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thegeek
Premium
join:2008-02-21
right here
kudos:2

Why Would Netflix Worry?

The consumer is still going to subscribe to Netflix if that is what they want. If they have a low cap then they end having to stream fewer movies. The fewer movies that Netflix has to deliver to the consumer the higher their profit margin.


AkFubar
Admittedly, A Teksavvy Fan

join:2005-02-28
Toronto CAN.
Reviews:
·TekSavvy DSL
Plus they have no contractual obligations with carriers or overhead stock to deliver movies like they do in the states. If things don't work out, they load up the servers and move to Beverly.... you know the rest.
--
If my online experience is enhanced, why are my speeds throttled??


fifty nine

join:2002-09-25
Sussex, NJ
kudos:2
reply to thegeek
Exactly my thoughts. Netflix must be thankful for bandwidth caps. The "all you can eat" model has a limit and they get to blame ISPs for that limit.


88615298
Premium
join:2004-07-28
West Tenness
reply to thegeek
said by thegeek:

The consumer is still going to subscribe to Netflix if that is what they want. If they have a low cap then they end having to stream fewer movies. The fewer movies that Netflix has to deliver to the consumer the higher their profit margin.

The fewer movies I can stream the less of a bargin Netflix seems. Thus I cancell my subscription which = LOST REVENUE.

sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
reply to thegeek
Caps will destroy the appeal of their service. Netflix's major costs are not associated with bandwidth, which is dirt cheap.


jazzlady

join:2005-08-04
Tannersville, PA
reply to 88615298
said by 88615298:

said by thegeek:

The consumer is still going to subscribe to Netflix if that is what they want. If they have a low cap then they end having to stream fewer movies. The fewer movies that Netflix has to deliver to the consumer the higher their profit margin.

The fewer movies I can stream the less of a bargin Netflix seems. Thus I cancell my subscription which = LOST REVENUE.

The fewer movies a person can legally stream because of low caps becomes the more illegal divx avi's that get pirated because the files are smaller.

This = LOST revenue for both Netflix and content providers.

Why can't they just give people the fast dumb unlimited pipe they are asking for? I'd pay $100 a month for that. It would allow me to dump my useless commercial-laden cable tv, and it would still be cheaper than what I pay now.