Robert Maxwell wrote:
The licensing costs are where Netflix is liable to get fucked in the foreseeable future, . . .
Yeah from what I read on news sources, apparently the studios are demanding really large licensing fee increases beause they're figuring out that if everybody is streaming their content, no one is buying dvds/blu-rays.
I understand the physical costs of the DVD service are high compared to streaming, but one has to wonder if in the end, the ROI is really going to be that much better for the streaming business.
I think Netflix knows that streaming is the future, and they want to be the first to corner that market. The fact is, DVD sales are down, and while Blu-ray sales continue to rise, they aren't making up for the decline in DVD sales. Demand for physical media continues to fall and Netflix is not ignorant of that trend.