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jims2321

join:2000-04-05
Oviedo, FL

Netflix not so smart?

The biggest reason I think Netflix is going to suffer is that their streaming side lacks current content. This alone will hurt their bottom line. Then the inability to stream if the user is a dvd subscriber. This really is going to impact their business.
--
There are no stupid questions, only stupid people with questions -- Albert Einstein 1947



FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

3 recommendations

said by jims2321:

This really is going to impact their business.

They are writing off DVD by mail business by renaming it and spinning it off. This is a purely financial move to get that business off the books of Netflix so that as DVD by mail is killed off it won't drag down the Netflix stock price. All the pretty words by Netflix's CEO is nothing but a smokescreen for the investors.
--
»www.rickperry.org/


88615298
Premium
join:2004-07-28
West Tenness
reply to jims2321

said by jims2321:

The biggest reason I think Netflix is going to suffer is that their streaming side lacks current content. This alone will hurt their bottom line. Then the inability to stream if the user is a dvd subscriber. This really is going to impact their business.

These moves by Netflix will allow them to get more content for streaming. Why people don't get this is beyond me.

if the person is DVD only subscriber they can't stream anyways. So I don't get your point.


FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

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.
--
»www.rickperry.org/


88615298
Premium
join:2004-07-28
West Tenness

said by FFH:

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
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet
reply to jims2321

said by jims2321:

The biggest reason I think Netflix is going to suffer is that their streaming side lacks current content. This alone will hurt their bottom line. Then the inability to stream if the user is a dvd subscriber. This really is going to impact their business.

To add:
I don't think that their streaming content will get better anytime soon. People will realize that $8 is a waste for the same old rehashed content.
--
The weekend is here, grab a can of beer!


spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet

1 recommendation

reply to 88615298

said by 88615298:

said by FFH:

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!
--
The weekend is here, grab a can of beer!


88615298
Premium
join:2004-07-28
West Tenness

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.


Jason Levine
Premium
join:2001-07-13
USA
reply 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?
--
-Jason Levine



88615298
Premium
join:2004-07-28
West Tenness

said by Jason Levine:

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.


88615298
Premium
join:2004-07-28
West Tenness
reply to spewak

said by spewak:

said by jims2321:

The biggest reason I think Netflix is going to suffer is that their streaming side lacks current content. This alone will hurt their bottom line. Then the inability to stream if the user is a dvd subscriber. This really is going to impact their business.

To add:
I don't think that their streaming content will get better anytime soon. People will realize that $8 is a waste for the same old rehashed content.

Netflix was ready to give Starz $250 mil a year for a new deal. That $250 mil will buy a lot of content from someone else. And not all of Netflix content is old. Heck I just watched the Expendables and The Fighter on Netflix streaming and no it's wasn't Starz Play either. It was regular Netflix and in HD unlike Starz movies.


Jason Levine
Premium
join:2001-07-13
USA

1 recommendation

reply to 88615298

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.
--
-Jason Levine



FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5
reply to jims2321

said by jims2321:

This really is going to impact their business.

Stock down another 5% today and down about 50% since mid July:
»finance.yahoo.com/echarts?s=NFLX···ndefined

Their CEO is apologizing because the board is going to toss his butt on the street soon if the stock keeps dropping.
--
»www.rickperry.org/

SixSpeed

join:2001-12-24
USA

said by FFH:

said by jims2321:

This really is going to impact their business.

Stock down another 5% today and down about 50% since mid July:
»finance.yahoo.com/echarts?s=NFLX···ndefined

Their CEO is apologizing because the board is going to toss his butt on the street soon if the stock keeps dropping.

Even in his apology he seems indifferent and cocky.

F him. I dropped them.


joe123Larry

@verizon.net
reply to Jason Levine

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.



KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
reply to FFH

They are being savaged on their blog. Rightly so. Nobody likes this move. Not customers, not investors, not pundits.

If they are smart they will back up on this.

.... I don't think they will.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini


Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1
reply to jims2321

I am going to laugh hard when the studios get their wish of a world without Netflix.

and then suddenly see their piracy numbers skyrocket. of course they will blame the pirates and not their own blundering stupidity of pushing licensing costs beyond greedy when working with Netflix.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports


SixSpeed

join:2001-12-24
USA
reply to jims2321

The issue here is the Netflix and the studios seem to be equally cocky and greedy. A perfect match.

I can understand trying to split the DVD business but the did is wrong, VERY wrong.