Why Netflix Is Winning
13 Apr, 2010 By: Stephanie Prange
I recently had a conversation with a journalist about the changes in the business and an interesting anecdote came up.
He said a friend of his purchased a season set of “24” on disc and then returned it to get his $50 back.
Why?
He found that through his Netflix subscription he could see the entire season via streaming for no extra charge to his subscription fee. It also explains why Netflix uses the 15-minute streaming measure (rather than one hour or so to connote a movie) in describing its electronic delivery success. Many of Netflix’s streaming customers are watching TV shows online.
Price. That is why Netflix is soaring — and why the studios are trying to push back new release availability on the site. But Netflix may be hurting TV DVD sales as well. Unless a TV show is collectible, TV DVD sales may take a hit. With Netflix streaming entire seasons, the need to buy TV DVD sets may decline.
The real reason Netflix is a success isn’t necessarily its technology, but its value.
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