Netflix 'headed' toward streaming-only option-BD could expand 50% this year - High-Def Digest Forums
Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 02-27-2009, 12:44 PM
diggumsmax's Avatar
Senior Member
Thread Starter
 
Join Date: Feb 2007
Posts: 1,323
Default Netflix 'headed' toward streaming-only option-BD could expand 50% this year

This is pretty much proof to me that the two will coexist. Streaming isn't going to kill Blu-Ray and Blu-Ray isn't going to kill streaming. Both seem to be growing at a steady pace.

http://www.videobusiness.com/article/CA6640478.html
Quote:

Netflix 'headed' toward streaming-only option
Company's Blu-ray customer base could expand 50% this year

FEB. 26 | Netflix said yesterday that it's likely to add a video-streaming-only option for subscribers as the largest U.S. movie-rental service via mail shifts more of its resources toward digital content delivery. The company also estimated that the number of subscribers who rent Blu-ray discs could jump 50% this year.

"We're certainly headed in that direction," of a streaming-only subscription option, Netflix chief financial officer Barry McCarthy said at Jefferies 5th Annual Internet & Media Conference in New York yesterday. McCarthy declined to give a timeframe or a specific subscription rate, but he called a $5-a-month subscription rate for unlimited video-streaming "a little extreme" and said a $20 rate would be "at the opposite end of the spectrum."

Last month, Netflix said its fourth-quarter profit surged 45% as its customer base grew faster than it forecast last year. The company, which added more than 600,000 customers during the first six weeks of this year for a total of more than 10 million, attributed much of its recent growth to its efforts to augment its DVD-rental service with an expanded video-streaming offering.

The company also said it cut costs related to acquiring new subscribers.

Netflix reached agreements last year to make its more than 12,000 digital titles available for streaming through components such as Microsoft's Xbox 360 videogames consoles, TiVo digital video recorders and Blu-ray players from Samsung and LG Electronics. The company has estimated that subscribers for its DVD-delivery service will peak between 2013 and 2018.

In an interview with Bloomberg News last week, Netflix CEO Reed Hastings said the company might start offering the video-streaming-only subscription option as soon as next year.

Netflix also estimates that the number of customers who rent Blu-ray discs will reach 1 million by the end of the year, up from about 700,000 at the end of 2008, Netflix chief content officer Ted Sarandos said at the Goldman Sachs Technology and Internet Conference in San Francisco yesterday.

Sarandos added that Netflix customers added almost 2 million movies to their request queues during ABC's three-hour Academy Awards broadcast last Sunday.
Reply With Quote
  #2  
Old 02-27-2009, 01:03 PM
Senior Member
 
Join Date: Dec 2006
Posts: 4,973
Default

Quote:
Originally Posted by diggumsmax View Post
This is pretty much proof to me that the two will coexist. Streaming isn't going to kill Blu-Ray and Blu-Ray isn't going to kill streaming.
I still can't comprehend why some people think these technologies can't co-exist.

As for the article, the Blu-Ray estimates for 2009 seem low. Either he's being very conservative or he knows something we don't. I'm guessing its the former and they'll blow right past that one million BD subscribers in short order.
Reply With Quote
  #3  
Old 02-27-2009, 01:07 PM
Banned
 
Join Date: May 2007
Posts: 4,130
Default

They've got 12,000 titles, why the heck not make streaming-only an option?

They're hoping that maybe in a year or so they can offer it? What's the hold-up?

Perhaps they are trying to negotiate new release streaming so customers don't complain about not having access to them? Maybe they just don't have the server power to do it, or maybe they're worried about bandwidth caps killing streaming before it really gets started?
Reply With Quote
  #4  
Old 02-27-2009, 01:19 PM
IceNine's Avatar
Senior Member
 
Join Date: Jul 2007
Posts: 4,628
Default

Quote:
Originally Posted by Fettastic View Post
They've got 12,000 titles, why the heck not make streaming-only an option?

They're hoping that maybe in a year or so they can offer it? What's the hold-up?

Perhaps they are trying to negotiate new release streaming so customers don't complain about not having access to them? Maybe they just don't have the server power to do it, or maybe they're worried about bandwidth caps killing streaming before it really gets started?
They don't have many great titles... sure, there are a lot of titles, but not a lot of A-list titles.
Reply With Quote
  #5  
Old 02-27-2009, 01:19 PM
ack_bak's Avatar
Senior Member
 
Join Date: Jan 2007
Posts: 20,623
Default

Quote:
Originally Posted by Philnerd View Post
I still can't comprehend why some people think these technologies can't co-exist.
After CES 2009, it is pretty clear the CE industry expects the two technologies to co-exist. Netflix, IMHO, has found the right mix. Want a new release, or want better quality? Get the Blu-Ray. You can stream most anything else.


Quote:
As for the article, the Blu-Ray estimates for 2009 seem low. Either he's being very conservative or he knows something we don't. I'm guessing its the former and they'll blow right past that one million BD subscribers in short order.
It is the current economy. I think most analysts and talking corporate heads are being as conservative as possible. I personally expect Netflix BD subscribers to blow by this number by the end of the year.
Reply With Quote
  #6  
Old 02-27-2009, 01:19 PM
diggumsmax's Avatar
Senior Member
Thread Starter
 
Join Date: Feb 2007
Posts: 1,323
Default

Quote:
Originally Posted by Philnerd View Post
I still can't comprehend why some people think these technologies can't co-exist.

As for the article, the Blu-Ray estimates for 2009 seem low. Either he's being very conservative or he knows something we don't. I'm guessing its the former and they'll blow right past that one million BD subscribers in short order.
To be clear, I always thought they would coexist. Some people seem to think it has to be one or the other.
Reply With Quote
  #7  
Old 02-27-2009, 01:38 PM
Grubert's Avatar
Senior Member
 
Join Date: Oct 2006
Posts: 4,340
Default

How much would you pay for a streaming-only option?
Reply With Quote
  #8  
Old 02-27-2009, 01:40 PM
ack_bak's Avatar
Senior Member
 
Join Date: Jan 2007
Posts: 20,623
Default

Quote:
Originally Posted by Grubert View Post
How much would you pay for a streaming-only option?
I wouldn't. Streaming only does not give you access to newer releases. I personally think Netflix may have a hard time selling a streaming-only version unless they are able to get new releases on board as part of that deal, but I don't see it happening.
Reply With Quote
  #9  
Old 02-27-2009, 01:46 PM
diggumsmax's Avatar
Senior Member
Thread Starter
 
Join Date: Feb 2007
Posts: 1,323
Default

Quote:
Originally Posted by ack_bak View Post
I wouldn't. Streaming only does not give you access to newer releases. I personally think Netflix may have a hard time selling a streaming-only version unless they are able to get new releases on board as part of that deal, but I don't see it happening.
I'm wondering if they are waiting a year to try to get new release streaming in place. Makes you wonder what kind of deals Netflix is trying to get in place behind closed doors with the studios. I would pay $20 a month to be able to stream new titles. Doubt this would happen. It wouldn't be Blu quality but there is something nice about instant gratification.
Reply With Quote
  #10  
Old 02-27-2009, 01:48 PM
Banned
 
Join Date: May 2007
Posts: 4,130
Default

Quote:
Originally Posted by ack_bak View Post
I wouldn't. Streaming only does not give you access to newer releases. I personally think Netflix may have a hard time selling a streaming-only version unless they are able to get new releases on board as part of that deal, but I don't see it happening.
If I had to guess, Netflix is proposing this out of a need to start seeing profit from all those conversions they are paying for and extra royalties they have to send back to studios to use them. Nothing in this world is free and they need to start recouping that money.

I'm sure they got into streaming in the first place as a long term plan to make more money on rentals because they could do away with the whole postal service as well as not having to replace bad discs. They're going to have to figure out a way to start pushing the market towards that model to see the payoff. I'm sure this is what the deals with Microsoft, Samsung and LG represent. With DD languishing and BD taking off like a rocket I think it's going to be a harder transition than they had hoped.

Last edited by Fettastic; 02-27-2009 at 03:08 PM.
Reply With Quote
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
Netflix Set to Expand Original Film Production for 2019 scohen HD Digital Downloads (NEW!) 0 12-19-2018 01:13 PM
Netflix Plans to Increase Prices and Expand Cable Box Integration scohen HD Digital Downloads (NEW!) 4 03-09-2016 12:11 AM
Netflix Should Restore DVD Option on Streaming Devices, Poll Says towergrove High Definition Smackdown 71 01-29-2011 07:43 PM
Netflix Profits Up, Considering Streaming-Only Option This Year Ray Von High Definition Smackdown 261 11-18-2010 06:57 PM
Netflix To Expand Blu-ray Inventory jed Blu-ray Software General Discussion 20 03-03-2008 08:10 PM


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off