Netflix

Interesting:

Netflix’s big problem, it seems to me, is that it can’t afford the content that its subscribers most want to watch. It could try to buy streaming rights to every major Hollywood blockbuster in history — but doing so would cost hundreds of billions of dollars, and could never be recouped with $7.99 monthly fees. What’s more, the studios can watch the Netflix share price as easily as anybody else, and when they see it ending 2013 at $360 a share, valuing the company at well over $20 billion, that’s their sign to start raising rates sharply during the next round of negotiations. Which in turn helps explain why Netflix is losing so many great movies.

Because they can’t be our go-to for the latest and/or greatest movies, their strategy needs to be different. Good original content. Making it easier to find older/niche-y movies.

Without shoving it down our throats, it’s already working. I already think of Netflix as the place to go watch older movies, documentaries, indie movies, etc. And iTunes as where I snag the latest releases.

Comments

  1. Gray says:

    I completely agree. I don’t think I’ve ever even thought of going to Netflix for a new movie, I didn’t even know that was a possibility.

  2. I agree, it never has been a place for new movies or programs. It’s a shame really. I think I’d happily pay around the £20 / £30 mark a month for the service if it brought new films to it’s library like iTunes.

    I recently made the decision to cancel my subscription with Netflix because of this reason, I’ve mentioned exactly why I made that decision in my latest blog post, http://blog.chriswatterston.com/life/setting-5-goals-for-2014/.

  3. Vicky says:

    Agreed. I’ve kept my Netflix subscription going because it’s so inexpensive, but I do get frustrated that 9 times out of 10 the film I want to watch isn’t on there. That said, I do occasionally stumble across an absolute gem, which justifies the cost. My issue isn’t so much the lack of new releases, it’s that the service is so user-unfriendly and missing key features that would improve the experience ten-fold, like being able to save a movie to watch later. It puts me off using it.

  4. Jeff says:

    Interesting – I wonder if their unfolding brand as “the place to go to watch older movies & documentaries” was by any effort/change on their part, or (as many brands go) was defined by the audience and the restrictions Netflix faces.

  5. I must be the opposite. I’m thrilled with the Netflix catalog as it currently stands and would rush to unsubscribe if they increased prices in order to provide so-called blockbuster movies.

  6. Ivan Suro says:

    I have Netflix because I don’t want to pay $80.00 a month for cable tv. I basically spend all day at work so I don’t really have much time to watch television. I would gladly pay $20 a month for a service that would allow streaming of the latest releases. That being said I am pretty happy with what Netflix offers right now in terms of old tv series like X-Files, Twilight Zone and several others. If I want to watch something new I probably have to rent of buy it from itunes.

  7. Alex says:

    I like netflix. I so peaty good documentary over there. But I would like to see some more new movies and tv series.