dslreports logo
 
    All Forums Hot Topics Gallery
spc
uniqs
82

TechyDad
Premium Member
join:2001-07-13
USA

TechyDad to 88615298

Premium Member

to 88615298

Re: Netflix not so smart?

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

1 recommendation

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.