Netflix is dead

January 10, 2007 By

Ahh, I was right. The coolest stuff at CES is over at the Sands. Too bad Dave Winer left before he could get over there. And I’m not talking about the adult entertainment convention that’s going on there right now either.

As an example over there I dropped in on Verisign’s booth. It’s very easy to miss what they are now shipping: a Netflix killer.

Here’s what they were demoing: a peer-to-peer system for selling and distributing high-def videos. It really rocks. I downloaded a movie while there in the booth and the quality wasn’t distinguishable from the HD-DVD’s I get from Netflix.

It made me realize why would any of us go into a Blockbuster in the future, or wait two days for a DVD to show up from Netflix.

There are several companies that are trying to do the same thing as Verisign — distribute videos over P2P networks to reduce distribution cost and improve time to get a movie to you.

The problem is that those networks require users to load some software on their machines. Anytime I hear that I realize that getting people to do that is going to be difficult.

But on Monday Verisign announced a deal with Adobe who’ll distribute their P2P infrastructure along with the next version of the Flash player. That’ll get it into tons of homes nearly overnight.

Translation: Netflix and Blockbuster have a LOT to be worried about.

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Rick Hanley

Netflix Subscriber Statistics
From SEC 8-K 1/9/2007
———————–
It works in Excel and Word? Anyway, there are 6 columns. One key item is that the 2nd and 3rd Qtr’s of 2006 show significantly slowing growth of ‘Total Subscribers’ on a percentage basis. 6.23% and 9.54%, respectfully, on a quarterly basis. These percents are less than half of most earlier quarterly growth percentages.

Quarter Total q/q Gross Adds Quit Net Adds
12/31/04 2,610 NA 783 402 381
03/31/05 3,018 15.63% 945 537 408
06/30/05 3,196 5.90% 707 529 178
09/30/05 3,592 12.39% 921 525 396
12/31/05 4,179 16.34% 1,156 569 587
03/31/06 4,866 16.44% 1,377 690 687
06/30/06 5,169 6.23% 1,070 767 303
09/30/06 5,662 9.54% 1,310 817 493
———————————–
From the table above, here’s the column for how many subs quit the service each qtr from 4th qtr, 2004 to 3rd qtr, 2006
—————
Quit Netflix
4th qtr, 2004 — 402
1st qtr, 2005 — 537
2nd qtr, 2005 — 529
3rd qtr, 2005 — 525
4th qtr, 2005 — 569
1st qtr, 2006 — 690
2nd qtr, 2006 — 767
3rd qtr, 2006 — 817
——————
This is important because it shows that, over time, more than half the people who have tried the service quit. It reduces the pool of potential new subscribers and requires ever expanding marketing.
NETFLIX IS DEAD
Rick Hanley

Netflix Subscriber Statistics
From SEC 8-K 1/9/2007
———————–
It works in Excel and Word? Anyway, there are 6 columns. One key item is that the 2nd and 3rd Qtr’s of 2006 show significantly slowing growth of ‘Total Subscribers’ on a percentage basis. 6.23% and 9.54%, respectfully, on a quarterly basis. These percents are less than half of most earlier quarterly growth percentages.

Quarter Total q/q Gross Adds Quit Net Adds
12/31/04 2,610 NA 783 402 381
03/31/05 3,018 15.63% 945 537 408
06/30/05 3,196 5.90% 707 529 178
09/30/05 3,592 12.39% 921 525 396
12/31/05 4,179 16.34% 1,156 569 587
03/31/06 4,866 16.44% 1,377 690 687
06/30/06 5,169 6.23% 1,070 767 303
09/30/06 5,662 9.54% 1,310 817 493
———————————–
From the table above, here’s the column for how many subs quit the service each qtr from 4th qtr, 2004 to 3rd qtr, 2006
—————
Quit Netflix
4th qtr, 2004 — 402
1st qtr, 2005 — 537
2nd qtr, 2005 — 529
3rd qtr, 2005 — 525
4th qtr, 2005 — 569
1st qtr, 2006 — 690
2nd qtr, 2006 — 767
3rd qtr, 2006 — 817
——————
This is important because it shows that, over time, more than half the people who have tried the service quit. It reduces the pool of potential new subscribers and requires ever expanding marketing.
NETFLIX IS DEAD
http://viewofthesea.blogspot.com Rupert Watson

Robert, whilst it is not movies, I realise, the BBC are heading in this direction as well. Mark Thompson – the Director General of the BBC – is keen to get this peer to peer thing rolled out, as it means the BBC would no longer be bound to the tyranny of the broadcast schedule and the need to pay for transmission over the air would decline Additionally, the BBC brand could be leveraged worldwide.

They commissioned Zudeo to build them a Limewire-like P2P system which will allow them to position content ahead of time in the PC/Set-top box/AppleTV based on your preferences. They already have the iPlayer which allows you to carry BBC prgrammes acquired in this way working already.

Instead of expensively radiating content over the airwaves 24/7 in the traditional manner that broadcasters do – hoping someone’s watching or using their PVR – they will fill your hard disk with enough torrented material to satiate your every conceivable viewing desire. They will “enable” the DRMed pieces of the torrent at a pre-determined time (a bit like now, just it isnt being broadcast) and allow you to watch the programme for seven days or so before turning it off – depending on the rights they have negotiated with the talent in the programme. So instead of reading a review of a TV programme and wishing you had seen it you can go to the TV and search for it and watch it.

What he did say is that the filter/search layer of this technology is not where they would like it to be and that the Beeb are looking for a player to give them the killer app that allows you to leverage the wisdom of crowds to discover things you didnt know you might like or had missed as well as exercising your own preferences.
http://viewofthesea.blogspot.com/ Rupert Watson

Robert, whilst it is not movies, I realise, the BBC are heading in this direction as well. Mark Thompson – the Director General of the BBC – is keen to get this peer to peer thing rolled out, as it means the BBC would no longer be bound to the tyranny of the broadcast schedule and the need to pay for transmission over the air would decline Additionally, the BBC brand could be leveraged worldwide.

They commissioned Zudeo to build them a Limewire-like P2P system which will allow them to position content ahead of time in the PC/Set-top box/AppleTV based on your preferences. They already have the iPlayer which allows you to carry BBC prgrammes acquired in this way working already.

Instead of expensively radiating content over the airwaves 24/7 in the traditional manner that broadcasters do – hoping someone’s watching or using their PVR – they will fill your hard disk with enough torrented material to satiate your every conceivable viewing desire. They will “enable” the DRMed pieces of the torrent at a pre-determined time (a bit like now, just it isnt being broadcast) and allow you to watch the programme for seven days or so before turning it off – depending on the rights they have negotiated with the talent in the programme. So instead of reading a review of a TV programme and wishing you had seen it you can go to the TV and search for it and watch it.

What he did say is that the filter/search layer of this technology is not where they would like it to be and that the Beeb are looking for a player to give them the killer app that allows you to leverage the wisdom of crowds to discover things you didnt know you might like or had missed as well as exercising your own preferences.
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Rich Willsby

Love It! Tried Netflix and they don’t quite rock! Sound better than 2 days for a movie and scratched discs!
Rich Willsby

Love It! Tried Netflix and they don’t quite rock! Sound better than 2 days for a movie and scratched discs!
Pingback: O’DonnellWeb - This is not a homeschooling blog » Blog Archive » The reason I’m not an A list blogger
jbelkin

Adobe & Verizon?

You might as well say Venezuala & Cuba – all four are clearly living in the last century. Yea, Verizon talks a lot but they are just telco bureaucrats – they’ll never get anything to scale correctly – hell, they don;’t even have the right phone technology going forward.
jbelkin

Adobe & Verizon?

You might as well say Venezuala & Cuba – all four are clearly living in the last century. Yea, Verizon talks a lot but they are just telco bureaucrats – they’ll never get anything to scale correctly – hell, they don;’t even have the right phone technology going forward.
http://bscoble.blogspot.com/ Ben Scoble

Netflix is dead is a bit harsh. I am not ready to hook up my laptop to my tv. But what I would like to see is somehow share my TIVO files with other TIVO users. Is that being addressed or am I still out of $30000?
http://bscoble.blogspot.com Ben Scoble

Netflix is dead is a bit harsh. I am not ready to hook up my laptop to my tv. But what I would like to see is somehow share my TIVO files with other TIVO users. Is that being addressed or am I still out of $30000?
http://annaea.wordpress.com/ Anna

NetFlix isn’t dead as long as non-techie types — like me – find it easy and convenient to use and understand. I don’t even know what this p2p is, but it sounds like it involves downloading things, which is a pain to do.

NetFlix is more convenient then dealing with trying to get my six year old in and out of a video store sans temper tantrum, has more variety then the video place, and is easier to log into then my bank (which is beginning to irk by getting more complicated every six months).
http://annaea.wordpress.com/ Anna

NetFlix isn’t dead as long as non-techie types — like me – find it easy and convenient to use and understand. I don’t even know what this p2p is, but it sounds like it involves downloading things, which is a pain to do.

NetFlix is more convenient then dealing with trying to get my six year old in and out of a video store sans temper tantrum, has more variety then the video place, and is easier to log into then my bank (which is beginning to irk by getting more complicated every six months).
JS

I don’t see how could this be considered a threat, to neither Netflix nor Blockbuster. Don’t you think that Adobe/Verisign is making rather a technology that content providers could choose to deliver their movies through? This is not different than Netflix using USPS to deliver its movies, or using a Web server to create the interface for their customers to manage their queues. I don’t think that neither Adobe, nor Verisign, are going to start buying content (is not in their business line), but they are rather creating yet another technology for content providers to use (YouTube, VEOH, cinemanow), and Netflix should be announcing their on-line delivery solution on their earnings’ call (at least that’s what they said in their email). So, if Netflix dies, it will not be because Adobe and Verisign are coming out with new technology. Did either DIVX or XVID kill Netflix or Block Buster, how about TIVO? I don’t think they did, nor they will, you see, I don’t perceive Adobe/Verisign’s new technology as competitive and threatening, but rather enabling and beneficial.

And just to answer the question to your statement: What may kill Netflix? Perhaps large content owners like Time Warner or Disney-Apple, just to mention a few. But, not even these will kill Netflix, most of the TV consumers may be signed-off from Netflix by the new IPTV (considering that Netflix does not come up with a compelling and competitive IPTV strategy), but you have to remember that there are lots of other content that you can’t get from your TimeWarner, CableVision, LibertyMedia…, most likely because the majority of the population care little about, but it remains being a large market: IFC Films, BBC, Foreign films, Animation, Documentaries, Series (Are U being served, All creature great and small, Upstairs Downstairs…) So, you see, until the entire market can be fully satisfied by a single entity… Netflix may still have a while to live – don’t you think?

One more thing, most of the people are not very much technically savvy, and many others are probably never to become one – just like many people don’t know how to cook, nor sew, nor brew their own beer, technology is not different, what may seem to you trivial is not for the most part of the population. There are certain qualities that we are all born with: feeling sad, happy, aging, greed, malice, kindness… but technology is a skill (at times). I don’t think, many are ready for plugging Laptops, Desktop, iPods, iPhones, and other devices to their TVs – make it simpler – make it an appliance, and not another application within the same appliance (PCs are just too generic).

I agree that Netflix is not trying hard enough – and they are slacking in their growth strategies – but I think they have a better chance than Block Buster, and keep in mind that for movies on line you need to consider: bandwidth will be vital (realtime .vs. download), bitrate (quality .vs. speed). Many people have online access, but not many have nice bandwidth. With the Internet growing and bandwidth being killed (remember that the US Internet backbone is not as good as the ones in Asia – they have a much better chance of sustaining traffic strain), there is the possibility that movies online may not be as real as one thought, for now. Let’s see if Verizon finishes, and is willing to share – I don’t think they will give the $10 billion investment to the public as charity, do you?

And on, and on, and on – sorry for the lengthy posting, but we could go at it forever.

JS
JS

I don’t see how could this be considered a threat, to neither Netflix nor Blockbuster. Don’t you think that Adobe/Verisign is making rather a technology that content providers could choose to deliver their movies through? This is not different than Netflix using USPS to deliver its movies, or using a Web server to create the interface for their customers to manage their queues. I don’t think that neither Adobe, nor Verisign, are going to start buying content (is not in their business line), but they are rather creating yet another technology for content providers to use (YouTube, VEOH, cinemanow), and Netflix should be announcing their on-line delivery solution on their earnings’ call (at least that’s what they said in their email). So, if Netflix dies, it will not be because Adobe and Verisign are coming out with new technology. Did either DIVX or XVID kill Netflix or Block Buster, how about TIVO? I don’t think they did, nor they will, you see, I don’t perceive Adobe/Verisign’s new technology as competitive and threatening, but rather enabling and beneficial.

And just to answer the question to your statement: What may kill Netflix? Perhaps large content owners like Time Warner or Disney-Apple, just to mention a few. But, not even these will kill Netflix, most of the TV consumers may be signed-off from Netflix by the new IPTV (considering that Netflix does not come up with a compelling and competitive IPTV strategy), but you have to remember that there are lots of other content that you can’t get from your TimeWarner, CableVision, LibertyMedia…, most likely because the majority of the population care little about, but it remains being a large market: IFC Films, BBC, Foreign films, Animation, Documentaries, Series (Are U being served, All creature great and small, Upstairs Downstairs…) So, you see, until the entire market can be fully satisfied by a single entity… Netflix may still have a while to live – don’t you think?

One more thing, most of the people are not very much technically savvy, and many others are probably never to become one – just like many people don’t know how to cook, nor sew, nor brew their own beer, technology is not different, what may seem to you trivial is not for the most part of the population. There are certain qualities that we are all born with: feeling sad, happy, aging, greed, malice, kindness… but technology is a skill (at times). I don’t think, many are ready for plugging Laptops, Desktop, iPods, iPhones, and other devices to their TVs – make it simpler – make it an appliance, and not another application within the same appliance (PCs are just too generic).

I agree that Netflix is not trying hard enough – and they are slacking in their growth strategies – but I think they have a better chance than Block Buster, and keep in mind that for movies on line you need to consider: bandwidth will be vital (realtime .vs. download), bitrate (quality .vs. speed). Many people have online access, but not many have nice bandwidth. With the Internet growing and bandwidth being killed (remember that the US Internet backbone is not as good as the ones in Asia – they have a much better chance of sustaining traffic strain), there is the possibility that movies online may not be as real as one thought, for now. Let’s see if Verizon finishes, and is willing to share – I don’t think they will give the $10 billion investment to the public as charity, do you?

And on, and on, and on – sorry for the lengthy posting, but we could go at it forever.

JS
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Kutulhu

You may not want to walk into a Blockbuster, but there are several independent video stores that have 1,000s of titles you will never see on Netflix, and arguably many more you will never see on any peer to peer system.
Kutulhu

You may not want to walk into a Blockbuster, but there are several independent video stores that have 1,000s of titles you will never see on Netflix, and arguably many more you will never see on any peer to peer system.
Kutulhu

You may not want to walk into a Blockbuster, but there are several independent video stores that have 1,000s of titles you will never see on Netflix, and arguably many more you will never see on any peer to peer system.
Michael

I will stick with Netflix. Why? Because Blockbuster has always had the worst low class movie selections, and Netflix has always had the best. Netflix’ rating system works very well. I just cancelled my Verizon account all together because I wanted to keep my comcast email account and the high-speed, phone, cable bundle from Comcast made financial sense.
Michael

I will stick with Netflix. Why? Because Blockbuster has always had the worst low class movie selections, and Netflix has always had the best. Netflix’ rating system works very well. I just cancelled my Verizon account all together because I wanted to keep my comcast email account and the high-speed, phone, cable bundle from Comcast made financial sense.
Michael

I will stick with Netflix. Why? Because Blockbuster has always had the worst low class movie selections, and Netflix has always had the best. Netflix’ rating system works very well. I just cancelled my Verizon account all together because I wanted to keep my comcast email account and the high-speed, phone, cable bundle from Comcast made financial sense.
http://podslug.com/blog Erik Herz

As usual Mark Cuban has some critical thoughts on the matter and has started a good conversation about this on his blog: http://www.blogmaverick.com/2007/01/11/a-question-about-p2p-technologies/
http://podslug.com/blog Erik Herz

As usual Mark Cuban has some critical thoughts on the matter and has started a good conversation about this on his blog: http://www.blogmaverick.com/2007/01/11/a-question-about-p2p-technologies/
http://markdaycomedy.wordpress.com/ mark day

I would love to believe that Netfix signed their own death warrant when they started choking the accounts of the high-volume users who evangelized the service to their friends and coworkers. That was a cruddy move, regardless of how much their power-users were costing them. Although, in truth, I can’t really muster the energy to get get annoyed at them these days. And at the end of the day I like paying a flat fee for movies that I rip n’ return. The one thing that keeps me with Netflix is the fact that I don’t have to decide, disc by disc, movie by movie, whether I want to pay for them.

Anyway, if Netflix goes under, how else is the President going to keep up with the nation’s viewing habits?

http://markdaycomedy.wordpress.com/2006/10/20/george-bush-addresses-recent-tragic-events/
http://markdaycomedy.wordpress.com/ mark day

I would love to believe that Netfix signed their own death warrant when they started choking the accounts of the high-volume users who evangelized the service to their friends and coworkers. That was a cruddy move, regardless of how much their power-users were costing them. Although, in truth, I can’t really muster the energy to get get annoyed at them these days. And at the end of the day I like paying a flat fee for movies that I rip n’ return. The one thing that keeps me with Netflix is the fact that I don’t have to decide, disc by disc, movie by movie, whether I want to pay for them.

Anyway, if Netflix goes under, how else is the President going to keep up with the nation’s viewing habits?

http://markdaycomedy.wordpress.com/2006/10/20/george-bush-addresses-recent-tragic-events/
http://markdaycomedy.wordpress.com/ mark day

I would love to believe that Netfix signed their own death warrant when they started choking the accounts of the high-volume users who evangelized the service to their friends and coworkers. That was a cruddy move, regardless of how much their power-users were costing them. Although, in truth, I can’t really muster the energy to get get annoyed at them these days. And at the end of the day I like paying a flat fee for movies that I rip n’ return. The one thing that keeps me with Netflix is the fact that I don’t have to decide, disc by disc, movie by movie, whether I want to pay for them.

Anyway, if Netflix goes under, how else is the President going to keep up with the nation’s viewing habits?

http://markdaycomedy.wordpress.com/2006/10/20/george-bush-addresses-recent-tragic-events/
http://podslug.com/blog Erik Herz

As usual Mark Cuban has some critical thoughts on the matter and has started a good conversation about this on his blog: http://www.blogmaverick.com/2007/01/11/a-question-about-p2p-technologies/
http://www.trulyequal.com/ Truly Equal

Of course this sounds great… but Netflix’s selection is superb, and there is just something about receiving something in your mailbox that can’t be replaced.

On the other hand, does everyone in the U.S. has access to broadband cable? By this I mean both the service and the $$$ to pay for it. For instance, in my area there is no broadband, but there is hi-speed wireless internet. Not everyone would like to buy a high-end computer with a kick-ass internet connection to watch a movie. I’m a damn geek and proud of it, and have a very cool Toshiba laptop but I’m also based in reality, meaning that most people would rather just pick a movie at a store. They do what is most convenient for them.

That being said, these folks will still make a truckload of money!
http://www.trulyequal.com/ Truly Equal

Of course this sounds great… but Netflix’s selection is superb, and there is just something about receiving something in your mailbox that can’t be replaced.

On the other hand, does everyone in the U.S. has access to broadband cable? By this I mean both the service and the $$$ to pay for it. For instance, in my area there is no broadband, but there is hi-speed wireless internet. Not everyone would like to buy a high-end computer with a kick-ass internet connection to watch a movie. I’m a damn geek and proud of it, and have a very cool Toshiba laptop but I’m also based in reality, meaning that most people would rather just pick a movie at a store. They do what is most convenient for them.

That being said, these folks will still make a truckload of money!
http://www.trulyequal.com Truly Equal

Of course this sounds great… but Netflix’s selection is superb, and there is just something about receiving something in your mailbox that can’t be replaced.

On the other hand, does everyone in the U.S. has access to broadband cable? By this I mean both the service and the $$$ to pay for it. For instance, in my area there is no broadband, but there is hi-speed wireless internet. Not everyone would like to buy a high-end computer with a kick-ass internet connection to watch a movie. I’m a damn geek and proud of it, and have a very cool Toshiba laptop but I’m also based in reality, meaning that most people would rather just pick a movie at a store. They do what is most convenient for them.

That being said, these folks will still make a truckload of money!
http://mctechtalk.wordpress.com/ mcstylin

I agree with post 77. Netflix is only dead many many years into the future, but not immediately. Not everyone has the technology to handle movie downloads, burn them or even watch them on their computers. In addition, there’s always that segment of the population who wants to stay with their current technology; whether it be a VCR or DVD player. Its what makes them feel comfortable. It remains to be seen how many years into the future it takes for Netflix or Blockbuster to die out.
http://mctechtalk.wordpress.com/ mcstylin

I agree with post 77. Netflix is only dead many many years into the future, but not immediately. Not everyone has the technology to handle movie downloads, burn them or even watch them on their computers. In addition, there’s always that segment of the population who wants to stay with their current technology; whether it be a VCR or DVD player. Its what makes them feel comfortable. It remains to be seen how many years into the future it takes for Netflix or Blockbuster to die out.
http://mctechtalk.wordpress.com/ mcstylin

I agree with post 77. Netflix is only dead many many years into the future, but not immediately. Not everyone has the technology to handle movie downloads, burn them or even watch them on their computers. In addition, there’s always that segment of the population who wants to stay with their current technology; whether it be a VCR or DVD player. Its what makes them feel comfortable. It remains to be seen how many years into the future it takes for Netflix or Blockbuster to die out.
http://stuartdelony.wordpress.com/ stuartdelony

pretty sweet stuff (though I’m not canceling my beloved netflix anytime soon!)
http://stuartdelony.wordpress.com/ stuartdelony

pretty sweet stuff (though I’m not canceling my beloved netflix anytime soon!)
http://stuartdelony.wordpress.com/ stuartdelony

pretty sweet stuff (though I’m not canceling my beloved netflix anytime soon!)
http://AsbestosDen.org/ Shawn Levasseur

You never know… …Netflix may go with digital distribution themselves. It’s not like they have a big investment in brick and mortar outlets to justify like Blockbuster does.
http://AsbestosDen.org/ Shawn Levasseur

You never know… …Netflix may go with digital distribution themselves. It’s not like they have a big investment in brick and mortar outlets to justify like Blockbuster does.
http://AsbestosDen.org Shawn Levasseur

You never know… …Netflix may go with digital distribution themselves. It’s not like they have a big investment in brick and mortar outlets to justify like Blockbuster does.
http://emonome.wordpress.com/ emon

I don’t know about anyone else, but I’m having fun reading the ping pong between Scoble and Goebbels.
http://emonome.wordpress.com/ emon

I don’t know about anyone else, but I’m having fun reading the ping pong between Scoble and Goebbels.
http://emonome.wordpress.com/ emon

I don’t know about anyone else, but I’m having fun reading the ping pong between Scoble and Goebbels.
http://organicvinyl.wordpress.com/ organicvinyl

Copyrighted content distribute over P2P is enticing, but I don’t count Netflix out yet.

1. “To Netflix” is (almost) a verb like “to google.” It is too well branded and marketed to be killed off quickly.

2. Apple and Netflix share a physical proximity and former employees. I can see the Netflix rental and feedback system augmenting itunes.

3. Netflix already has the rights to distribute tons of movies. The movie studios trust and have been making money from them. If they can provide a solid digital distribution method on top of their current service, they’ll be good to go.

4. More than likely, they will be bought or partner with a company like Apple or Google. I predict further and further consolidation and partnership of media type companies. Content is becoming more personalized and focused on niche markets, but a decent digital delivery system once it is established will be a commodity.

Just my 4 cents…
http://organicvinyl.wordpress.com/ organicvinyl

Copyrighted content distribute over P2P is enticing, but I don’t count Netflix out yet.

1. “To Netflix” is (almost) a verb like “to google.” It is too well branded and marketed to be killed off quickly.

2. Apple and Netflix share a physical proximity and former employees. I can see the Netflix rental and feedback system augmenting itunes.

3. Netflix already has the rights to distribute tons of movies. The movie studios trust and have been making money from them. If they can provide a solid digital distribution method on top of their current service, they’ll be good to go.

4. More than likely, they will be bought or partner with a company like Apple or Google. I predict further and further consolidation and partnership of media type companies. Content is becoming more personalized and focused on niche markets, but a decent digital delivery system once it is established will be a commodity.

Just my 4 cents…
http://organicvinyl.wordpress.com/ organicvinyl

Copyrighted content distribute over P2P is enticing, but I don’t count Netflix out yet.

1. “To Netflix” is (almost) a verb like “to google.” It is too well branded and marketed to be killed off quickly.

2. Apple and Netflix share a physical proximity and former employees. I can see the Netflix rental and feedback system augmenting itunes.

3. Netflix already has the rights to distribute tons of movies. The movie studios trust and have been making money from them. If they can provide a solid digital distribution method on top of their current service, they’ll be good to go.

4. More than likely, they will be bought or partner with a company like Apple or Google. I predict further and further consolidation and partnership of media type companies. Content is becoming more personalized and focused on niche markets, but a decent digital delivery system once it is established will be a commodity.

Just my 4 cents…
http://frem.wordpress.com/ James

Streaming downloadbale movies is, in fact, the future. But is the future now?

A lot of people are old fasioned, and it’s simply easier for them to just continue to use Netflix. Not to mention that this thing appears to be currently restricted to computers, though I’m sure some sort of set-top box will pop up eventually.

I was over at a friend’s house this past summer, and he demoed how he could instantly stream the LotR movies from a video-on-demand service from his cable network. How is this better then that? Because it’s HD, something most people still don’t have?
http://frem.wordpress.com/ James

Streaming downloadbale movies is, in fact, the future. But is the future now?

A lot of people are old fasioned, and it’s simply easier for them to just continue to use Netflix. Not to mention that this thing appears to be currently restricted to computers, though I’m sure some sort of set-top box will pop up eventually.

I was over at a friend’s house this past summer, and he demoed how he could instantly stream the LotR movies from a video-on-demand service from his cable network. How is this better then that? Because it’s HD, something most people still don’t have?

Netflix is dead

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