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Old September 20 2011, 09:20 PM   #306
gh4chiefs
Rear Admiral
 
Location: Jefferson City, MO
Re: Netflix shoots itself in the foot... aka no more free streaming

Robert Maxwell wrote: View Post
gh4chiefs wrote: View Post
Robert Maxwell wrote: View Post
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.
I would venture to say that Netflix is in a large part responsible for that decline, coupled of course with the godawful economy. I'm sure I'm not the only one that scaled backed their DVD purchasing because of Netflix.

I still say streaming is going to run afoul of the move by ISPs to cap bandwidth at some point and then where will the "streamers" be?
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