📘 Case Study
“Streaming Struggles: Monetization Dilemma at IndieFlicks”
Company Background
IndieFlicks is a streaming platform launched in 2020 to showcase independent films and documentaries from around the world. Its mission is to give visibility to non-mainstream filmmakers and offer audiences curated, high-quality storytelling beyond Hollywood.
By 2024, IndieFlicks has:
- A global catalog of 6,500 titles from 52 countries
- 2.3 million registered users
- A loyal fanbase among cinephiles, students, and film festivals
- Partnerships with 14 international film schools and cultural institutions
But despite a growing reputation, IndieFlicks has struggled to generate sustainable revenue.
Business Model So Far
- Freemium Model: Basic access to 2 films/month for free users
- Premium Plan: $7.99/month for unlimited streaming
- Festival Mode: Time-limited screenings of rare festival content
- Revenue (2024): $4.8 million
- Net Loss: $2.2 million
Customer feedback has been excellent on content quality and discovery experience—but conversion from free to paid remains under 8%.
Competitive Landscape
- Dominant global players: Netflix, Amazon Prime, Disney+
- Niche players: Mubi, Criterion Channel
- Social platforms: TikTok, YouTube, and Instagram competing for attention and screen time
- Gen Z audiences show growing preference for short-form, mobile-native content
Strategic Options for Monetization
Option A: Tiered Membership + Gifting
Introduce a three-tier model:
- Free (limited content)
- Premium ($7.99)
- Supporter ($14.99) with exclusive filmmaker Q&As, virtual premieres, and festival access
Enable “Gift a Film” and patron-style contributions.
Option B: Ads on Free Tier
Run non-intrusive ads (trailers, interviews, sponsor clips) before select content. Partner with cultural brands and film schools for ad inventory.
Option C: Educational Licensing
Sell institutional subscriptions to universities, film schools, and libraries. Bundle filmmaker interviews and classroom content.
Option D: Creator Monetization
Enable indie filmmakers to sell behind-the-scenes, director commentaries, or bonus footage directly to fans (IndieFlicks takes a cut).
CEO’s Dilemma
Founder and CEO Amara Dey must now decide:
- How to monetize more effectively without losing the soul of the platform
- Whether to shift focus toward institutions or keep consumer-centric
- How to retain indie credibility in a platform economy increasingly driven by scale, data, and speed
Snapshot – IndieFlicks (2024)
| Metric | Value |
| Registered Users | 2.3 million |
| Monthly Active Users | 880,000 |
| Premium Subscribers | 178,000 (7.7%) |
| Avg. Watch Time (Premium) | 5.4 hrs/month |
| Churn Rate (Premium) | 11.2% |
| Gross Margin | 38% |
| Staff | 42 |
| Marketing Budget (2024) | $460,000 |
🔍 Student Discussion Questions
Business Model & Monetization
- Which options (A–D) should IndieFlicks prioritize for sustainable revenue without betraying its mission?
- How can IndieFlicks improve freemium-to-premium conversion?
- Is advertising consistent with the IndieFlicks brand? What types of ads (if any) would align?
Product & Audience Strategy
- Should IndieFlicks develop short-form content to appeal to younger viewers? Why or why not?
- How can the platform better serve global creators while growing audience engagement?
Growth & Scale
- Is the consumer model scalable in the long run, or should IndieFlicks pivot to B2B (e.g., education, licensing)?
- How can IndieFlicks compete for screen time in a saturated attention economy?
Culture, Identity & Impact
- How should Amara communicate changes (ads, pricing, features) to the loyal indie community?
- What role can IndieFlicks play in preserving artistic diversity in the age of algorithmic entertainment?
- What does success look like for IndieFlicks in 2030?