Re: What is the Value?
TelecomFreq
12/12/2011 9:44:09 AM
in this case I think the wrong way would be an understatement.
It will need to be done going forward, I think if they were able to dramaticly boost their online content that would go a long way to helping the cause.
Re: What is the Value?
tokyogai
12/12/2011 9:35:07 AM
After the mess and retraction last time, it will be much harder to do in the future. I agree that it is the right move, but it was really done the worng way.
Re: What is the Value?
TelecomFreq
12/12/2011 9:14:33 AM
Though I think its easy to say Netflix is out of touch with its customers, I still think trying to split DVD rental from streaming was the right move, I just think they went about it in the way wrong way. And I still think its something they will try to make happen again in the near future.
Re: What is the Value?
tokyogai
12/12/2011 8:40:34 AM
I agree it is a difficult task and I see no signs that Mr. Hastings will be sucessful. he somehow seems to have lost touch.
Re: What is the Value?
Value Hiker
12/12/2011 2:03:13 AM
The "First Sale Doctrine" establishes the solid foundation for NetFlix's successful DVD rental business. NetFlix can acquire any movies issued on DVD at fixed cost and rent them to anyone. Media companies have no way to stop or even slow Netflix's progression.
Streaming is a totally different story, the "First Sale Doctrine" does not apply to streaming video. For Netflix, the cost of streaming business is unlimited why the rights are limited. Sometime, Media companies can simply reject Netflix to access its content library.
Now nobody knows if Reed Hastings can fix the broken streaming business model. I shall say it is not a easy task, even for Mr. Hastings.
Blockbuster also has a presence in the streaming business, having deals with Facebook and Dish Network. This, together with retail storefronts and DVD's by mail make Blockbuster something of a triple-threat. They also recently expanded their selection of '80's B-movies after long being deficient in that area.
I am trying to think of what the value is that Netflix offers that is unique and differentiated. It seems to me that the technology to download music/film is becoming pervasive and built into everything (cable TV, XBox, Web, e.t.c.). In the end what Netflix has is distribution contracts and streaming technology but in fact these can all be replicated by many services so Netflix is going to have its hands full trying to keep this market to themselves. In the end the content owners own the value that the user is downloading, so Netflix will continue to find themselves in a weak bargaining position with the content owners going forward.
Re: Amazon streaming
ProfR
12/11/2011 8:22:01 AM
yes, Netflix has a growing list of solid competitors. They need to rethink some of their recent moves.
Re: Amazon streaming
Phoenix
12/11/2011 8:15:58 AM
I haven't tried out Amazon either. From what you have said it looks like their streaming service is really good. I think it's time Netflix got in touch with its customers and focused on catering to their changing needs. It should also have a good look at what its competitors are doing.
Re: Amazon streaming
back2basicz
12/10/2011 10:28:48 AM
Prof,
Amazon remains the key player in this space.
With their Kindle Fire rollout now a Total success;I would never bet against this behemoth.
Its good to hear your experiences with them were so good.
Amazon has got all those humungous resources(not to mention Jeff Bezos spirit) backing them.
Wth Amazon,Hulu,Apple,DISH and Walmart all snapping at their heels Netflix better up their game and wary or they will have no market/customer-base left to speak off.
Regards
Ashish.
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