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Comments

Lonny

Anybody want to take bets on how big a failure Dish Networks attempt is going to be?

Tester

I agree with you Lonny. Considering that Dish has trouble staying close to DirecTV I would think it would be impossible for them to have a major impact on Netflix.

There are ways they can try. One way would be for them to tie in a subscription to Dish Network with streaming and/or movie rentals.

Even though I don't feel their chances are good I hope I am wrong. I don't want Netflix to be the only choice simply because real competition is normally good.

Robert Emmerich

Obviousman says the obvious.

"...tie in a subscription to Dish Network with streaming and/or movie rentals."

This would work. My doubt is along the lines of - aren't most satellite customers out in the sticks where they can't get broadband? (I'm asking as much as stating.)

Tester

Robert Emmerich;

DirectTV offers broadband service through HughesNet or you can get HughesNet by itself. Dish Network does not offer broadband.

I'm not sure about the demographics of satellite TV subscribers but I'm sure you could look it up.

Why the "Obviousman" remark?

Albokay

Netflix doesnt have a monopoly. They just offer a great service for a reasonable price. Something Dish will never have.

Tester

Albokay:

"They just offer a great service for a reasonable price. Something Dish will never have."

I agree with what you've said about Netflix, and while Dish doesn't have reasonable pricing that doesn't mean they aren't going to come up with something that will cut into Netflix's bottom line substantially. I don't see that happening but I also didn't see Dish Network buying Blockbuster. Maybe, just maybe, Dish does have a viable plan.

XVarX

Netflix is well ahead of Dish / Blockbuster in the game. In the DVD by mail game, probably doesn't matter how far ahead Netflix is or was, since that seems to be a dying market.

When it comes to streaming, Netflix is once again well ahead of the game here. Look at all the deals they have in place for content. Not that Dish Network / Blockbuster can't do the same thing over time. But Netflix has a huge head start, both in studio deals and marketing and use by consumers.

I think they can compete with a good business plan. But actually being on the same level may take a lot of time and willingness to keep sinking money into growing the business.

I'd just like to see Blockbuster Online get new DVDs again at the very least.

Jim

This sort of business is all about network effects and about getting large enough to generate them. Unless Dish can leverage their existing user base, they'll have a hard time even starting up. Netflix is already off and running with millions of customers and quickly increasing their lead every day.

Which isn't to say that I don't welcome some competition in this space. The current low price point won't last if Netflix becomes a complete monopoly.

Tester

"The current low price point won't last if Netflix becomes a complete monopoly."

Jim, you don't know how long I've been saying that.

I have seen posts here where some people have said they can't wait for Blockbuster to shut down. They don't seem to realize, or maybe don't care, if Netflix became the only gane in town we would probably see major price hikes.

Lonny

I agree that competition is usually good for the consumer, but there are times where competition doesn't seem to make any difference in the price we pay. Cable, Uverse, Dish, Direct Tv... They are all deliver the same content and they are all about the same price, unless of course any one of them is the only option in your area.

I believe in this case competition is only going to make subscription services like Netflix more expensive. The studios are salivating hoping Google, Amazon, and Blockbuster all get into the game in order to bid up the cost of the content they are willing to stream, while at the same time protecting the Traditional avenues for Premium content.

I personally don't think Blockbuster or Dish have the money to take on Netflix in any way shape or form. Netflix is so far ahead it is going to take a significant investment to get close.

Blockbuster does have name recognition, but is it a name synonymous with fair prices, and great customer service? Hell No! In my mind Blockbuster deserves to be right where they are! Blockbuster is paying the price (the ultimate Late Fee) for taking advantage of their customers for way too long, and those of us that are now subscribed with Netflix are NEVER going back.

Alkalitta

i dropped dish network 2 years ago after putting up with their B.S. for 12 years they can kiss my dupa...

Tester

@ Alkalitta:

It was about 2 or 3 years ago that I considered getting Dish Network. I found out right away how horrible their customer service was. I told them to forget it.

I'll never forget, after I told them never mind I was asked to hold on. I was then transferred to someone who tried to convince me to sign up. They wanted to give me the provable house and car if I would agree to sign a 2 year contract. I told that person I would not.

I ended the call by telling them that considering how bad my experience with customer service was, and they didn't have me signed, I would hate to think how I would be treated once I had a contract with them. The person I was speaking with started their spiel again and I simply hung up the telephone.

Marshall

The thing people miss here when talking about competition and pricing is that competition only works for the one being competed for. In this case competition only helps Hollywood keep the prices high.

Look at it like this

scenario a- Netflix is the only game in town. I have a movie and want to get some guaranteed revenue. I go to Netflix and get a standard fee. They keep prices down to keep their customer base happy.

scenario b- I shop my movie around to Blockbuster, Amazon Prime, Hulu Plus and Netflix. I ultimately decide on Netflix but only after they outbid the others in a lengthy and costly process. Now Netflix is forced to pay more for content and you can guess who will foot the bill.

Competition can be good. A splintered market is not. I don't want to pay more for content plus have to pay multiple parties to get said content. The market can stand Hulu and Netflix, maybe even Amazon. If anymore get in the game we'll be right back where we started.

Tester

Marshall;

What you said makes sense but you have to remember something.

If you choose Netflix based on them getting something you want, and you know that Netflix is/has raised the cost to you because of what they have gotten why would you be willing to pay the additional? You have a choice not to join, just as Netflix has a choice not to get the movie, TV series, etc.

I am sure the companies you've mentioned have people who try to determine what price is cost-effective to get a product. They crunch some numbers, figuring what they'll lose and gain as far as subscribers go; and based on what they come up with they'll either make a bid or drop out of the running.

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