elray
join:2000-12-16
Santa Monica, CA | What's 28 days? Sorry, but I don't see how anyone "loses" with this arrangement.
This is exactly how it should be priced - first run carries a huge premium, and the price decays exponentially thereafter. |
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 cdruGo ColtsPremium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:5
 ·Frontier FiOS
| said by elray:This is exactly how it should be priced - first run carries a huge premium, and the price decays exponentially thereafter. However in this case, that's not exactly how it is. Netflix isn't getting a reduction in price for delaying the release of their copies, they are still paying the same price. They just have to "pay the additional price" of waiting 28 days to gain access to the studio's catalog of movies. |
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boredguy
join:2002-01-27
St Catharines, ON | said by cdru:said by elray:This is exactly how it should be priced - first run carries a huge premium, and the price decays exponentially thereafter. However in this case, that's not exactly how it is. Netflix isn't getting a reduction in price for delaying the release of their copies, they are still paying the same price. They just have to "pay the additional price" of waiting 28 days to gain access to the studio's catalog of movies. Says right in the article that Netflix will pay less for the rental discs now.
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What would Jesus do for a Klondike bar? |
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cdruGo ColtsPremium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:5 Reviews:
·Frontier FiOS
| said by boredguy:Says right in the article that Netflix will pay less for the rental discs now. Apparently I glossed over that part. Oops. |
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| reply to elray
Exactly! It's a model everyone understands! Its called: depreciation. |
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elray
join:2000-12-16
Santa Monica, CA Reviews:
 ·SONIC.NET
 ·RoadRunner Cable
| reply to cdru
said by cdru:said by elray:This is exactly how it should be priced - first run carries a huge premium, and the price decays exponentially thereafter. However in this case, that's not exactly how it is. Netflix isn't getting a reduction in price for delaying the release of their copies, they are still paying the same price. They just have to "pay the additional price" of waiting 28 days to gain access to the studio's catalog of movies. While it does reduce Netflix' cost, I was referring to the end consumer cost. The studios are wising up. They are beginning to understand how to milk the maximum rental value - PPV / premium prices can only be sustained for a month. Most of the time, I'd rather just wait an extra interval, whatever that may be, and have it included in the monthly flat-rate, OR have the PPV cost drop to $1 or less. Netflix' 28 day deal further cements the concept. |
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