Netflix spends nearly $2 million a day in postage alone while delivery physical disk is not only labor intensive but also carries a high cost of inventory controls and other fulfillment cost that are not seen with online models.

Online does not carry these expenses and they have seen that this is the future. Since they started slow and grew over time, they have little debt making it near impossible for a competitor to replicate what they have without incurring serious debt. There is little risk from anyone who would try to do the same as we saw when Blockbuster tried this model.

Where this leaves us is to either use Netflix or RedBox until more online services (and content) becomes available. My assumption is that we will see explosive growth in the streaming model over the physical disk model where any disk, CD, DVD and BR will soon become a thing of the past much like the 3.5" floppy disk and the VHS tape.

problem is that with streaming they have no advantage, anyone, including google, apple, amazon, et al can launch similar service pretty easily... google, apple and amazon all have more $$$, better infrastructure, better access to customers, etc... my guess is the only thing keeping netflix alive is that they signed some exclusive deals with the studios, so it's harder for competitors to enter that market...

According to bloomberg Netflix will have 600,000 fewer subscribers at the end of September than it had at the end of June. That is an actual loss. It is smaller than what I had read before, but still a loss.



From what I understood Starz wanted all the money and they wanted some kind of an increased price for those members who got the Starz package. For example you would have to pay an extra few dollars per month to get the Starz package.

Regardless of what they demanded, Netflix is not the bad guy for not making that deal. Starz is the dumb one. It is free money for Starz who likely will not see a big jump in subscriptions once this deal with Netflix runs out. I was simply pointing out that the Starz package was A. Flawed. Many of the movies had a finite number of views allowed on them and once Netflix reached that the movie was no longer available on streaming. There were at least 30 titles in my streaming queue that are no longer available for streaming. and B. potentially damaging if they don't replace it with something else. yes, they have all that money that they can spend on something else. The question is what will it be? The Starz deal, while flawed, does give them a lot of content so they will need to make a big deal if they want to keep people happy.

modern business is so cutthroat one slip up and the biggest business can be destroyed overnight.

It is truly amazing what people will argue over. Lol.

yes.. thats why i know that nobody buys porn anymore...


and with hollywood movies the same.. it makes no sense to pay if u can get it free.

what about you? are you realistic or you live in a BOX ?

So if you ran a grocery store and people were coming in and shoplifting from you, taking your products and not pay do you think that would justfy you then going to another store and taking stuff from them?

i was the typical Netflix customer that paid extra to have streaming and 2 DVDs at a time... i would typically keep my DVDs about 2 weeks before returning them. i would have never changed my plan, but thanks to them raising their rates i dropped to the 7.99 streaming only plan... thanks Netflix for saving me money through your stupid decision :)

I love netflix and its dirt cheap but thats not the point. They fucked up plain and simple. The only time a CEO says they fucked up is when the fuck up was so epic that there is no other choice.

They should have done gradual, smaller price increases to the dvd plans and added PPV movies for new releases to the streaming at say an extra 1.99 per movie or something. Instead they got arrogant and gave the finger to their customers. They are still ahead of the competition but fuckups of this magnitude are hard to come back from. The stink will be on them for a long time to come.

You said it better than I have been able to. My initial point in all of this is that normally businesses slowly ease the price increases onto their customers. They will normally increase it a little here and a little there, but Netflix just dropped the bomb and nearly doubled their prices and while the reality is that it still isn't a ton of money the thought of that big of a price increase was pretty shocking to many. Now they hit them with two different sites. Maybe they are just getting all the ugly out of the way in one big shit sandwich so they can go forth. I, however, think that they feel like they own the market (which technically the do) and they can do whatever they want because there is no real competition. I have a feeling though that there is competition not too far off into the future. If the rumors of what Apple TV might be doing are true it could be a wholesale game changer.

Companies are just like athletes or sports team. They are usually trending in a certain direction, either positive or negative.

Netflix is clearly trending in a negative direction. I don't necessarily mean earnings, I mean they seem to be making all the wrong moves, then they come out and apologize for the wrong moves with even more perplexing moves.

I also heard they lost Starz so their already pretty shitty selection of streaming movies will become even smaller.

So, Netflix forgot to grab the Qwikster Twitter handle before spinning off its DVD biz. Hilarity ensues

Sorry, Netflix! @Qwikster Twitter Account Owned by 'Pot-Smoking Elmo'

Read more: http://www.foxnews.com/scitech/2011/...#ixzz1YQocMI9b

Got that email too.

I love Netflix and I'm not cancelling any time soon. I don't see how anyone could not like it.. unless you're the type that won't watch a movie unless it was a huge blockbuster or came out this year.

Here is what I don't get. You can rent a new release for $1 (or $1.50 for BluRay) at Redbox. Why don't the cable/satellite companies get smart and put them all out of business by offering the same deal for their new release (or older) on-demand movies? If streaming video is the future, they why not capitalize on it. I would drop Netflix in a heartbeat and never rent again if I could get the same movies for $1 from Directv. If Redbox can offer them for $1 I would bet Directv would be able to do the same and make way more money doing it.

Burn DVD on demand Red box:thumbsup

You are a fucking loser. Sorry I meant to say, your are a thieving fucking loser. :thumbsup