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Comments on news posted 2011-07-11 18:27:07: With the recent news that Netflix now controls more than 61% of the digital video distribution market, we noted that it seemed likely that there would be a more concerted effort by both ISPs (with one foot in the traditional TV business) and broadcas.. ..

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digiblur
Premium
join:2002-06-03
Louisiana

Verizon icon?

What does this have to do with Verizon?



Mert

@ut.us

no, Netflix icon



MemphisPCGuy
Taking Care Business
Premium
join:2004-05-09
Memphis, TN

As long the price stays low...

... it's going to take the loss of quite a bit to make it not worth it, while allowng me to have a library on tap that doesn't require local storage and all that entails.

Isn't there some form of "fair market value" placed on programming? Can Hollywood single out Netflix to pay higher prices than other outlets and not be dragged into court ?
--
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»www.memphispcguy.com


FactChecker
Premium
join:2008-06-03

1 recommendation

How to take billions and turn them into millions

Hard for the content providers to take a billion dollar revenue stream they have today with existing TV distribution and turn it into a million dollar revenue stream business model that Netflix expects to be entitled to.

Is this really driving the costs up or rationalizing the business model that balances the ROI?

Do content providers really care who delivers it as long as they get roughly the same revenue stream?



zalternate

join:2007-02-22
freedom land

still a bargain

Even at $30 a month, Netflix would still be cheap. And of course, the users will cut their final strand of cable TV in order to save a few bucks.

Has no one in corporate(ex; copyright mafia) learned that removing choice and jacking the prices way up, will make people drop your sorry ass in an instant to be able to afford food.
"On demand"(low cost streaming) is great.
On a "set schedule"(cable tv) ,with a million useless channels, is ignored and no longer subscribed too. DVR it? Except when a glitch(or the box enforces a certain delete date) erases all that content.
--
Prisoners are treated better than supposedly free North Americans.



JasonOD

@comcast.net

Time for netflix to put on some big-boy pants....

And pay back the true enablers of their success, the content owners. It's astonishing that they've come as far as they have since their entire business model is built upon entities that don't like them.



28619103
Premium
join:2009-03-01
21435
reply to zalternate

Re: still a bargain

said by zalternate:

Even at $30 a month, Netflix would still be cheap. And of course, the users will cut their final strand of cable TV in order to save a few bucks.

It would be great for Netflix too if they get the network for free and the content for below all traditional TV players.


Edrick
I aspire to tell the story of a lifetime
Premium
join:2004-09-11
Woburn, MA

2 recommendations

Time to start

Sending the Execs nasty letters at the production studios telling them how freaking retarded they are and informing them if they screw with things like that we'll just go back to pirating.



Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3
reply to JasonOD

Re: Time for netflix to put on some big-boy pants....

They do pay them back. The problem is that they want to impose a dated & broken means of business rather than actually change with the times. These studios fear change, and this is just a move to price the service out of business.



Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3
reply to FactChecker

Re: How to take billions and turn them into millions

said by FactChecker:

Do content providers really care who delivers it as long as they get roughly the same revenue stream?

Why go with the same old revenue stream when you can theoretically get 10x more of it? And simultaneously kill the online video business, but still...it's a shot at more money!

pabster

join:2001-12-09
Waterloo, IA
reply to JasonOD

Re: Time for netflix to put on some big-boy pants....

Oh please. The content owners are nothing but whores looking for the highest bidder. They'll sell to whoever has the cash while keeping their revenue stream similar. The idea that any of this crap is 'premium' content is an idea that has been perpetuated over and over but people aren't falling for it any more. $7.99 a month I'll keep it around for giggles but much more and I'll drop the whole shebang as 99.99% isn't worth a penny.


axus

join:2001-06-18
Washington, DC

1 recommendation

Not as much leverage when you suddenly have competition

The only reason studios can raise their prices 10-fold is they don't have any competition. I'm not sure what can be done about that. I think Netflix has done more to decrease video piracy than anything else.



FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5
reply to FactChecker

Re: How to take billions and turn them into millions

said by FactChecker:

Hard for the content providers to take a billion dollar revenue stream they have today with existing TV distribution and turn it into a million dollar revenue stream business model that Netflix expects to be entitled to.

Is this really driving the costs up or rationalizing the business model that balances the ROI?

Do content providers really care who delivers it as long as they get roughly the same revenue stream?

Content providers won't sit idly by and watch Netflix take business away from the very well paying cable & telco companies and sell their content at a discount price. As cable and telco lose customers and end up paying less for content, the content companies will want more from Netflix, Google, Apple, etc. to make up the shortfall. Those who think Netflix won't be greatly raising prices for bypassing traditional outlets are in for a rude shock.
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spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet
reply to Thaler

Re: Time for netflix to put on some big-boy pants....

said by Thaler:

They do pay them back. The problem is that they want to impose a dated & broken and highly DRM'ed means of business

To add to your fine post:
--
The weekend is here, grab a can of beer!


HB
Maru Maru Mori Mori
Premium
join:2011-06-21
00000

Studios should be careful what they ask for

For many people, Netflix is getting to be an essential service like gasoline and they will cut other entertainment to keep it. The studios will just end up swapping dollars if Netflix prices go up. People will simply drop HBO, Starz, Skinemax or other CATV tiers or drop those services all together.

Or Netflix will accelerate purchase or production of their own programming, making them Netflix exclusives.



JasonOD

@comcast.net
reply to Thaler

Re: Time for netflix to put on some big-boy pants....

Charging 10 cents on the dollar because it's 'internet delivered' content that netflix can afford to push ad-free can't be expected to continue.



aciddrink

join:2000-08-26

Piracy

Well, with the increasing restrictions being set forth against Netflix and similar services, the studios should expect an equivalent increase in piracy. I for one currently obtain most of my video materials legally through Netflix. However I will steer back towards Piracy if forced to by A: exponentially increasing prices to/from Netflix or B: upcoming lack of content provided to/from Netflix.



cyber

@verizon.net

netflix need to invest in ther own isp

netflix needs to buyout the isp's



Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3
reply to JasonOD

Re: Time for netflix to put on some big-boy pants....

said by JasonOD :

Charging 10 cents on the dollar because it's 'internet delivered' content that netflix can afford to push ad-free can't be expected to continue.

So increasing these costs to a dollar per dollar earned (the 10x these studios are proposing) would be a sustainable business model?

Put it this way, without Netflix, these studios would be looking at a potential $0 from their online monthly rentals. Hell, if they truly got their way, all online video streaming would be stopped, and everyone would only have the choice of $20 a DVD, $30 a Bluray off store shelves.


Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3
reply to FFH

Re: How to take billions and turn them into millions

said by FFH:

Those who think Netflix won't be greatly raising prices for bypassing traditional outlets are in for a rude shock.

And so to it would fall the online video market. No offense, but Netflix isn't exactly a super-premium service. You *might* have the content you want to watch on there, but at the low price point, it's worth keeping around for entertainment.

Start bumping the monthly price up to $20-30 for a half-ass online video delivery attempt and just watch subscription numbers plummet.


ZeddicusToo

@verizon.net

One (at least) problem with that...

The studios have nothing that's essential to anyone's existence. And MTV has been irrelevant for decades. (I want my MTV... to just go away and die already.) Pay more? I'm already thinking about never again buying anything from "Hollywood" and their ilk at the current prices. I'm currently trying Netflix for 6 months or so--a good service I suppose. But pay more than $10/mo. for anything I've already seen a bunch of times? I don't think so. Even if they got a lot more new stuff, well, that might make them worth as much as $15/mo... to someone who doesn't mind sending money to a bunch of thieves and ne'er-do-wells (the "studios", I mean... not Netflix).



anon6

@comcast.net

greed

its all about greed!


Wilsdom

join:2009-08-06
reply to aciddrink

Re: Piracy

Content providers were interested in using Netflix and Hulu as a piracy alternative, but now that they have mostly succeeded in crippling bandwidth and filtering the internet they are switching back to the old very profitable business model. They didn't expect it to be so easy.



Chuckem

@g4.net

Why I'll Ditch Them

The content providers had better be careful. I tried an experiment and went without my DirecTV for a month voluntarily. What I found was that I didn't need to pay $64.00 a month to watch 12 channels. I ditched DirecTV and I'll ditch any means of content that I deem unreasonably priced. I currently use Netflix but if their price gets too high I'll ditch them. With the advent of cheap professional digital movie cameras and post-processing computers I can watch a lot of good, innovative and inexpensive content over the internet and be more entertained than watching some of these 300 million dollar "blockbusters" that hollywood puts out.



MemphisPCGuy
Taking Care Business
Premium
join:2004-05-09
Memphis, TN
reply to ZeddicusToo

Re: One (at least) problem with that...

If you rely on Netfix / OTA for about 8 months as your primary movie/tv entertainment you will find new movies you have never seen before
--
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elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
reply to HB

Re: Studios should be careful what they ask for

said by HB:

For many people, Netflix is getting to be an essential service like gasoline and they will cut other entertainment to keep it.

Netflix, an essential service, "like gasoline" ?

Kamus

join:2011-01-27
El Paso, TX

Can't stop the internet...

Sure, they can try to mitigate the damage with caps if you are an ISP, and with outrageous prices if you are the content owners. For now...
Can't stop reality, as much as they try they can't change the fact that the internet has made their old business models obsolete.

If they keep capping like that, they'll go out of business even faster than they should, someone will find a way to get a new way to connect to the masses, the technology is available, and will only keep getting faster and faster.
So it doesn't matter what they do, there's really not a whole lot they'll be able to limit us with once gigabit connections become so cheap, that we don't even need to get it from them.

As far as the content industry goes, just how long do they think they can be the middle men?
What happens when companies like Netflix, that compete in a truly open market start becoming content owners?
They don't stand a chance. Netflix is just the start. In a few years, when bandwidth becomes even more abundant there are going to be a lot more opportunities for companies like that.
Just look at companies like justin.tv who specialize on live tv and do an amazing job at it.



ArrayList
netbus developer
Premium
join:2005-03-19
Brighton, MA
Reviews:
·RCN CABLE
·Comcast
reply to Wilsdom

Re: Piracy

sorry to say but they haven't succeeded in much of anything. Piracy is just as strong today if not stronger than it was 3-5 years ago. Content providers don't have a clue how to stop it. Legal means won't stop people from pirating. I don't think anyone really has any idea how to manage it.


tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

prices go up, guess what happens?

that market which can no longer afford legal alternatives does what....? expect itunes and others to follow along with the pack.. afterall, they really wanna see if the isps will do what they say they'll do... put themselves at risk of NOT having customers..

what else is new... fear mongering is a new 21st century -ing..
20th cenury was "-ism"s...



TCub
Premium
join:2008-09-03
Olmsted Falls, OH
kudos:4
reply to Thaler

Re: Time for netflix to put on some big-boy pants....

quote:
and everyone would only have the choice of $20 a DVD, $30 a Bluray off store shelves.
Fuck that. $20 DVD, $30 Bluray, or I'll download that shit for free. I'm not for piracy by any means - in fact I find people who pirate things to be pretty god damn annoying.. however, you make it difficult for me to enjoy your shit and guess what?

Now, I'm not saying 'oh I want all the content I want for $10 a month! it's my right!' .. I do have a pretty large iTunes library (45+ movies and over 500 TV shows) and I gladly payed for all of it and I will continue to do so. Just make it easy for me to get your content and I'll gladly pay!!!!

As for DRM, I'm sure iTunes has something on it but it's never bothered me. I've always got an iOS device (iPhone 3G, 3GS, 4, iPad, iPad 2) and my MacBook Pro and I take responsibility and back it up.. it hasn't been an issue for about 3 years so far so... Better than watching three hours of "FBI WARNING" screens then commercials before getting to the movie....
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