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Netflix CEO says streaming video gaining on old-fashioned DVDs
Just what we thought. Video streaming is taking over, as evidenced by Netflix CEO Reed Hastings noting the company's "Watch Instantly" service gaining ground on Netflix movies mailed in those telltale red envelopes. Hastings says Netflix subscribers who use his streaming video service are renting substantially fewer DVDs, calling it a "substitution effect."
Even though there are only so many hours in the day to watch movies, this surge in streaming video viewing is particularly remarkable when you consider the notoriously low quality of the Netflix Watch Instantly selections, peppered with moldy oldies and titles you wouldn't foist on your worst enemy.
That'll change soon enough. Netflix is getting to be so profitable (with profits skyrocketing a recession-defying 45% in last year's fourth quarter), the company's gaining more clout over Hollywood studios, and we predict first-run titles (in glorious HD) populating Netflix Watch Instantly before too long. Also, people love instant gratification, and are inherently lazy. Why walk to the mailbox when you can Watch Instantly?
Engadget HD, via Ars Technica
By Skoal at 5:30 PM ON 01/28/09
If the whole of Netflix moves to streaming what will happen
to the employee in the picture? Can you say unemployment?
Ya, just so you don't have to wait a day or two on your next
movie. How's it make you feel to put someone out of a job?
By La-ZViewer at 6:54 PM ON 01/28/09
People have been losing jobs thanks to progress and technology for a long, long time now, Skoal. If we prevented it to keep people employed, where would we be? Not anyplace I'd want to live.
By Tom Garner at 7:15 PM ON 01/28/09
So when ppl start "hogging" bandwidth watching movies streamed from NetFlix what will happen once ComCast & AT&T & CABLE ONE, start throttling their users connection. Better yet, little Susan watches three movies, dad watches a couple, Johnny watches a coup and mom watches a couple and then their ISP says Hey, your HOGGING the bandwidth, what are you doing?
I REALLY think that if ISP's start charging for excessive bandwidth usage and/or usage as defined by the ISP, then NETFLIX will at first have a good stream but them once more/more/more ISP jump on the bandwagon their revenue by start to slump...
But then again, maybe not... I just don't see this streaming idea lasting once ISP's cap usage...
By DavidKamatoy at 3:39 AM ON 01/29/09
Well we definitely saw this coming. It's just interesting to see it in print. I feel old, " I remember VHS tapes, I remember Beta. Beta was a good tape... AAAAAHHHH my hip."
wwww.DavidKamatoy.com
By repinsnug at 12:25 PM ON 01/29/09
@skoal
Well thats what happens when you get a job that is unskilled and can be easily replaced. I suppose you feel bad for all the type writer makers that are unemployed because of you and your computer?
By Traveler at 12:25 PM ON 01/29/09
I use the ROKU devise and mostly like it. But there is still a paucity of good titles (only about a 12th of my que is available) and there are none of the extras you find on even the most basic disks. Also FF>> doesn't work very smoothly.
By fullofshih at 6:16 PM ON 01/29/09
@TOM
Actually, Comcast just got in trouble with the FCC for throttling bandwith usage for people using torrent applications. I don't think they will be doing that again anytime soon.
Now charging more for internet usage, that's another story.
By roshinobi at 10:17 AM ON 01/30/09
Whoa, so that's how they do it! I must say, I imagined it was robots.
I don't think they'll be losing their jobs anytime soon though. Despite streaming becoming more popular and causing customers to rent fewer dvds/blurays as individuals, you have to consider how much more popular netflix is becoming. There will be many many more customers, and even though each will individually rent fewer dvds as netflix customers used to, on the whole dvd rentals will probably increase. I'm still disappointed that they arent robots though...
By YOSHIMITSU at 8:04 AM ON 01/31/09
Netflix streaming is the best thing to happen to watching movies (and TV shows) since the advent of cable television. Except Netflix instant streaming is better than Cable TV. You can watch almost anything you want, anytime, unlimited compared to Cable TV where you only watch what is prioritized linear programming for the masses. See the difference people? Digital distribution is the future.
By roshinobi at 3:13 AM ON 02/01/09
Gotta agree. I took my cable box back to comcast the day Netflix showed up on Xbox 360. Cable can't even come close to competing with $9 a month for what Netflix offers.
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roshinobi:
Gotta agree. I took my cable box back to comcast the day Netflix showed up on Xbox 360. Cable can't even come close...More »