While the 91st Academy Awards was the biggest event of the year in Hollywood, it was an even bigger night for Netflix (NASDAQ: NFLX).
Sunday night, the streaming giant bound Walt Disney, Twenty first century, and ComcastUniversal has won the highest number of Academy Awards this year, winning four statues. More importantly, these victories were ranked in several high-profile categories, after years of Netflix that had only achieved rewards for their documentaries.
That followed a performance similar to the Golden Globes last month, when Netflix had five wins, more than any other network, studio or streaming service.
But winning an Oscar goes far beyond simply boasting: these gains will help Netflix attract the best talent and make itself better known to current and future subscribers.
A great night
Alfonso Cuaron Roma, a director's childhood retrospective published by Netflix, has won three of the Academy's top awards: Best Director, Best Cinematography and Best Foreign Language Film. Cuaron is the first person in the history of the Oscars to win the award for Best Cinematography for a film that they have also achieved.
Netflix also added to its documentary glory, winning the award for best documentary (short film) for Period. End of sentence.
The halo effect
A well-known phenomenon occurs in Hollywood when movies are nominated for the best picture. While this varies from year to year, nominees generally see a resurgence of interest at the box office, as the Oscar Oscar arouses renewed interest from moviegoers. In recent years, ticket sales have risen 20% on average after the announcement of appointments, according to Mojo Box Office.
While some of Netflix's most prestigious films have been shown in a handful of theaters in order to qualify for an Academy Award, the company does not really care about ticket sales. Netflix derives almost all of its revenues from subscribers. The company is therefore interested in making itself known for other reasons.
Quality, not just quantity
The prestigious Oscars Awards from Netflix send a message to current and potential subscribers about the quality of the great movies created by the Netflix movie studio. The company has long been known for the superiority of its television series. Last year, Netflix went into history by tying AT & THBO and winning 23 Emmy Awards – a part of the star HBO had kept for itself over the past 16 years. The Oscar won the signal that Netflix now excels in film production, as well as in television series.
It also helps attract the best filmmakers to Hollywood by letting them know that creating movies exclusively for Netflix will not stop them from receiving major rewards. Roma was the poster for this argument, winning a host of awards this season. In addition to his three Oscars, Roma has also won two Golden Globes – Best Director and Best Foreign Language Film – and four BAFTA Awards from the British Academy of Television and Film Arts, including Best Film, Best Cinematography and Best Director .
The big push
It was part of a larger Netflix effort to increase his chances of winning an Oscar this year. The streaming service broke with its long-standing tradition, giving several of its high-profile films an exclusive theatrical window before their first appearance on the Netflix streaming platform. The company has long supported the release day and date – when a movie is available to subscribers the same day of its theatrical release.
Roma spent three weeks indoors before being available to Netflix customers. Similar treatment has been applied to other prestigious projects, including the Western anthology of the Coen brothers. The Scruggs Buster Ballad, Andy Serkis & # 39; Mowgli: the legend of the jungleand Susanne Bier-helmed Bird box.
It is estimated that Netflix spent between $ 25 and $ 30 million for RomaThe Oscar campaign – nearly twice the $ 15 million she paid for the film itself – is aiming to get her first Oscar.
Disturb existing paradigms
After conquering linear TV, Netflix intends to break the current Hollywood paradigm. His success at the Oscars will eventually attract increased interest from potential subscribers, especially when they will not be able to see the latest Oscar-winning film.
With 139 million subscribers worldwide and more affiliations each day, such wins will give a new reason for the holdouts to spend $ 8 to $ 16 a month on a Netflix subscription.
Danny Vena owns shares of Netflix and DIS and has the following options: Long January 2021 calls $ 85 on DIS. Motley Fool owns shares and recommends Netflix and DIS. The Motley Fool recommends CMCSA. Motley Fool has a disclosure policy.