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Remember that Netflix came around in a consumer culture that was renting videos and DVDs from corner shops for maybe $2-4 a pop. Throughout their history, all
by cowboyhero 16y ago
Remember that Netflix came around in a consumer culture that was renting videos and DVDs from corner shops for maybe $2-4 a pop.
Throughout their history, all of Netflix's pricing structures have been designed to stay within that range.
It costs Netflix pennies to stream movies. ("Akamai charges a customer like Netflix about 5 cents for an HD movie, compared with about 3 cents for standard definition." See: http://www.businessweek.com/magazine/content/10_34/b4192038586570.htm http://www.businessweek.com/magazine/content/10_34/b41920385...)
I expect their prices to rise, though. If they want to stream first run movies (a la cable), they're going to have to pony up serious dough for the licenses. That means higher costs to the end consumer.
- rjurney 16y agoWhy would they want to do that? They're kicking ass on the long tail.