Comments on: The new dynamics of Netflix http://blogs.reuters.com/felix-salmon/2011/07/13/the-new-dynamics-of-netflix/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Robert Ohlmann http://blogs.reuters.com/felix-salmon/2011/07/13/the-new-dynamics-of-netflix/comment-page-1/#comment-55614 Sun, 19 Oct 2014 16:13:48 +0000 http://blogs.reuters.com/felix-salmon/?p=8948#comment-55614 608711 104248This is some fantastic info. I expect additional facts like this was distributed across the web today. 73651

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By: MontgomeryKosma http://blogs.reuters.com/felix-salmon/2011/07/13/the-new-dynamics-of-netflix/comment-page-1/#comment-28614 Fri, 15 Jul 2011 21:22:55 +0000 http://blogs.reuters.com/felix-salmon/?p=8948#comment-28614 As the COO of Fandor (a new streaming service for people who love great independent movies), we’ve been seeing signs of this change for over a year from Netflix’s behavior in the film acquisition market. About a year ago they started backing off on streaming licenses for independent movies, and about six months ago started curtailing their purchases of long-tail DVDs.

So Felix is right — and it’s now becoming clear to everyone the shift in Netflix’s business model to mainstream content (tv and movies) and away from long-tail (or even mid-tail) independent, documentary, and international films. It’s a sensible business move – for one reason, it lets them free ride on all the marketing dollars that Hollywood puts behind their content.

The Independent published a great interview with Netflix on this subject in January. (http://www.aivf.org/magazine/2011/01/ne tflix_distribution_independent_diy_filmm akers) They’re only interested in content with proven “queue demand.” Query what that means anymore if they’re moving away from the queue for streaming customers?

That’s fine with us — it creates opportunity for companies like Fandor to help out customers who are looking for interesting, thought-provoking movies beyond what Big Hollywood has to offer.

Our belief: on-line delivery is critical to the success of independent and international film because it directly attacks the biggest obstacles people face to discovering and watching those movies: easy access, risk-free exploration, and ability to spread the word about great movies via word-of-mouth.

That’s what we built Fandor to do. I invite your readers to check us out at http://www.fandor.com!

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By: TurtleBay http://blogs.reuters.com/felix-salmon/2011/07/13/the-new-dynamics-of-netflix/comment-page-1/#comment-28536 Wed, 13 Jul 2011 23:42:30 +0000 http://blogs.reuters.com/felix-salmon/?p=8948#comment-28536 KenG_CA is completely right.

In the beginning, Netflix was a marginal media purchase for movie buffs. Most subscribers got Netflix in addition to Cable TV, movie theater visits and DVD purchases so studios viewed this as marginal revenue. Now more and more people are replacing cable with Netflix subscriptions (myself included), movie theaters are needing to turn to gimmicks like 3D as home theaters improve and DVD sales are way down. The content producers are realizing that Netflix is in fact a direct substitution for other forms of media consumption rather than a marginal additional source of revenue.

Consumers seem to be spending about the same amount of time watching content, so for Netflix to be a good deal for the studios the Netflix content rights deal need to replace dollar for dollar the revenues from the other content distributors they are stealing eyeballs from. Movie theaters, DVD sales, iTunes Store and TV networks pay way more per viewer-hour (usually at least $1 per viewer-hour) than Netflix currently does (assuming at least say 3 two-hour DVDs and 6 hours streaming per month for $10), and thus the studios are missing out on this revenue.

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