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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 mode
by 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 agoDid 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 agoI'm pretty sure they were getting paid for Netflix signups from the beginning.