Now this is one stat from an analyst that we wouldn't refute, but we do wonder how Versaly Entertainment aquired this information. How exactly does one calculate streaming revenue from a subscription service like Netflix anyways? To be fair we are only assuming that Netflix is involved here as it wasn't specifically mentioned, but we really can't think of any other subscription based video streaming service. Our best guess is that the revenue in question is based on what the studios are receiving and not for the service itself. Regardless, it isn't hard to figure out why no one is paying $4-$5 for the 24 hour rights to watch a movie on any of the pay-per-download services out there. Especially when you can rent a movie from just about anywhere via Redbox for $1.
Read -- Subscription downloads outperform pay-view.
Read -- Redbox undermining DVD value
posted Aug 6th 2009 4:22PM
Honestly, with a streaming service like Netflix, you'd be hard pressed to find me a good reason for why buying TV shows and movies a la carte would be better in the long run for your wallet. And if you really DO want something long term, then getting the DVD a couple months after it's released is far cheaper.
completely agree.... netflix streaming has really opened my eyes to how movie watching should be done.
I'd pay for online streaming access to live broadcast of college football.
But that's about it.
Not that anyone asked, but for me:
money spent on Netflix: $10/mo
Money spent on pay per download: $0
I don't remember there being additional fees when streaming instantly started on Netflix.
Yeah, it's one fee that gives you the "regular" rental of physical media, with the Watch Instantly function as an added feature in all but the cheapest plan. How can they figure how much money is being spent on just the streaming?
The Netflix + Netflix streaming + Redbox combo has been hard to beat for me anyway. Netflix takes care of the planned viewings and Redbox is there for the quick decision ones. So far it has worked really well.
I am going to have to call you guys on this one. Red box is $1 per day - not $1 plus it doesn't take long to rake up transportation costs if you have to go out of your way to get to one. Also I will am going to call you on VOD every cable and Sat company has these services and they are cash cows. Not really sure how Amazon is doing but it appears they are doing well.
Netflex may make more sense but that hasn't stopped the mases yet.
True, but if you're like me, you pass about 5 of them on your commute to work, so it's no problem to take them back the next day.
I've always thought the price for VOD services at 4 dollars/6 dollars HD was beyond ridiculous, and I NEVER rent anything through Comcast/Xbox Live/PSN.
IMO, that's one thing holding up digital distribution.. cost. Take Microsoft's new "games on demand service" for instance. great, convenient, but priced the same as the complete disc version. Why? I don't understand why they don't make them 5-10 bucks cheaper, which would draw more people in & then they stop losing so much money on used game sales.
I see no incentive to buying a retail game "on demand". I can't sell it when I'm done, and it's only going to take up HD space.
Netflix is priced well, that's all there is to it. Redbox may require you to leave the house, but when I can rent 6 blu-rays for the price of 1 compressed HD download, I'm taking a ride.
Bittorrent FTW
I'm not sure I'd pay for just Netflix's Watch It Now.
When are PC's getting that HD for netflix?
I want to know this too!!
Although the HD selection of Watch Instantly titles needs a serious overhaul, I really like that the streaming quality is better on my Samsung BD-P2550 (with the ever-miraculous HQV chip) than what I get with the Xbox 360. The video processing happening inside the player affects streams as well as standard DVDs and Blu-ray discs, something I hadn't expected. I would imagine my display also chips in, but the point is that what you use to watch the streams makes a difference.
I'd love to see what it looks like on my LG Super-Blu player with Marvell's Qdeo chip. Owners of this player know this chip is no slouch either. And things will only get better if Netflix decides to improve things on their end with the magic of compression. Or maybe charge a little more for delayed but higher quality streams (e.g., Vudu). I wouldn't give up Blu-ray discs entirely, but I'd gladly drop one or two at a time in exchange for better streaming.
well netflix are interested in getting a deal done with EPIX HD (they have exclusive rights to liongs gate paramount, mgm, they get stuff only a few months after its released. they will have the new star trek movie available for streaming around october.
I would think that they can calculate your revenue, based upon the aggregate data accessed via APIs from Netflix, as can be seen at feedfliks.com, that knows how many DVDs you've rented and how many Watch Instantly movies you've streamed, and what subscription you're on.
For instance, I know that based upon my rental history, my average DVD rental cost is $0.65, and with streaming, my cost drops to $0.23, although that's a little misleading as they count individual episodes (as in a tv series) as a single movie.
After much calculations, you should essentially derive a revenue number that is wholly from streaming, and compare it to PPD.
"although that's a little misleading as they count individual episodes (as in a tv series) as a single movie."
Actually that's not misleading at all. PPD services like PSN, Xbox Live, etc. charge around $2 an episode (!) so its actually a fair comparison. The rest of your point is excellent but Versaly Entertainment didn't say how they came to their conclusions so its slightly suspect.
I do not think price is the only factor. I hardly ever use the on demand service my local cable company provides. Yet I can get many of the same movies I will stumble across while flipping stations, and will watch, for free. The reason is I have to "think" about going to On Demand section, just like I would have to think about renting a movie as oppose to using something that is "always on".
I might be one of the few who has NetFlix, but hardly uses the streaming service...I have a 360 and an XBL Gold account too, but I only have a 1.5mbps DSL connection, so I cannot get HD streaming. After getting used to the quality of Blu-Ray movies via NetFlix or upconverted DVDs there is just no way I can enjoy SD streaming.
It's convenient and I will probably use it once high speed broadband costs go down (right now I am paying 30.00/month and to switch to Comcast it would be 60.00/month) but right now Blu/DVD via NetFlix/Redbox is definitely a better option compared to DD (too expensive, too long to DL, small selection) and Streaming (not enough bandwidth for HD, small selection).
I always though VOD was a rip-off and I've NEVER used that feature. I don't want to pay these crazy prices, and the HD versions are even more costly. Now if I could watch a VOD HD movie for $1, I'd be all over that!!! I like Netflix streaming service. I'm not a HD a-hole, I have no problems watching SD content, or lower quality. Not everything needs to be in HD. I hear about a movie and I can go look and see if I can stream it, then I watch it right then. There's new Movies posted up Daily at Netflix to stream. A lot of garbage I don't care to watch, but a few here and there that I do and I add them to my ever growing list of movies to watch. In fact I'll be watching something from Netflix streaming shortly. The worst part is trying to pick something from my list.
Once in a while I'll watch one of the FREE On Demand HD movies from Comcast. My Internet Speeds have also recently increased even more for free. ZOOM, ZOOM. Man, if I had to go back to slow DSL service, that would SUCK. I'm near the farthest Range to get DSL and so it's even slower then that 1.5mbps. Maybe half that speed. Faster then Dial-Up and always on, but still. Don't have that problem with Cable, but it's more money. Fiber would be nice, but none of that around here. I also never got the whole charging the same for say a DVD Download and burn yourself that still wouldn't work on all your DVD players then just buying the DVD in the store, and sometimes that would be cheaper!! The Games on Demand for the 360, SAME PRICE? Talking about being a SUCKER. The ONLY plus is you don't have to have the disc in the drive, but other then that, your taking up HDD space, and when your tired of the game you can't sell it!!! No thanks, will never use that feature. Oh I'm sure the Game Company's LOVE that. They've always complained that they never make any money in the Used game sales market!!! Not a Issue with Games on Demand.