Comments on: What would Netflix do? http://blogs.reuters.com/mediafile/2011/09/20/what-would-netflix-do/ Where media and technology meet Wed, 16 Nov 2016 08:48:25 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: hypodoche http://blogs.reuters.com/mediafile/2011/09/20/what-would-netflix-do/#comment-390428 Wed, 21 Sep 2011 15:01:53 +0000 http://blogs.reuters.com/mediafile/?p=29730#comment-390428 “By creating a separate disk business Netflix has suddenly given everyone who happily let Netflix take care of everything an excellent new reason to consider the alternatives.”

The more I think about it, the more I think they did this as a forced move to appease either distributors or shareholders, although I doubt the facts will ever be public. The streaming service is certainly worth $8/mo, but now they have to struggle against customer AND distributor discontent.

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By: samuel_c http://blogs.reuters.com/mediafile/2011/09/20/what-would-netflix-do/#comment-390426 Wed, 21 Sep 2011 14:23:44 +0000 http://blogs.reuters.com/mediafile/?p=29730#comment-390426 Netflix is on the ropes here. DVD mail order is a business with a very small profit margin. Hollywood is attempting to squeeze more out of Netflix per year than they make in profits. 1.94 billion dollars is what Hollywood is pushing for even if they bargain that down to 1/2 the starting point it’s far more than total profit for both business units. I suspect they are separating the business into two units so that if the cable companies and Hollywood succeed in killing their streaming side they still have the DVD mail order business.

I’m not saying they are down and out but they are upsetting the revenue model of the content providers. The content providers want them dead. The cable companies want them throttled or dead. It just surprises me that most people overlook these simple facts. What do they do if hollywood just cuts them off? With DVD’s they can buy them retail like everyone else. With streaming they just lose.

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By: CRMstrategies http://blogs.reuters.com/mediafile/2011/09/20/what-would-netflix-do/#comment-390424 Tue, 20 Sep 2011 22:32:30 +0000 http://blogs.reuters.com/mediafile/?p=29730#comment-390424 The key thing is that the CEO Mr. Hastings did not have a good reliable (less predictive error) price elasticity (from a statistician/econometrician) point of view. If it is properly predicted with least error and validated against all kinds of what if scenarios along with their corresponding opportunity costs there is a very high probability (almost 1) this could have been avoided – a botched case of loosing $4 Billion dollars and counting…

The CEO still can redeem at least a billion dollar if he acts on the following…

Wish he could save those money to invest back in the company.

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By: blee808 http://blogs.reuters.com/mediafile/2011/09/20/what-would-netflix-do/#comment-390423 Tue, 20 Sep 2011 21:58:25 +0000 http://blogs.reuters.com/mediafile/?p=29730#comment-390423 Hastings will not have a job for much longer. Nominated for worst CEO of the year.

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