Netflix’ billion dollar investment in original content was paid off by four Academy Award wins, Sunday night. The relatively new producer of original content was tied with other Hollywood studios in the number of Oscar’s win this year.
Netflix’s original movie ‘Roma,’ written and directed by Alfonso Cuaron, bagged three Oscars trophies including Best Foreign Film, Best Cinematography, and Best Director.
‘Period. End Of Silence’ a Netflix original documentary also won Best Documentary Short.
The wins earned by Netflix in last night’s Academy Awards tied with Hollywood giants like Fox, Disney, and Universal Studios.
The Oscars success of the streaming service provider has propelled its stock to rise to more than one recent in early Monday’s trading.
However, experts warn that winning an Oscar does not guarantee financial returns. According to a report by Fox Business, since the campaign for an Oscar has become more costly, studios now have lesser chances of profits.
“That money goes to full-page spreads in trade magazines, billboard ads, Q&A screenings, private jet flights for filmmakers and actors, and elaborate coffee table books mailed out to voters and new competition for journalists,” they wrote.
“One thing not helping the industry is the shrinking audience for the Oscar telecast. The show drew a record low of 26.5 million viewers last year, down nearly 20 percent from 2017, according to Nielsen. Ratings were 40 percent lower than in 2014.” they added.
According to The Times, the benefits from an Oscar win does not come in measurable forms. They come in intangible things like maintaining a good relationship with producers, directors, and actor which is equally important in an emerging stakeholder like Netflix and Amazon.
Netflix has poured in billions of dollars in original contents to leverage exclusivity and lure in new subscribers. In 2018, the company spent more than $12 billion on original material and was expected to make it to $15 million in 2019. According to a report by The Wrap, the company spent approximately $20 million to $30 million on campaigning Roma for the Oscars.
Nonetheless, the success of Netflix’s content in this year’s Academy Awards is a sign that the streaming service giant is becoming a significant player in Hollywood. Last month, Netflix was the first streaming service to join the Motion Picture Association of America. /apr