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Old July 13 2011, 04:42 PM   #84
gh4chiefs
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Location: Jefferson City, MO
Re: Netflix shoots itself in the foot... aka no more free streaming

bigdaddy wrote: View Post
What made Netflix great is you can watch things online, mainly older things, and still get newer movies in the mail. That's all gone now.
It's not "all gone" it's just going to cost more. It's just a price increase. It happens. Seen the price of gas lately?

Individuals will have to make the choice whether it's worth it or not, and many will cancel, that's how the market works. Netflix has calculated that the amount of people that leave will be offset by the increase in revenue from the price increase. Are they right? Time will tell.

I think more troubling is this news:
As this story on CNNMoney explains and even Netflix's own CEO Reed Hastings has revealed, Netflix will have to shell out millions and millions of dollars (if not billions) just to keep the content it currently offers in its Watch Instantly library. During June's D9 conference in California, Hastings readily admitted that it was going to cost money to deliver the kind of streaming experience customers demand: "Part of our goal is to make subscribers happy and part is to make our content partners really happy and part of that is writing really big checks," he said.

CNN reports that many of the contracts Netflix signed with the studios had a user cap. As Netflix blows by those caps, the contracts implode and Netflix loses access to the content. Paying a lot more money is one way to get the movie and TV shows back, but the new deals Netflix signs will be far more expensive than those the partners drafted three or four years ago.
http://www.pcmag.com/article2/0,2817,2388343,00.asp
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