greyeyed123
Auditioning
- Joined
- Sep 30, 2011
- Messages
- 5
- Real Name
- Chad
Re: Netflix, the problem IS netflix, as its business model relied far too heavily on getting streaming content for little or nothing. Netflix isn't counted out, but it won't be worth NEARLY as much as a company since studios WILL charge them more for content, or go somewhere else. There are already streaming competitors, and more will surely be on the way with Netflix's blood in the water. It is nice for us consumers to have one very cheap place to watch a lot of content for almost nothing with no commercials. The only reason Netflix had the ability to stream content for almost nothing to begin with is because studios wanted to see if anyone would be interested in watching content this way--NOT to continue giving away content for almost nothing (see what happened to the Starz deal). The fact that Netflix stock shot up like a rocket because it was using content for almost nothing is not a testament to the financial savy of Netflix, but the uncertainty the studios had that anyone would watch content this way. Now that they know people WILL watch (and in some sense ENTICED them to get in the habit by offering it so cheaply)...so do all of Netflix competitors. Streaming content is not proprietary--Netflix has no stranglehold on the market (it costs virtually nothing for other companies to make their streaming compatible with all the same devices Netflix is compatible with). And so Netflix stock plummetted. On top of THAT, they totally mishandled the new pricing structure, driving subscribers away--and have now made the most bizarre business decision I've ever encountered: splitting the company in two for some reason, and renaming the disc rental half "Qwickster". It's almost as if they WANT half the company to fail so they can focus on the streaming half, which has now been undermined by the change in the marketplace and making the "good" half far less attractive.
