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Netflix Price Increase


Egret
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One thing I never understood was why couldn't netflix stream even the new releases? Once they had the physical dvd they could rent it out all they want as long as it was just one at a time. Why couldn't they do that with the streaming? Buy 100,000 "licenses" (or just buy the dvds and then have a bonfire in the parking lot after making a copy) burn a copy and make sure they only stream the amount of licenses they have on hand. Allow quarterly "audits" to keep themselves out of court and voila! Streaming new releases!

 

They can currently keep track of what is being watched and where people left off so they should be able to keep track of licenses without too much of a hassle.

I company named Zediva tried something similar. It didn't work out.

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One thing I never understood was why couldn't netflix stream even the new releases? Once they had the physical dvd they could rent it out all they want as long as it was just one at a time. Why couldn't they do that with the streaming? Buy 100,000 "licenses" (or just buy the dvds and then have a bonfire in the parking lot after making a copy) burn a copy and make sure they only stream the amount of licenses they have on hand. Allow quarterly "audits" to keep themselves out of court and voila! Streaming new releases!

 

They can currently keep track of what is being watched and where people left off so they should be able to keep track of licenses without too much of a hassle.

 

 

The studios won't allow it. The new releaes can't be streamed until the DVD has been released for some amount of time (varies by studio agreement) to allow the studio time to get DVD sales and in some cases PPV/OnDemand revenue. The studios would completely cannibalize their DVD sales revenue if they allowed films to be streamed through services immediately. I do believe amazon has a service where you can stream new releases right away, but it is essentially a PPV service where you pay per movie and have access for a limited period of time, just like PPV through your cable/satellite provider.

 

Now, I could see some studios going to a model where they set up a streaming service for just their library of films for a set monthly fee.

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I don't see why they would care if they're still getting paid.

The problem, I think, is that streaming new releases won't fit into Netflix's per-month pricing model. Only PPV can fit, hence Hulu and similar sites can stream stuff much earlier than Netflix.

Edited by Ursa Majoris
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The fees they pay for content seem to be astronomical. They recently paid between $75-$100 million for the rights to stream Mad Men. That takes a ton of subscriber fees alone to pay for. No wonder most of their streaming content is old and second rate. :wacko:

Edited by CaP'N GRuNGe
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The fees they pay for content seem to be astronomical. They recently paid between $75-$100 million for the rights to stream Mad Men. That takes a ton of subscriber fees alone to pay for. No wonder most of their streaming content is old and second rate. :wacko:

But heaven forbid someone pay an extra $5 a month for better content.

 

Netflix is right with regards to it vision for the future. But whoever is in charge of PR should be fired. And what the hell is "quickster" supposed to sound like? Terrible rebranding.

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Because customers like Best Buy, Target, Amazon and Wal-Mart would mind..... a lot.

 

they wouldn't care if they were getting more money selling the streaming content to netflix, amazon, etc. it's not a matter of if they'll move to an effective pricing model on high-demand streaming content, but when.

 

maybe netflix needs to come up with a model where they charge a couple bucks for new releases or something, but they have GOT to improve their streaming content library if they are going to have any future at all. how can anyone get excited about a service that gives you some crappy movies, some old reruns, and a handful of kids shows for 8 bucks a month :wacko:

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they wouldn't care if they were getting more money selling the streaming content to netflix, amazon, etc. it's not a matter of if they'll move to an effective pricing model on high-demand streaming content, but when.

 

maybe netflix needs to come up with a model where they charge a couple bucks for new releases or something, but they have GOT to improve their streaming content library if they are going to have any future at all. how can anyone get excited about a service that gives you some crappy movies, some old reruns, and a handful of kids shows for 8 bucks a month :wacko:

Hulu charges $10 - $11 per movie. Netflix would have to charge in the hundreds per month to make new releases work under a monthly charge scheme.

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  • 3 weeks later...
LOS GATOS, Calif. – Netflix has abandoned its unpopular plan to spin off its DVD-by-mail service and rename it Qwikster, saying it will continue to offer both services through its flagship web site.

 

The movie renter told customers in an email and blog post on Monday that they will continue using "one web site, one account and one password" under the Netflix brand for both streaming and DVD-by-mail services.

 

"It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs," wrote CEO Reed Hastings on the company blog.

 

"This means no change: one website, one account, one password… in other words, no Qwikster," Hastings wrote.

 

Move over "New Coke".....

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