Rich Fiscus
29 Sep 2011 17:14
A new report from Knowledge Networks suggests Dish Network's strategy of combining pay TV and unlimited streaming could cost Netflix customers.
Currently, according to the report, more than a third of US consumers say they watch a movie or TV show from Netflix at least once per month. That includes both their streaming and disc rental business.
Some of that viewing is coming at the expense of VOD offerings from pay TV services.
However, 20 percent of respondents to their survey who indicated they are watching less VOD in favor of Netflix also said if their pay TV provider offered a similar streaming service, they would be "very likely" to switch.
That could be good news for Dish Network and Blockbuster, who unveiled just such a plan last week called Blockbuster Movie Pass.
Dish bought Blockbuster earlier this year largely to get their streaming service. They are also considered a leading contender to buy Hulu.
What Netflix seems to have underestimated is how much of Watch Instantly's value was the appearance of being free. From that point of view, their recent price hike left disc rental prices basically the same, while streaming jumped from free to $7.99 a month.
At a price of nothing, Netflix streaming is pretty clearly the best value around. At any othe price there would seem to be a clear opening for any number of competitors.