bring its content to the screen to attract more producers. Especially, to be eligible for Academy Award nominations, films must be screened in Los Angeles theaters for at least one week. However, this condition was exceptionally waived last year due to the COVID-19 pandemic.
Above all, director Spielberg has openly expressed strong opposition to Netflix films, making the industry even more surprised by this partnership.
In 2019, Spielberg argued, "Streaming services and theatrical films are different," and insisted that "Netflix should be excluded from the Academy Awards."
He also openly criticized Netflix films' nominations, saying, "Netflix should not win Oscars."
However, in an interview with The New York Times (NYT) the same year, he took a step back, saying, "Regardless of the big screen or small screen, what really matters to me is the story, and everyone should have access to great stories."
CNN reported, "Spielberg is one of the most beloved and successful directors in history and a longtime guardian of Hollywood," adding, "The partnership between Spielberg and Netflix is a significant achievement for streaming services and a sign of Hollywood's changing dynamics."
Film industry outlet Deadline evaluated this contract as "once again showing that the boundary between streaming films led by Netflix and theatrical films is further breaking down."
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