5 ms·

I feel like this move is too early for Netflix strategy-wise for non-power users. Yes, it may be the case that their early adopters plow through premium TV, bu

by Dwolb 11y ago

I feel like this move is too early for Netflix strategy-wise for non-power users. Yes, it may be the case that their early adopters plow through premium TV, but I'd like to investigate more to understand if people choose Netflix to have the option fo view movies like Transformers, licensed from Epix. This move would happen eventually as creators gain access to streaming (distribution) platforms and platforms (like Netflix) start creating. Each player is only gaining margin and then succeeding in locking in users. As a user, I would have preferred to see Netflix take the agency approach and allow streaming titles to take a percentage cut of revenue (although this would be difficult to calculate and bad for blockbuster hits who seek to increase risk and reward). This would mean Netflix competes on technology while content creators compete on price. If I were an investor, again I say this move is too early but one that, as the article mentions, was inevitable in the current model.

dogma1138 11y ago
With that approach Netflix will still have to setup the same infrastructure and get a lesser cut of the pie with how much it seems to cost them to stream as it is i don't see it working out. Whats worse it won't give them the ability to control their content offering which means they can't really steer their business. Also since broadcast licensing is a steaming pile of shit outside of the US you can't rely on smaller companies handling that it takes a giant to uproot existing right holders in Europe and in other regions and Europe is already a mess with tons of streaming providers in every country that have to geoblock everyone else because the licensing laws pre-date the shared market and also have to yield to local guilds when it comes to translations and dubbing. People have chosen Netflix in the past because it was a reliable way to have something to watch these days it might not be the case anymore. Their library is much more fluid and much of the content is being rotated in and out every couple of months to a point were their old 3 months notice period is no longer maintainable. 2 Years ago i could log into netflix and know for sure there will be something worth while to watch today I usually have to browse 3 services to find something. Their original shows are great House of Cards is amazing, and Narco's that came out just over the weekend and it rocked but it's becoming not worth keeping a sub if we are all honest. Gabe Newell said it best - the only way to combat piracy is to deliver a better service than the pirates and sadly Netflix and the other streaming providers are slipping behind. When I can get a better library and better quality from popcorn time why should i pay 20 GBP a months for streaming providers which force me to go trough 3 different libraries to find watchable content? Heck I've goot a Roku streamer just so I could have a single place to search through all the content providers i subscribe too instead of having to load Now TV, Netflix, Amazon Prime, BBC Player and other nonsense on my TV and It's still not as slick as PCT....
- jamespo 11y ago
  So what you want is the service to be very cheap and have a massive amount of content available.
  - couradical 11y ago
    I think I'd be willing to pay more to offset higher content costs for more theater/blockbuster type movies. If Netflix was say 14.99 instead, I wonder what that would do to help? Perhaps splitting the content between tiers? It would shrink their "user base" for the purposes of streaming, allowing higher per-user payments on a title-by-title basis. Sad part is, I know they are trying to lower that amount, and show that content providers need them as much/more than Netflix needs their content, but as a consumer, I'd like the options.
    - patzerhacker 11y ago
      An idea for NetFlix would be to have a higher tier package that has access to content for longer. So if the average agreement for access to material is six months, people with the higher tier package have access to it for six months and people without it have access for four months. Higher tier customers get it a month early and a month after it rotates out for lower tier customers.
  - dogma1138 11y ago
    I would pay much more if I could have a single place to look for content this is why I sub to 3 providers and also bought a box that aggregates all the streaming content i can access into a single library. But considering that no matter how much I pay I can't seem to get a reliable library these days and the bang for the buck degrades with every passing day I am more and more reluctant to continue using those services. I got Netflix with the UltraHD package and it was easier and better to get both Narco's and Daredevil using alternate means that's something shouldn't happen.
    - ascagnel_ 11y ago
      > I would pay much more if I could have a single place to look for content You're describing the traditional pay-TV model in an on-demand world. Every industrialized nation has one.
JonoBB 11y ago
This again proves how the music industry is far and away better at the streaming model, whereas the movie industry is still trying to find its way.
- hvs 11y ago
  Streaming music is a different beast. People tend to listen to the same music multiple times. The same is not true of movies.
teddyuk 11y ago
People who have money to spend will spend it on premium products, people who don't will sit for hours wasting their lives away watching cheap crap (soaps in the uk). Best differentiating yourself and keeping it premium, price and content.

by Dwolb 11y ago

dogma1138 11y ago

With that approach Netflix will still have to setup the same infrastructure and get a lesser cut of the pie with how much it seems to cost them to stream as it is i don't see it working out. Whats worse it won't give them the ability to control their content offering which means they can't really steer their business. Also since broadcast licensing is a steaming pile of shit outside of the US you can't rely on smaller companies handling that it takes a giant to uproot existing right holders in Europe and in other regions and Europe is already a mess with tons of streaming providers in every country that have to geoblock everyone else because the licensing laws pre-date the shared market and also have to yield to local guilds when it comes to translations and dubbing. People have chosen Netflix in the past because it was a reliable way to have something to watch these days it might not be the case anymore. Their library is much more fluid and much of the content is being rotated in and out every couple of months to a point were their old 3 months notice period is no longer maintainable. 2 Years ago i could log into netflix and know for sure there will be something worth while to watch today I usually have to browse 3 services to find something. Their original shows are great House of Cards is amazing, and Narco's that came out just over the weekend and it rocked but it's becoming not worth keeping a sub if we are all honest. Gabe Newell said it best - the only way to combat piracy is to deliver a better service than the pirates and sadly Netflix and the other streaming providers are slipping behind. When I can get a better library and better quality from popcorn time why should i pay 20 GBP a months for streaming providers which force me to go trough 3 different libraries to find watchable content? Heck I've goot a Roku streamer just so I could have a single place to search through all the content providers i subscribe too instead of having to load Now TV, Netflix, Amazon Prime, BBC Player and other nonsense on my TV and It's still not as slick as PCT....

jamespo 11y ago
So what you want is the service to be very cheap and have a massive amount of content available.
- couradical 11y ago
  I think I'd be willing to pay more to offset higher content costs for more theater/blockbuster type movies. If Netflix was say 14.99 instead, I wonder what that would do to help? Perhaps splitting the content between tiers? It would shrink their "user base" for the purposes of streaming, allowing higher per-user payments on a title-by-title basis. Sad part is, I know they are trying to lower that amount, and show that content providers need them as much/more than Netflix needs their content, but as a consumer, I'd like the options.
  - patzerhacker 11y ago
    An idea for NetFlix would be to have a higher tier package that has access to content for longer. So if the average agreement for access to material is six months, people with the higher tier package have access to it for six months and people without it have access for four months. Higher tier customers get it a month early and a month after it rotates out for lower tier customers.
- dogma1138 11y ago
  I would pay much more if I could have a single place to look for content this is why I sub to 3 providers and also bought a box that aggregates all the streaming content i can access into a single library. But considering that no matter how much I pay I can't seem to get a reliable library these days and the bang for the buck degrades with every passing day I am more and more reluctant to continue using those services. I got Netflix with the UltraHD package and it was easier and better to get both Narco's and Daredevil using alternate means that's something shouldn't happen.
  - ascagnel_ 11y ago
    > I would pay much more if I could have a single place to look for content You're describing the traditional pay-TV model in an on-demand world. Every industrialized nation has one.

JonoBB 11y ago

This again proves how the music industry is far and away better at the streaming model, whereas the movie industry is still trying to find its way.

hvs 11y ago
Streaming music is a different beast. People tend to listen to the same music multiple times. The same is not true of movies.

teddyuk 11y ago

People who have money to spend will spend it on premium products, people who don't will sit for hours wasting their lives away watching cheap crap (soaps in the uk). Best differentiating yourself and keeping it premium, price and content.