The phrase references a theoretical shift in Netflix’s strategic path. It describes a possible transformation of the corporate from primarily a distributor of licensed content material to a creator and proprietor of mental property, thereby reaching larger management over its future and profitability. One may envision the corporate more and more investing in unique productions to compete extra successfully with conventional studios and rising streaming platforms.
This transformation is strategically important for a number of causes. Higher possession of content material reduces reliance on exterior licensing agreements, that are topic to renegotiation and will be expensive. Proudly owning mental property permits for long-term income era via numerous channels, together with licensing, merchandising, and spin-offs. Traditionally, the corporate adopted a path of aggregation, however rising competitors pushes for differentiation via proprietary content material.