Netflix to produce sequel to 'Crouching Tiger, Hidden Dragon'

The online video distribution company -- Netflix -- has turned the TV industry upside down by producing original shows. And now they're trying their hand at original movies. The sequel to the acclaimed Chinese martial arts film "Crouching Tiger, Hidden Dragon" is heading to a small screen near you.

It used to be that coming attractions first came to a box office then trickled down to pay-per-view, dvd and cable-TV. But times and consumer habits are rapidly changing and Netflix has a lot to do with it.

"That's mainly where I watch TV and where a lot of my friends watch television," said Dorion Wardlaw, a Netflix user.

Now the company is re-writing the Hollywood script on how new movies are released.

This week Netflix and the Weinstein Company announced they're partnering to jointly produce the sequel to "Crouching Tiger, Hidden Dragon." But it's not who's producing it that's causing the controversy - it's how they're distributing it.

By essentially sidestepping the normal theatrical release and instead premiering the movie sequel next August 28, 2015 on Netflix' online streaming services while simultaneously showing it in select Imax theaters.

"Well, the theaters want you to come out to the theater, and the worry is nobody is going to come to a movie theater when you can sit at home, watch it on your TV at Netflix," said Lisa Richwine, from Reuters.

Some consumers say the concern that streaming services will hurt movie-going audiences is unwarranted.

"I think certain movies lend themselves to theaters, but others don't. I mean, I'm fine with watching them on a computer, certain movies, but big blockbusters, action movies, I prefer to see on a theatre, on a big screen," said Brandon Johnson, a Netflix subscriber.

"No, I mean, I don't think so. My question is, would they charge to watch the movie on Netflix or would it come with your membership Because if it came with your membership, I mean, I wouldn't spend $30 on a movie," said Wordlaw.

That's the biggest fear for U-S movie-plexes struggling with attendance declines. Netflix just announced a deal to exclusively produce and stream four new Adam Sandler feature films.

"You will definitely see more movies that are released through video on demand or Netflix (show vids: of Dorian surfing at home) because people are getting used to having so many options at home," Richwine said.

"That's one big area of growth streaming, so I think streaming is the future and it makes a lot of sense," said Dr. Stanley Rosen, professor from University of Southern California.