39 ms·

No-one could have competed on hardware price without placement and ad deals anyway. Those are why the hardware can be so cheap.

• andrewla 7y ago
  The hardware initially was cheap, and had no placement ad deals. Possibly they were selling at a loss, who knows?, but for sure at one point their business model was to sell a hardware device that was good at streaming.
  • karatestomp 7y ago
    Did the early models not bundle apps for any services? From what I’ve seen in the space, consumers want to spend $30-50, retailers want a giant percentage to put you on their shelves, and that doesn’t leave much for hardware assuming you want any profit. Then there’s support, design & R&D... A few ad deals or some sponsorship for placement/bundling and suddenly hitting an acceptable price seems almost feasible. [edit] and of course price expectations are so low because the competition’s selling at-cost and making money on the side deals. You’re on the shelf next to something with ads but that doesn’t go on the price sticker.
  • 01100011 7y ago
    I'm pretty sure they were getting paid for Netflix signups from the beginning.