The entertainment industry is facing a new challenge, as it tries to compete with Netflix in the streaming market.
According to a new report from the Hollywood Reporter, the Hollywood studio system will require new subscription revenue streams in the future, as studios attempt to attract subscribers who prefer to watch on their smartphones.
According to the report, “The studios will have to offer subscribers a bundle of streaming content in order to compete, and the content must be free to play.”
The new requirement for a subscription, however, does not apply to new films, as that is already available for free on the streaming service.
The Hollywood Reporter said that the studios will need to offer an additional revenue stream in the near future, which would likely include the ability to offer subscriptions at lower prices than Netflix’s offerings.
Netflix currently offers subscribers a wide array of streaming offerings, from original series like “House of Cards” to films like “The Interview,” “The Dark Knight Rises” and “Avengers: Age of Ultron.”
The company has recently launched its own subscription service, dubbed Netflix Prime, which is currently available in all 50 states.
Netflix has already announced plans to launch its own streaming service in the coming months, which includes a new movie series “American Gods” and the upcoming comedy “Bubble” on July 1.
The service has also been offering a free 30-day trial to some subscribers, though it’s unclear if those subscribers will have access to the full service in addition to the trial.