Netflix Buys HBO Max: Mega-Deal on the Horizon
The Divergent Paths of music and Film distribution
Table of Contents
Ancient differences in Distribution Strategies
The music and film industries have fundamentally different approaches to distribution, stemming from their origins. The music industry, from the advent of vinyl records through cassettes and CDs, prioritized rapid and widespread distribution to combat piracy, largely avoiding regional restrictions. radio broadcasting,for example,operates with a de facto “worldwide” license,allowing listeners to access stations globally via the internet.
This historical approach facilitated the creation of platforms like Spotify, as the music industry’s structure was already consolidated around a relatively small number of major labels - approximately five globally – that didn’t operate their own competing platforms.
Film and television: A History of Controlled Access
In contrast,the film and television industry has consistently sought to control when,where,and how content is viewed. This began with staggered cinema premieres in different countries in the 1950s and continued with technical divisions like PAL and NTSC video standards,and regional coding on DVDs.
The rise of streaming services has continued this trend, initially through IP address-based restrictions and now, increasingly, by the country of origin of the payment method.The landscape is fragmented, with each film studio and television network launching its own streaming service (examples include Netflix and Disney+), often retaining exclusive rights to their content.
Content Rights and Geoblocking Challenges
The complexity increases when production companies like Banijay are involved.In these cases, rights frequently enough remain with the production company, and broadcasters purchase rights for specific territories, implementing geoblocking to prevent access from other regions. This practice is notably prevalent in sports broadcasting, where exclusive territorial rights are common.
The current fragmented system makes the prospect of a single entity acquiring all content from major players like Netflix,Disney,Banijay,and various television networks – and translating it into all languages - highly improbable. The unwillingness of these companies to sell rights, combined with the enormous cost of translation, would likely result in a prohibitively expensive subscription price.