AfterDawn: Tech news

Netflix to start streaming-only plan?

Written by Andre Yoskowitz (Google+) @ 26 Sep 2010 1:52 User comments (19)

Netflix to start streaming-only plan? Netflix CEO Reed Hastings has said today that the company may offer a streaming-only plan for the United States, cutting out the ability to receive physical media in the mail.
The subscription would be cheaper than Netflix's current plans, which are $8.99 minimum for renting and streaming and would give users a chance to access 15,000 movies and shows via Watch Instantly.

"A cheaper subscription plan could be more attractive to new (subscribers) and it would also likely carry higher gross margins and potentially even higher gross profit (over time), given the extremely low cost of delivering streaming content," adds analyst Douglas Anmuth of Barclays Capital in a research note.

The rental company recently signed a multi-year deal to increase its NBCU streaming content, including all the seasons of "Eureka," "The Office," "Battlestar Galactica," and others. Additionally, Saturday Night Live episodes will be available the day after they air.

Hastings noted that 60 percent of Netflix's 15 million subscribers used the streaming service last quarter, on desktops, the iPad/iPhone, gaming consoles and a number of Blu-ray players and set-top boxes.

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19 user comments

126.9.2010 8:01

Like wow They Just Invented Pay Per view again !


FeetZ Up ! Head Down !

226.9.2010 8:39
davidike
Inactive

get ready for the big media arse f**k, as they will now remove all rights to resell the licence using the EULA, stop you lending or selling media, they will block all but their chosen sources for distribution, they will try also to remove physical media as currently you have rights to re-sell with that. they will try to get us all to download media at a time when ISP's are restricting everyone to a small GB allowance.

326.9.2010 12:18

Originally posted by davidike:
get ready for the big media arse f**k, as they will now remove all rights to resell the licence using the EULA, stop you lending or selling media, they will block all but their chosen sources for distribution, they will try also to remove physical media as currently you have rights to re-sell with that. they will try to get us all to download media at a time when ISP's are restricting everyone to a small GB allowance.
What? This for streaming movies online through Netflix...

426.9.2010 12:31
davidike
Inactive

Originally posted by DVDBack23:
Originally posted by davidike:
get ready for the big media arse f**k, as they will now remove all rights to resell the licence using the EULA, stop you lending or selling media, they will block all but their chosen sources for distribution, they will try also to remove physical media as currently you have rights to re-sell with that. they will try to get us all to download media at a time when ISP's are restricting everyone to a small GB allowance.
What? This for streaming movies online through Netflix...
well they want us all to shift to digital only distribution, not for just rentals. but ISP's are now restricting our GB usage as low as 10GB in the UK so where does netflix stand here?

will neutrality fail and companies like netflix pay off ISP's to discount this data turning the net into a majors only playing field, or will ppl just not be able to afford to stream?

dumping physical media just feels bad to me. especially when they are trying to turn everyone onto a subscription model instead of just paying for what we want instead of paying for countless talentless trash flicks that they can use to bolster media numbers so a constant revenue can be passed onto the media cartels to produce more trash flicks.

purchase only talent, dont subscribe to s**t....
This message has been edited since its posting. Latest edit was made on 26 Sep 2010 @ 12:35

526.9.2010 14:31

Originally posted by BIGTOXY69:
Like wow They Just Invented Pay Per view again !
Not really as you would get unlimited streaming of a nice selection of movies and TV shows for a set price.

Now NetFlix needs to start talking Comcast, Charter, etc. into removing, or greatly increasing, their bandwidth caps...

"The only people who should buy Monster cable are people who light cigars with Benjamins." - Gizmodo

626.9.2010 15:53
davidike
Inactive

Originally posted by Pop_Smith:
Now NetFlix needs to start talking Comcast, Charter, etc. into removing, or greatly increasing, their bandwidth caps...
now that is a bad idea unless all the ISP's are regulated by government to keep the internet neutral otherwise only paying companies will be allowed bandwidth destroying the freedom of the internet in favour of a corporate owned gatekeeper channel like cable tv.

great video here:

fta: "In this deep, engrossing Engadget interview, law professor Tim Wu talks about Net Neutrality and why it matters"
http://www.boingboing.net/2010/09/24/tim-wu-on-net-neutra.html
This message has been edited since its posting. Latest edit was made on 26 Sep 2010 @ 15:55

726.9.2010 16:20

In all honesty, american people are very stupid so Netflix will be loosing revenue if they make this decision.

826.9.2010 17:26

Access to 15,000 movies..........14500 are 10 years old.....485 are outdated........and i already saw the other 15. get real and get some new movies.. streaming only? I'm done with netflix.

This message has been edited since its posting. Latest edit was made on 26 Sep 2010 @ 17:28

926.9.2010 18:05

You guys do understand this will just be an extra option, right? You can still have your regular plan at $8.99, or get this streaming one for cheaper...


1027.9.2010 8:50

Originally posted by DVDBack23:
You guys do understand this will just be an extra option, right? You can still have your regular plan at $8.99, or get this streaming one for cheaper...
Exactly...

1127.9.2010 10:13

Originally posted by evohold:
Originally posted by DVDBack23:
You guys do understand this will just be an extra option, right? You can still have your regular plan at $8.99, or get this streaming one for cheaper...
Exactly...
Well, it's already offered in Canada for $7.99 /month. I was almost tempted to sign up for the 1 month free trial until I browsed what was available. The selection is VERY limited. Closer to 1000 titles, not anywhere near 15K.
http://www.netflix.ca/BrowseSelection
Also 20GB/mth download restriction from Videotron means less than 12 HD shows/movies per month then I pay per MB. I don't think so.

1227.9.2010 12:36

Originally posted by joepet200:


The selection is VERY limited. Closer to 1000 titles, not anywhere near 15K.


Err yeah there's the problem...For this to work they need to put it all out there including new releases!



Just my $0.02,

dEwMe

1330.9.2010 23:19

I would love to see netflix move their whole library to streaming...as it is, only about 5% of my searches return "watch instantly" titles, yet over 95% of my searches find something they have on DVD. I guess streaming is still a much better selection than blockbuster ever had.

143.10.2010 7:50

Originally posted by KillerBug:
I would love to see netflix move their whole library to streaming...as it is, only about 5% of my searches return "watch instantly" titles, yet over 95% of my searches find something they have on DVD. I guess streaming is still a much better selection than blockbuster ever had.
Yes I'd love to see the entire library available for streaming. Think of what Netflix would save on postage!! Besides it would cut out members copying the DVD's & don't think that some (if not all) members don't do that because I'll bet they do.

153.10.2010 12:17
hildred
Inactive

yes will there more hdtv/5.1 sound with that yes or no

163.10.2010 12:50

Originally posted by bratcher:
Yes I'd love to see the entire library available for streaming. Think of what Netflix would save on postage!! Besides it would cut out members copying the DVD's & don't think that some (if not all) members don't do that because I'll bet they do.
Netflix probably mails so many DVDs/Blu-Rays every month that it costs them pennies to mail one. Let's do some math:

It costs $9/month for the cheapest subscription, which is more than likely their most popular plan. Let's say it costs them $0.10 to mail each DVD. You can get ~20 DVDs in a given month with the $9 plan so that's $2 in mailing costs.

Assuming Netflix doesn't "throttle" you at all this means Netflix earns ~$7/month off a heavily-used basic subscription. Now remember they have more than 15 million members. If we assume 80% of them use the basic plan than we get:

- 12 million users times $9/month = $118 million per month from member fees

- $7/month earned off those 12 million members = $84 million.

Yes, people do copy the DVDs but that is something any DVD rental company is going to experience. Because of the size of their library (100,000 titles at the start of 2009) it really doesn't matter (to Netflix) if people copy them or not.

Streaming might cut down on piracy temporarily but there are many ways to capture the video output of a computer, or even the 360 or PS3 if you are streaming via a console.

"The only people who should buy Monster cable are people who light cigars with Benjamins." - Gizmodo

173.10.2010 13:25
davidike
Inactive

Originally posted by Pop_Smith:
Netflix probably mails so many DVDs/Blu-Rays every month that it costs them pennies to mail one. Let's do some math:
i reckon mailing the films will be cheaper than paying for the bandwidth to host them all, unless they use p2p to distribute but seems ISP's are traffic shaping p2p to the stone age thats hardly going to work, unless netflix pay the ISP's to prioritise their traffic, which isnt the future i want to see as that will be the day the corporations take over the internet and sites like afterdawn will die a slow death having their bandwidth squeezed out much the same as sony payola but with the net this behaviour will be legal thanks to net neutrality regulation of the ISP's being scrapped.

Sony BMG Settles Radio Payola Probe

Sony Payola

Sony BMG Apologizes For Payola Involving J. Lo, Avril, Good Charlotte, Others

Quote:
The payola has got to stop that's the word from New York State Attorney General Eliot Spitzer, who on Monday announced a settlement with Sony BMG Music Entertainment, which has agreed to cease its "pay for play" policy.

The label group, home to such acts as Jessica Simpson and Franz Ferdinand, was the subject of a yearlong investigation that revealed it was paying and providing expensive gifts otherwise known as "payola" to radio stations and their employees in return for airplay, in a violation of state and federal law. The payola took the form of outright bribes as well as fictitious contest giveaways for listeners, which actually went to station employees.
now imagine how these corrupt corporations will destroy the net for their advantage seems there is no regulation to stop the ISP's manipulating protocols and prioritising traffic.
This message has been edited since its posting. Latest edit was made on 03 Oct 2010 @ 13:31

183.10.2010 17:01

Davidike, they're still going to have plans with physical rentals. This new streaming only is an ADDITIONAL plan to what they currently offer.

"The subscription would be cheaper than Netflix's CURRENT plans..."

194.10.2010 4:39
davidike
Inactive

Originally posted by fb2000:
"The subscription would be cheaper than Netflix's CURRENT plans..."
yes i know fb2000, i was agreeing with popsmith & adding my two pence worth and how i see the future.

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