Exclusive interview with netflix ceo reed hastings - High-Def Digest Forums
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Old 04-09-2011, 01:32 AM
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Default Exclusive interview with netflix ceo reed hastings

Good interview!

Quote:
Henry Blodget: Welcome, Reed! Thanks for doing this. Ten years ago, I remember when Netflix was originally thinking of going public, you were a tiny DVD-by-mail business, and everybody smart I talked to said there’s no chance in hell this thing ever works. Here we are ten years later, 20 million subscribers, two billion in revenue, 12 billion dollar market cap. Where do you think you’ll be ten years from now?

Reed Hastings: Well sticking with ten years ago, we couldn’t even get a meeting with you. (Laughs) Anyway, where are we in ten years? I don’t know, I couldn’t have predicted where we are from then.

BI: So it’s bigger than you thought it might’ve been?

RH: Oh, bigger and different. We were back in 2001. We were not yet profitable. We were growing on DVD and wondering how things will work. There are a lot of differences.

http://www.businessinsider.com/netfl...ew-2011-4?op=1
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Old 04-09-2011, 02:26 AM
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Not surprisingly, none of the questions I have regarding the company were really addressed in this interview.

It seems based on the chart presented that they are still attempting to spin their homebrewed metric of any streaming view of greater than 15 minutes = the entire show's duration for calculating "total" streaming hours viewed.

Also interesting is the way he tapdances around the concerns raised regarding the upcoming changes by ISPs to start imposing data caps on users and how that may impact Netflix plans to "replace" conventional cable subscriptions with their service.

Basically just the same "news" that they have been spinning for the past couple of month's now.
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Old 04-09-2011, 02:30 AM
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I am sure it will get "reported" rather than addressed.
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Old 04-09-2011, 09:51 AM
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Good article, thanks for posting it.
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Old 04-09-2011, 09:57 AM
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That chart really only says that as they have promoted streaming more that people have tried it out to a degree. But thats a pretty low bar to reach of a 15 minute metric and some would say why isn't it higher? From my perspective it makes sense as bandwidth restrictions hold some back but it says really nothing on user activity beyond sampling the streaming service offerings.

I continue to see TV shows and older content being the best play for Netflix here and thats fine with me.

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Old 04-09-2011, 10:01 AM
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The free streaming with Amazon Prime looks very competitive here in the movie availability while Netflix would seem to have the advantage with the old TV shows and long tail movie content.

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Old 04-09-2011, 10:10 AM
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Netflix is not substituting for cable or sat in a large way. Its a supplemental service on top of it for the most part.

This exchange was interesting:

Quote:
BI: What percentage of the 20 million now have cancelled cable or other TV?

RH: Everyone, essentially, on Netflix has a TV service and also 30% of them have HBO, which is the national average.
BI: So right now, it’s definitely not an either/or, in fact it’s just how many more services can you pile on top of your existing cable service?
RH: Yes, that’s right. We’re like one more cable network. We’ve grown from in the last three years, the number of streaming accounts in the US from zero to 20 million, and MVPD (multi-channel video programming distributor) is basically steady, so last year, total MVPD in the US went down slightly, or the first three quarters of the year, but that was largely due to the recession. And then in Q4, total MVPD households went back up. And if Netflix were a substitute, you would see MVPD going down like landlines have, or something like that, which you don’t see.


Read more: http://www.businessinsider.com/netfl...#ixzz1J2EKEee2
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Old 04-09-2011, 10:20 AM
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The simple declaration that Netflix was focusing on a $7.99 all you can eat subscription streaming plan and would not go into pay per view or sell through does seem to place an upper limit on possible revenues and that may impact on the amount of money they have to buy newer content.

But it should be easy for them to sustain buying older TV shows and older movies that have aged out of the current windows and add some new content just for spice along with having newer stuff on DVD and Blu-ray Disc rental.
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Old 04-09-2011, 10:56 AM
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Quote:
Originally Posted by Kosty View Post
Good article, thanks for posting it.
Yeah, I found it very informative regarding Netflix's current HD offerings, their plans for HD in the future, and improving the quality of the SD streams. All information that would warrant an article like this getting it's own thread at a HD message board.


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Old 04-09-2011, 11:25 AM
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Quote:
Originally Posted by Kosty View Post
The simple declaration that Netflix was focusing on a $7.99 all you can eat subscription streaming plan and would not go into pay per view or sell through does seem to place an upper limit on possible revenues and that may impact on the amount of money they have to buy newer content.

But it should be easy for them to sustain buying older TV shows and older movies that have aged out of the current windows and add some new content just for spice along with having newer stuff on DVD and Blu-ray Disc rental.
Remember that Netflix already has long term contracts with Epix HD and Relativity for newer releases.

If Starz does not get renewed (unlikely), I expect them to cut a deal directly with Disney. Disney's CFO already discussed Netflix as a growing revenue stream (via a Starz renewal).
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