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88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to FFH5

Member

to FFH5

Re: Netflix not so smart?

said by FFH5:

said by 88615298:

These moves by Netflix will allow them to get more content for streaming.

You say that, but do you have any proof? All actions so far say Hollywood is intent on drying up their content or raising costs so high that users will abandon Netflix as their prices start doubling and tripling.

Sure. Before the "price increase" 1 DVD at a time and streaming was $10. So basically people were getting up to 10 DVDs a month delivered for $2 a month. That's a loss leader. That money saved can be used for streaming content. Also they project 800K fewer DVD only subscibers. Ok that 's fewer DVDs that need to be bought fewer red envelopes to be bought, less postage to be paid. Once again that money saved can be used to acquire more streaming content.

spewak
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join:2001-08-07
Elk Grove, CA
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spewak

Premium Member

said by 88615298:

said by FFH5:

said by 88615298:

These moves by Netflix will allow them to get more content for streaming.

You say that, but do you have any proof? All actions so far say Hollywood is intent on drying up their content or raising costs so high that users will abandon Netflix as their prices start doubling and tripling.

Sure. Before the "price increase" 1 DVD at a time and streaming was $10. So basically people were getting up to 10 DVDs a month delivered for $2 a month. That's a loss leader. That money saved can be used for streaming content. Also they project 800K fewer DVD only subscibers. Ok that 's fewer DVDs that need to be bought fewer red envelopes to be bought, less postage to be paid. Once again that money saved can be used to acquire more streaming content.

You keep rehashing the Netflix CEO's rantings! Look where it has put them. They split the company. Their stock nosedived. The Industry wants to kill Netflix. If you and Reed don't see that yet, it is back to Business 101 for the lot of ya!
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

said by spewak:

You keep rehashing the Netflix CEO's rantings! Look where it has put them. They split the company. Their stock nosedived. The Industry wants to kill Netflix. If you and Reed don't see that yet, it is back to Business 101 for the lot of ya!

So renting 8 DVDs a month per customer for $2 is a viable business solution. Yeah ok business guru.

Stick nosedived because investors are morons.

TechyDad
Premium Member
join:2001-07-13
USA

TechyDad to 88615298

Premium Member

to 88615298
What you're ignoring is that, before the split, Netflix used their DVD service to negotiate with studios. They agreed to a 30 day DVD waiting period and, in return, got more streaming titles (and reduced DVD prices).

Now what will they use to negotiate with the studios who see any streaming as a threat to DVD sales?
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

said by TechyDad:

What you're ignoring is that, before the split, Netflix used their DVD service to negotiate with studios. They agreed to a 30 day DVD waiting period and, in return, got more streaming titles (and reduced DVD prices).

Now what will they use to negotiate with the studios who see any streaming as a threat to DVD sales?

Streaming isn't the threat for newer movies. Not yet anyways. It's Netflix and Redbox allwoing DVD rentals for $1 or less. Back when video stores existed and charged $5 for a DVD some people said "heck for another $10 I can own the thing". Also the studios made more money from videos stores that charged $5 than when Netflix/Redbox charges $1.

TechyDad
Premium Member
join:2001-07-13
USA

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TechyDad

Premium Member

The problem is that the studios *do* see streaming as a threat. They don't want people to be able to pay $8 a month and watch unlimited movies/TV shows. They want people to pay $15 (or more) to get the DVD.

They've consistently held back on allowing Netflix to stream recent titles. The Starz deal was a bit of a loophole that Netflix exploited. The studios hated it but couldn't do much about it. When the Starz deal ends, Netflix will need to ask the studios individually to allow them to stream recent movies. When that happens, Netflix will be at the studios' mercy as to what they get allowed to stream and at what price.

joe123Larry
@verizon.net

joe123Larry to TechyDad

Anon

to TechyDad
Well how many DVDs have they bought from the studios.

Both sides are going to take a hit. Though Netflix looks to be trying to forcing the studios' hands. Well we are not going to be buying anymore DVDs which is a decrease in your pocket of millions, though we have this streaming service over here where you can make up some of that money.