Where is the growth opportunity?
I'm a pro netflix guy, subscriber since 2002. I am just a streaming only subscriber now, and it is great for kids shows, and I've enjoyed some of the AMC shows they have now.
DVD business is dying fast. They'll be extinct as CDs in a couple years. So where do they grow their business. They've pretty much saturated the market now. I don't see a whole of people subscribing to Netflix who don't already.
They are strictly a niche provider of post theatrical/ppv/disc/pay tv window movies. No need to get in the ppv game, as any tv with a few components hooked up probably has access to 8 different providers offering those. Where do they go from here? Probably more valuable to Google, Amazon or Apple to fold into their offerings than anything else, I'd guess. Their stock price is ridiculous, even after coming back to earth a bit.
We cancelled the streaming because we have enough kids shows at the house and the streaming selection of movies was just the pits unless you liked old or B movies.
Streaming won't be a threat to DVDs until they can get the exact same titles on the same release dates. At this rate that's going to be a long time.
Even Netflix themselves state that 60% of their streaming are TV shows where as only 18% of their DVD rentals are TV shows. There in lies the fact that people are mainly using DVD for new releases and the streaming just to fill in the gaps.
Plus, how's that ISP cap going to work out streaming 1080p/24 with full DTS?