Tuesday, July 12, 2011

Nope, No Way, Maybe

I’m not paying Netflix double what I’m paying now for what it gives me.

I used to get three at a time DVD’s with the streaming service when it came in. I added the Blu-ray when it became available.

I cut back to one DVD at a time when I ran out of new movies I wanted to watch.

All the while, I read about the business model. I should have known.

Netflix doesn’t want to send me round pieces of plastic. That costs too much money. And, most people want instant gratification.

People pay more for instant.

Then too, Netflix’s content providers saw all the money it was making on the sweet streaming deals it had signed. They wanted more of the pie.

What to do, what to do.

The future is streaming and streaming content is going to cost more money. And, DVD’s have high overhead.

We have no real competition for either service.

Ta Da!

Split it Netflix decided and it is a good decision for Netflix. More money to pay the content providers on the streaming and plastic ends of the business. More marginal income on both sides too.

They’ll lose some people, probably like me on both ends and keep one or the other income streams from most people.

I’m not sure what I’m going to do. I’m almost sure I’ll drop the DVD service – Redbox and Amazon will be the beneficiaries of my plastic or streaming purchases of new releases. The question is whether I’ll succumb to Netflix being the only real source of broad choice streaming content. I don’t want to; but, I might. Doing so, gives Netflix about the same revenue it gets now with no physical costs and I really don’t like the fact that Netflix has the leverage and I don’t.

I’m off to research steaming content sources and will let you know what I come up with, if I come up with something.


Anonymous said...

I'm just thinking out loud, but: how much would it cost to subscribe to a premium cable channel and record the movies you want to see?

Dave said...

The premium channels cost what Netflix charges, or more; and, they don't have first run movies, or much "back list" stuff. They are kind of high end TV channels.

I'm going to look into Hulu.

Big Mark 243 said...

I was hearing some stuff about Hulu needing to make changes to its business model to increase revenue...(or so the Germans would have you believe)

I was thinking of dropping cable entirely... but I am addicted to both football and March Madness..! I have tried but I just can't kick it.!!

fermicat said...

I haven't had time to think about what to do about Netflix (work is kicking my ass and my evenings are way too short), but I really wish they had their best stuff available for streaming (which they don't). Some of it makes sense, and some things don't - I think they should work harder to make deals with studios. I would pay more to have their entire library of everything available via streaming. But most of what we really want to see is only available on disk (we watch a lot of fairly recent TV series like Lost, Alias, and Big Band Theory).

We just switched our cable service to U-verse and get a whole bunch more movie channels and are DVRing lots of movies, but if we dropped netflix it would be those old TV series we'd miss. About 95% of the disks we get mailed are for TV stuff we never watched the first time around.

fermicat said...

Oh good grief. Big BANG, not Big BAND.