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The most interesting thing about your comment is you consider Netflix a streaming-only service. Kudos to Netflix for being ahead of the curve here, despite the

by dminor 16y ago

The most interesting thing about your comment is you consider Netflix a streaming-only service. Kudos to Netflix for being ahead of the curve here, despite the fact that streaming is much harder to implement and probably less profitable than their core DVD rental business.

kenjackson 16y ago
Actually their core DVD is less profitable. It costs them something like $1 to send you a DVD, and a nickel to stream you a movie. Notice that the Netflix site actually hides their premium packages (3+ disks at a time). People who aggressively watch and return DVDs to Netflix probably cost the company money.
- chopsueyar 16y ago
  Are they getting special EC2 negotiated rates? A two hour movie streamed to me costs 5 cents in computing power and bandwidth AND Amazon is still making a profit? [UPDATE] http://aws.amazon.com/ec2/#pricing http://aws.amazon.com/ec2/#pricing This says 8 cents per GB data transfer out.
  - brown9-2 16y ago
    Streaming is not hosted on Amazon, it's CDN based. http://qcontokyo.com/pdf/adriancockroft.pdf http://qcontokyo.com/pdf/adriancockroft.pdf Slide 20ish
    - chopsueyar 15y ago
      From your slide set, page 21 says Amazon receives a master tape from the studio then converts it to a high-quality format on s3, then stores in 50 different formats and pushes those to the CDN. The more times someone stream a specific movie, the more these "fixed" costs are recovered. According to the chart you referenced, the CDN is still a part of the Amazon ecosystem. Amazon Cloudfront is 3 cents a Gigabyte (once you're over 1000tb)
  - kenjackson 16y ago
    Reed Hastings has on several occassions said it is about a nickel per movie. “It costs us about a dollar, round-trip, to send DVDs by mail. It costs us less than a nickel to deliver by streaming.” Netflix now spends $600 million a year on the postal service [note to Jim Cramer: short USPS now!] and lots of hourly labor checking DVD quality. http://newsonomics.com/reed-hastings-six-lessons-for-the-newspaper-industry/ http://newsonomics.com/reed-hastings-six-lessons-for-the-new...
rickdale 16y ago
I only use Netflix for streaming and everyone I know has the same problem with Netflix that I do. The streaming content is absolutely LAME. Thanks for all the downvotes though, glad to know there is a Netflix fan club somewhere.
- 83457 16y ago
  Did you read your post? The downvotes aren't due to some Netflix fan club. Talk about what you don't like about the selection on Netflix instead of just calling it and its movies terrible. "I know a movie is bad if it's available for streaming on netflix." Many of the best movies ever made are available for steaming. "I only use Netflix for streaming and everyone I know has the same problem with Netflix that I do. The streaming content is absolutely LAME." Yet you still use Netflix?

by dminor 16y ago

kenjackson 16y ago

Actually their core DVD is less profitable. It costs them something like $1 to send you a DVD, and a nickel to stream you a movie. Notice that the Netflix site actually hides their premium packages (3+ disks at a time). People who aggressively watch and return DVDs to Netflix probably cost the company money.

chopsueyar 16y ago
Are they getting special EC2 negotiated rates? A two hour movie streamed to me costs 5 cents in computing power and bandwidth AND Amazon is still making a profit? [UPDATE] http://aws.amazon.com/ec2/#pricing http://aws.amazon.com/ec2/#pricing This says 8 cents per GB data transfer out.
- brown9-2 16y ago
  Streaming is not hosted on Amazon, it's CDN based. http://qcontokyo.com/pdf/adriancockroft.pdf http://qcontokyo.com/pdf/adriancockroft.pdf Slide 20ish
  - chopsueyar 15y ago
    From your slide set, page 21 says Amazon receives a master tape from the studio then converts it to a high-quality format on s3, then stores in 50 different formats and pushes those to the CDN. The more times someone stream a specific movie, the more these "fixed" costs are recovered. According to the chart you referenced, the CDN is still a part of the Amazon ecosystem. Amazon Cloudfront is 3 cents a Gigabyte (once you're over 1000tb)
- kenjackson 16y ago
  Reed Hastings has on several occassions said it is about a nickel per movie. “It costs us about a dollar, round-trip, to send DVDs by mail. It costs us less than a nickel to deliver by streaming.” Netflix now spends $600 million a year on the postal service [note to Jim Cramer: short USPS now!] and lots of hourly labor checking DVD quality. http://newsonomics.com/reed-hastings-six-lessons-for-the-newspaper-industry/ http://newsonomics.com/reed-hastings-six-lessons-for-the-new...

rickdale 16y ago

I only use Netflix for streaming and everyone I know has the same problem with Netflix that I do. The streaming content is absolutely LAME. Thanks for all the downvotes though, glad to know there is a Netflix fan club somewhere.

83457 16y ago
Did you read your post? The downvotes aren't due to some Netflix fan club. Talk about what you don't like about the selection on Netflix instead of just calling it and its movies terrible. "I know a movie is bad if it's available for streaming on netflix." Many of the best movies ever made are available for steaming. "I only use Netflix for streaming and everyone I know has the same problem with Netflix that I do. The streaming content is absolutely LAME." Yet you still use Netflix?