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"The good news for them is that it won't be any easier for competitors to get those rights at a reasonable price" I'm not sure this is true. When you look at
by TomOfTTB 15y ago
"The good news for them is that it won't be any easier for competitors to get those rights at a reasonable price"
I'm not sure this is true. When you look at a company like Amazon or Walmart they have a lot of power to negotiate with that Netflix doesn't. Premium placement of a Studio's new products for example.
Studios make most of their money off the new items and very little off the older ones. Netflix exclusively sells the older items where as companies like Walmart and Amazon control the main distribution models for the newer items. That gives them a lot of power over the studios and a much better bargaining position.
- crgt 15y agoThis actually helps Netflix too. The last thing the studios want is to be held hostage by one or two major players that control all the distribution channels and can act as a choke point. Worst case, a viable Netflix gives the studios leverage when negotiating with Amazon & Walmart. Unless you see a reason that this will be a winner-take-all market, the studios need Netflix as much as Netflix needs them. Particularly because of the leverage of the other players that you mention. No?
- TomOfTTB 15y agoI agree with the logic of your statement but I'm not sure it will work out that way. I've never understood why the studios didn't do more to help iTunes competitors.
- morrow 15y agoI'm not well aware of any iTunes competitor with the number of paying customers apple has or had when iTunes first came out - I'm guessing they just went where the money was.