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Netflix Q1 Results - Loss of another 1 million Disc Subs

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Old 04-26-2012, 06:35 PM   #136
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According to the International Telecommunications Union (ITU), the average penetration rate of fixed broadband services in Latin America and the Caribbean is below 5 percent. In contrast, Korea has a 36.6 percent penetration rate, while in the United States it is 26 percent.
http://www.iadb.org/en/news/announce...sage,9753.html
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Old 05-31-2012, 12:33 AM   #137
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Sarandos: Netflix Welcomes Extended Disc Embargoes

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30 May, 2012
By: Erik Gruenwedel

Chief content officer says Netflix isn’t killing off its disc rental business, but merely reflecting generational changes in media consumption


Studio efforts to maintain and/or lengthen new-release access of movie discs to Netflix are welcomed and encouraged, Ted Sarandos, chief content officer of the subscription video-on-demand service, told an investor group.

Speaking May 30 to the second annual Nomura U.S. Media, Cable & Telecom Summit in New York, Sarandos said that in an effort to secure long-term working relationships with studios, he is embracing ongoing 28-day delays on new releases with some studios and a 56-day delay with Warner Home Video.

“I believe that is good for the overall ecosystem,” Sarandos said, adding that consumers fixated on new releases most likely aren’t Netflix subscribers. “This way we stay out of the path of the first 28 days of [higher margin] VOD transactions or DVD sales. And that is a good thing because it supports the overall creation of content.”

The CCO dismissed notions Netflix is intentionally downsizing its pioneering by-mail disc rental business with streaming. Indeed, physical rentals continue to drive the strongest margins at Netflix, with hybrid streaming/disc rental subs generating the service’s lone operating income this year.

“It’s not to say the DVD business is dead or necessarily on a glide-path to death,” Sarandos said. “While we do think there is a lack of physical rental [options], the growth in click-and-watch options is really what we have our eye on.”

He said there continues to evolve a generational shift among movie renters, with younger viewers opting for streaming, while older viewers prefer disc rentals and sellthrough.

“My teenage kids will probably never buy or rent a physical disc, but we have people like me who still buy a CD at Starbucks,” Sarandos said.
http://www.homemediamagazine.com/net...mbargoes-27378
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Old 05-31-2012, 07:20 AM   #138
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28, 56, it doesn't really matter to me as I will wait and pay $1.40 versus $20 any day. I say let the studios continue to shoot themselves in the foot.
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Old 05-31-2012, 07:41 AM   #139
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Netflix welcomes the embargos because it hurts Redbox and the remaining B&Ms more than it hurts them, and it also encourages OD renters to stream more, which is their end game.
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Old 05-31-2012, 01:51 PM   #140
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Well Netflix should care more about their lucrative optical business:

http://www.pcworld.com/article/25642..._xbox_360.html

Amazon streaming is now on the Xbox 360 and will be coming to more devices I suspect as Amazon continues to ramp up their service. As a Prime member I am basically gettting it for free and have dumped Netflix streaming and not really looked back since it was mostly the kids that use it. I also like that many Blu-Ray's I purchase offer free instant streaming at Amazon before the disc even ships.

There are also rumors that Netlix may lose Epix (which makes up another huge chunk of their content) in a bidding war with Apple.

If that happens, look for Netflix stock to plummet. I really wish Netflix would put more effort into both the streaming and disc services. I have been giving my money more and more to Redbox.
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Old 05-31-2012, 02:57 PM   #141
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Originally Posted by ack_bak View Post
Well Netflix should care more about their lucrative optical business:

http://www.pcworld.com/article/25642..._xbox_360.html

Amazon streaming is now on the Xbox 360 and will be coming to more devices I suspect as Amazon continues to ramp up their service. As a Prime member I am basically gettting it for free and have dumped Netflix streaming and not really looked back since it was mostly the kids that use it. I also like that many Blu-Ray's I purchase offer free instant streaming at Amazon before the disc even ships.

There are also rumors that Netlix may lose Epix (which makes up another huge chunk of their content) in a bidding war with Apple.

If that happens, look for Netflix stock to plummet. I really wish Netflix would put more effort into both the streaming and disc services. I have been giving my money more and more to Redbox.
I have no intention of going back to Netflix streaming either. I do like Amazon's streaming service through Prime, but I have a problem with a lot of their movies being in 1.33:1 and 1.78:1 when their OAR's are wider. It is certainly a nice addition to my Kindle Fire though.
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Old 05-31-2012, 05:00 PM   #142
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I will never leave netflix. Cheap and convienent.
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Old 05-31-2012, 05:41 PM   #143
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Originally Posted by ack_bak View Post
Well Netflix should care more about their lucrative optical business:

http://www.pcworld.com/article/25642..._xbox_360.html

Amazon streaming is now on the Xbox 360 and will be coming to more devices I suspect as Amazon continues to ramp up their service. As a Prime member I am basically gettting it for free and have dumped Netflix streaming and not really looked back since it was mostly the kids that use it. I also like that many Blu-Ray's I purchase offer free instant streaming at Amazon before the disc even ships.

There are also rumors that Netlix may lose Epix (which makes up another huge chunk of their content) in a bidding war with Apple.

If that happens, look for Netflix stock to plummet. I really wish Netflix would put more effort into both the streaming and disc services. I have been giving my money more and more to Redbox.
I agree that Netflix should taking care of the more its cash cow. Biting the hand that's feeding them will end up biting them in the long run I'm afraid. I think they may have unrealistic expectations as to the extent of the streaming market they will ultimately control, not to mention the profitability of such a competitive and limited market.
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Old 05-31-2012, 11:47 PM   #144
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Quote:
Originally Posted by ack_bak View Post
Well Netflix should care more about their lucrative optical business:

http://www.pcworld.com/article/25642..._xbox_360.html

Amazon streaming is now on the Xbox 360 and will be coming to more devices I suspect as Amazon continues to ramp up their service. As a Prime member I am basically gettting it for free and have dumped Netflix streaming and not really looked back since it was mostly the kids that use it. I also like that many Blu-Ray's I purchase offer free instant streaming at Amazon before the disc even ships.

There are also rumors that Netlix may lose Epix (which makes up another huge chunk of their content) in a bidding war with Apple.

If that happens, look for Netflix stock to plummet. I really wish Netflix would put more effort into both the streaming and disc services. I have been giving my money more and more to Redbox.
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Old 05-31-2012, 11:48 PM   #145
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I agree that Netflix should taking care of the more its cash cow. Biting the hand that's feeding them will end up biting them in the long run I'm afraid. I think they may have unrealistic expectations as to the extent of the streaming market they will ultimately control, not to mention the profitability of such a competitive and limited market.
Limited Market? They already have over 23 million streaming subs.
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Old 06-01-2012, 12:01 AM   #146
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Limited Market? They already have over 23 million streaming subs.
Unless Netflix can keep their contracts with the providers going I expect that number to plateau in the near future unless they somehow increase content and/or interface quality.
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Old 06-01-2012, 02:20 AM   #147
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Unless Netflix can keep their contracts with the providers going I expect that number to plateau in the near future unless they somehow increase content and/or interface quality.
Who besides Starz has not renewed a contract with Netflix? They have also signed new deals with Dreamworks Animation and The Weinstein Co.
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Old 06-01-2012, 06:10 AM   #148
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Who besides Starz has not renewed a contract with Netflix? They have also signed new deals with Dreamworks Animation and The Weinstein Co.
Isn't their Epix contract about to expire?
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Old 06-01-2012, 12:19 PM   #149
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Isn't their Epix contract about to expire?
Why do you think it will not be renewed?
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Old 06-01-2012, 02:58 PM   #150
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Why do you think it will not be renewed?
http://www.huffingtonpost.com/2012/0...n_1460239.html

Lots of rumors in April that Apple wants an exclusive contract with Epix. Epix deal with Netflix is up in September and we both know who has more cash to bring to the table for this deal. If Apple wants it, it will be theirs. But at any rate it is clear that Netflix is going to have to come to the table with some serious cash if they want to keep Epix content. And this is the real issue for them, as you yourself has pointed out, streaming is not a fixed cost. Every couple of years they will be renegotiating content rights deals and with Apple and Amazon in the mix, well, Netflix is going to have some very tough competition who both have one huge advantage. Cash. Something Netflix has little of.

Netflix customers are not locked into long term contracts and can cancel or suspend their service as they see fit. Major plays by Amazon and Apple could easily sway those 23 million customers to take their business elsewhere. Consumers are much more about what are you doing for me now vs what you did for me in the past.
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