Re: RE : That Was Quick, Qwikster
Broadway
10/16/2011 8:49:13 PM
Netflix will not stop with its increased pricing unless there's customer flight. And that's not going to happen? Where will they go? I guess Hulu, but I don't think Hulu quite has the selection that Netflix has, nor the mail service at all.
RE : That Was Quick, Qwikster
yalanand
10/16/2011 10:41:27 AM
Though Qwikster is off the table, at least for now, Netflix is keeping the higher rates.
I dont understand why Netflix raised it rates especially when the market conditions are so volatile. People will not appreciate this rate hike because recession has forced them to cut their expenses. I hope Netflix will reconsider this rate hike decision.
Re: Maybe is was all a plan...
yalanand
10/16/2011 10:34:11 AM
DVD media is on its way out.
@TelecomFreq, Although DVD media is on its way out, Blue ray disc might replace that technology. A single Blue ray has capacity to contain hundreds of movies. If the internet charges for bandwidth usage goes up in future people might still prefer DVD-by-mail or Disc-by-mail method.
A fair point, but if the industry is truly moving away from hard media, it's going to have to be done sooner or later anyway. Naturally, it's a bit ridiculous to expect it to be done instananeously rather than gradually.
That aside, does Netflix not already have some form of lisence to loan out these Dvds for an unlimited amount of time? Aren't these media distributors and production agencies already taking a hit every time a dvd made by them is rented rather than purchased? Whether the media is viewed via a stream or by dvd/blu-ray seems inconsequential; the initial viewing and all subsequent viewings can all be done at he same flat rate.
Conversely, once a dvd is digitized, there's no need for another copy; once it all goes digital there's no need for Netflix to purchase multiple copies for multiple consumers.
answering my own questions is exhausting.
Making the full library avalible for streaming is not as easy as you might think, there are very complicated licencing agrements invovled in the rental business. The company who owns the content has to allow it to be streamed, and, of course they will want to be compensated for this.
The real issue is that most content providers see the all you can eat model that Netflix currently uses as cheapning their product. they want more money in licensing fees and other charges.
That I understand. However, Netflix has offered streaming videos through Xbox and Wii for a while, and only a portion of their library has been digitized; everything else must be sent via mail. Now this was fine under the old rates, but if they're raising rates and splitting services I should hope they're planning on digiizing thier full library.
Re: Qwikster
Broadway
10/15/2011 12:00:51 PM
They were trying to get out in front of the marketplace, which is inexorably headed toward streaming and away from hard media. The split suited that purpose symbolically and operationally. Two problems though were the terrible new name and there overestimation of how fast the market is traveling in that direction.
Re: Maybe is was all a plan...
AskAsa
10/15/2011 11:06:40 AM
I don't think separating the business was the problem. I think it was the failure to fully communicate the decision to customers -- and then to rename the service that people had initially associated with the brand. Why not leave the mailorder portion as "NetFlix" and rename streaming as "NetFlixXpress" or something like that? Over time, it would enable the company to ease out of mailorder without losing the connection with the Netflix name in the process.
I'm no scientist, but it looks like their first problem was deciding to make balloons out of lead....
My question is, when are they going to put their full collection online? As far as I've seen only a portion of their library has been made available for streaming.
Re: Maybe is was all a plan...
TelecomFreq
10/14/2011 2:43:53 PM
I think that the spliting of streaming and DVD rental was a smart move. DVD media is on its way out. I think it serves the companies best interests for growth to split them up and try to grow the streaming side while winding down the DVD mail rental.
Netflix is the leader in the streaming video market, and the curent move by Hulu to pull themself out of sale is only going to help Netflix's stake in the market.
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