There was a lot of buzz lately about Netflix's Reed Hastings (CEO) and Barry McCarthy's (CFO) comments about a streaming-only plan, but whoever is running Netflix's Twitter account wants to reassure customers that DVDs are here for a while:
The reality is that only about 12% of Netflix's DVD inventory is available for streaming, so it'll be a while (probably years) before it gets anywhere near the 100,000+ DVD titles. The hybrid DVD and streaming approach gives customers the best of both worlds while Netflix gains customers and market share in anticipation of the industry transition to streaming.
I still look forward to the day when every movie ever made is available immediately on any device. Sigh.
No, the "movie part" of 12% of the DVDs are available online. Additional content is not yet available online for any DVD. The streaming business has reduced DVD content to the equivalent of VHS content.
They have a very long way to go before they get to the content level of the DVD service.
Posted by: Tino | February 27, 2009 at 08:50 AM
Yes, didn't Reed say they would need many more DVD subscribers before they reach critical mass, to be able to negotiate the price of content the way the networks do?
Posted by: Becky | February 27, 2009 at 08:50 AM
I didn't think they were abandoning DVD rentals... but I AM concerned that having a streaming-only plan will give them an excuse to boost prices for all their plans at once.
If they want to do streaming only, then it should be about $7.49 a month. If they settle on something closer to $10 a month, that means the other plans will all go up in price, otherwise streaming only doesn't make sense.
Posted by: ZeroCorpse | February 27, 2009 at 11:43 AM
"but I AM concerned that having a streaming-only plan will give them an excuse to boost prices for all their plans at once."
Except for my $1 increase for Blu-Ray I have been paying the same price since 2004 I think. I'm expecting a increase soon. A small reasonable increase would be ok with me. Maybe $2 or $3 on my 2 at a time plan.
Posted by: banter | February 27, 2009 at 11:56 AM
When it comes to online content, Netflix is far from being the master of it's own destiny. If Netflix doesn't kowtow to the studios every minute, they can easily be cut out of negotiations for streaming content now and in the future. The content from Netflix's Red Envelope was so bad that Netflix killed the initiative of creating their own content.
A good analogy when it comes to content acquisition is Netflix being at a poker table with just a few chips while the cable companies and networks have stacks and stacks of chips in front of them. Netflix will always get outbid and forced to suckle the hind tit.
Posted by: Edward R Murrow | February 27, 2009 at 12:22 PM
People are funny when it comes to pricing. Everyone was happy when it was DVDs only, then they included free streaming, now people will complain if they want to charge for it. But of course it's coming. I would imagine they'll stay with the original pricing for DVDs only and charge extra for access to the streaming stuff. They know that at least most of the people with streaming devices will pay.
Posted by: kh | February 28, 2009 at 03:27 PM
I have an unrelated question - when I go to the Netflix site, at the top it says "Important reminder" and wants me to agree to the terms again. Does this happen for everyone, did the agreement change, or what? I notice that the agreement says that they can charge for lost discs, did it always say that?
Posted by: kh | February 28, 2009 at 03:30 PM
I don't know how I missed this, but if they get this to work, it would be very cool!
Microsoft and Blockbuster hook up to offer mobile media content
Posted by: Edward R Murrow | February 28, 2009 at 05:43 PM
I would hope they don't ever abandon discs. How many jobs would be lost if they did? geez!
plus it's going to take forever for all of their customers to jump on board the Watch instantly.
I still can't watch on my computer because I have a Power PC mac.
sure I could get a roku but do I really need to watch movies while I'm waiting for movies to come in the mail? seems a bit excessive. DVDs are just too easy
Posted by: nahdude | March 01, 2009 at 07:54 PM
To KH: The terms were rewritten. Click, read-if you care to-accept and they go away. Otherwise after the 50th time you enter the website signed in, the reminder will go away automatically.
Posted by: Fiver | March 02, 2009 at 12:33 AM
I'm still waiting for my extra $1/month Blu-ray luxury fee to have any positive benefit. The day NetFlix asks me to pony up extra $$$ to use my Roku will be the day my Roku will be available for purchase on EBay. DVD's vs. IPstreams - DVD's win every time.
Posted by: dAVe | March 02, 2009 at 11:50 AM
Funny. Companies still haven't learned yet that when they craft a press release, in this day and age, they need to sit down and think, "How can thousands of morons on the internet misinterpret this, and force us releasing an explanatory supplement that re-explains the obvious."
Posted by: Quiet_Desperation | March 02, 2009 at 02:08 PM
I dread the day that all movies become available on instant watch. When that becomes the standard, we are all going to be watching low quality compressed streaming video rather than Blu-Ray.
Posted by: John | March 02, 2009 at 09:56 PM