Search:  

 
 
   All ForumsHot TopicsGallery






how-to block ads


 
Forums » Netflix: $.05 to Deliver Movie Stream?
Search Topic:
view: topics flat text 
Post a:

Comments on news posted 2009-03-23 08:42:29: A morning hat tip to [user=Matt], who directs our attention to this interesting bit of analysis, where a blogger crunches the numbers on Netflix's successful broadband streaming video model. ..

page: 1 · 2 · 3 · 4 · 5 · 6
AuthorAll Replies


Eat Me

join:2002-09-25
Sussex, NJ
·PenTeleData
·Future Nine Corpor..
·VOIPo
·Vonage

Here's why they can get away with it

The HD selection right now is very limited, and I believe it's that way on purpose. So people will not be streaming that many HD movies. SD has a wider selection, but I've watched a few movies in SD and they border on unwatchable. I would rather just wait for the Blu-Ray in the mail.

Most people also have caps so they're not going to be streaming 24x7.

This whole streaming thing is simply a way for Netflix to boost subscriber numbers for its regular DVD service. Some people don't even put DVDs in their queue making it even more profitable for netflix.

I was a netflix sub from 2001-2004. I stopped it because I didn't have that much time to watch movies and 3 movies was just too much. I resubscribed when TiVo got it and even got blu-ray access. Without the streaming option I would have probably not gone back to Netflix in such a hurry.


Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
·Comcast

Not too happy..

I have the Roku.

When I first got it, it was great. There were so many movies I wanted to watch and didn't want to wait for the DVD.

Now, it's boring. They keep releasing old movies. It'd be nice if they released more newer movies. I check at least 3 times a week to see what new movies were released for instant viewing and it's all stuff that I've already seen, or has been out for 10+ years.
--
C | Y | R

Joe12345678

join:2003-07-22
Des Plaines, IL
What does it cost for the Direct TV VOD downloads in data co

What does it cost for the Direct TV VOD downloads in data cost?

do they get any real good deals as they are teamed up with ATT now?


Matt
Take me down to the paradise city
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

reply to Eat Me
Re: Here's why they can get away with it

said by Eat Me See Profile :

SD has a wider selection, but I've watched a few movies in SD and they border on unwatchable. I would rather just wait for the Blu-Ray in the mail.
Your experience with SD is not the norm. SD quality is very good, DVD like for me and most reviewers. The quality will auto-adjust itself down to horrible based on your connection however ...

Regardless, what the article illustrates is that as bandwidth consumption goes up, the cost per bit goes down. Not the other way around as most people would have you believe.


Matt
Take me down to the paradise city
Premium
join:2003-07-20
Jamestown, NC
reply to Rob
Re: Not too happy..

Rob, that's the stuff that is easy to license. This whole "streaming" thing is new for a lot of content producers, so they have to warm up to the idea. That's why there isn't any recent HD content.


Neyland

join:2003-02-04
USA

reply to Matt
Re: Here's why they can get away with it

I agree all the non HD content we've watched has been DVD quality. We've actually been very pleased with the service, if only the selection were a bit better.

But, considering it's free on my TIVO and the Netflix service costs about the same as a premium channel like HBO, I call it a win.


Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
·Comcast

reply to Matt
Re: Not too happy..

said by Matt See Profile :

Rob, that's the stuff that is easy to license. This whole "streaming" thing is new for a lot of content producers, so they have to warm up to the idea. That's why there isn't any recent HD content.
I know. I'm not even concerned about HD. But I'm just not happy much anymore.


Neyland

join:2003-02-04
USA
reply to Rob
We bring the DVDs in that are newer releases. Two day turn around is pretty good IMO.

We use the streaming for 'filler' and it's great for kids stuff.


handydave

join:2000-12-14
Totowa, NJ
Rates

Still cheaper than US Postal Rate


FLengineer
Premium
join:2007-06-26
Leesburg, FL
I want Level 3 as an ISP

Level 3 is charging $0.03 per GB while Comcast and Time Warner feels $1 per GB overage charges is acceptable.

NetFlix ------ Level 3 ------- Comcast ------- Me
Send 2GB ----- $0.06 ------- $2.00 ------- Recieve 2GB


BF69

join:2004-07-28
Camden, TN

reply to Eat Me
Re: Here's why they can get away with it

said by Eat Me See Profile :

The HD selection right now is very limited, and I believe it's that way on purpose. So people will not be streaming that many HD movies. SD has a wider selection, but I've watched a few movies in SD and they border on unwatchable. I would rather just wait for the Blu-Ray in the mail.

Most people also have caps so they're not going to be streaming 24x7.

This whole streaming thing is simply a way for Netflix to boost subscriber numbers for its regular DVD service. Some people don't even put DVDs in their queue making it even more profitable for netflix.

I was a netflix sub from 2001-2004. I stopped it because I didn't have that much time to watch movies and 3 movies was just too much. I resubscribed when TiVo got it and even got blu-ray access. Without the streaming option I would have probably not gone back to Netflix in such a hurry.
Get away with what? The streaming is an ADDED feature. It's not like you pay for it separately. Also as the OP said this doesn't include licensing fees.

The bigger question is that if netflix only pays 3¢ per GB how come ISPs want to charge $1 or more per GB overage? And the 250 GB cap that Charter and Comcast have only costs them $7.50 are they telling me it's cost them nearly $60 to provide everything else associated with an internet connection? Hardly. One also has to wonder how mobile companies can get away with $256 and $503 per GB overage fees.


Matt
Take me down to the paradise city
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

reply to Neyland
said by Neyland See Profile :

I agree all the non HD content we've watched has been DVD quality. We've actually been very pleased with the service, if only the selection were a bit better.

But, considering it's free on my TIVO and the Netflix service costs about the same as a premium channel like HBO, I call it a win.
You sound like me. I still have all the newest stuff come in on DVD/Blu-Ray, but love firing it up to watch older content. I read a review one time that said something along the lines of it being perfect for "Curling up on the couch for a rainy weekend of movie watching." I'd agree that is a great use for it. Especially since it's free!


battleop

join:2005-09-28
00000
Why do these stories make the front page?

It's nothing but assumptions. There are no facts in this story. Just the ramblings of another self appointed expert.

me1212

join:2008-11-20
Pleasant Hill, MO
reply to FLengineer
Re: I want Level 3 as an ISP

I agree! I would like them too. But I am happy with what I got.


Matt
Take me down to the paradise city
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

reply to battleop
Re: Why do these stories make the front page?

said by battleop See Profile :

It's nothing but assumptions. There are no facts in this story. Just the ramblings of another self appointed expert.
There is a difference in an assumption from a knowledgeable industry insider who writes about online video delivery for a living and say, a guy posting in the DSLR forums. He's even written articles about the difference in Akamai's pricing structure so I'd say he has a bit of inside information.

Regardless, it's not hard to find out pricing. Call up Akamai or Limelight, tell them how much you want to transfer per month, and they'll tell you how much it will cost. From my past discussions with them (they weren't the right fit for us however) his pricing is right on.


cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

reply to FLengineer
Re: I want Level 3 as an ISP

said by FLengineer See Profile :

Level 3 is charging $0.03 per GB while Comcast and Time Warner feels $1 per GB overage charges is acceptable.
I was going to make a comment regarding sending several GB only costs a few cents but sending a 140-character text message costs $.25. However you also have to factor in what exactly they are providing.

Level 3 has their own backbones, but if you just look at the total number of feet in their cable plant, cable and telcos have several orders of magnitude more cabling that they have to maintain. That translates into more infrastructure costs, more labor costs (both wages and benefits), more administrative costs to maintain that infrastructure and labor force, etc. While in the end both provide essentially the same thing, it's not exactly an apples to apples comparison of costs.


DataDoc
My avatar looks like me, if I was 2D.
Premium
join:2000-05-14
Greenville, NC
·Suddenlink

reply to BF69
Re: Here's why they can get away with it

said by BF69 See Profile :

...The bigger question is that if netflix only pays 3¢ per GB how come ISPs want to charge $1 or more per GB overage? And the 250 GB cap that Charter and Comcast have only costs them $7.50 are they telling me it's cost them nearly $60 to provide everything else associated with an internet connection? Hardly. ...
Maybe they'd like to pay their employees, rent and other "overhead", and maybe even show a profit for their stockholders.


Eat Me

join:2002-09-25
Sussex, NJ
·PenTeleData
·Future Nine Corpor..
·VOIPo
·Vonage

reply to Matt
said by Matt See Profile :

said by Eat Me See Profile :

SD has a wider selection, but I've watched a few movies in SD and they border on unwatchable. I would rather just wait for the Blu-Ray in the mail.
Your experience with SD is not the norm. SD quality is very good, DVD like for me and most reviewers. The quality will auto-adjust itself down to horrible based on your connection however ...

Regardless, what the article illustrates is that as bandwidth consumption goes up, the cost per bit goes down. Not the other way around as most people would have you believe.
Just out of curiousity, what kind of TV are you viewing it on? I'm using a 56" DLP. DVDs are noticeably better. It's not bandwidth related because I get all of the SD quality bars and I have a 30 meg connection.

It could be that:

I'm using a 56" HDTV

I'm using an upconverting DVD player for DVDs (Sony)

Or it could be that I haven't watched a SD movie in a while. I know they've had some really bad encodes in the past.


BF69

join:2004-07-28
Camden, TN

reply to battleop
Re: Why do these stories make the front page?

said by battleop See Profile :

It's nothing but assumptions. There are no facts in this story. Just the ramblings of another self appointed expert.
And YOU have proof of this? Or are YOU making ASSumptions YOURSELF?


Matt
Take me down to the paradise city
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

reply to DataDoc
Re: Here's why they can get away with it

said by DataDoc See Profile :

said by BF69 See Profile :

...The bigger question is that if netflix only pays 3¢ per GB how come ISPs want to charge $1 or more per GB overage? And the 250 GB cap that Charter and Comcast have only costs them $7.50 are they telling me it's cost them nearly $60 to provide everything else associated with an internet connection? Hardly. ...
Maybe they'd like to pay their employees, rent and other "overhead", and maybe even show a profit for their stockholders.
Have you seen the price of NFLX lately?
Forums » Netflix: $.05 to Deliver Movie Stream?page: 1 · 2 · 3 · 4 · 5 · 6


Wednesday, 09-Dec 16:06:28 Terms of Use | Privacy Policy | Hosting by www.nac.net - DSL,Hosting & Co-lo | feedback | contact
over 10 years online! © 1999-2009 dslreports.com.
page compression OFF