Netflix’s big problem, it seems to me, is that it can’t afford the content that its subscribers most want to watch. It could try to buy streaming rights to every major Hollywood blockbuster in history — but doing so would cost hundreds of billions of dollars, and could never be recouped with $7.99 monthly fees. What’s more, the studios can watch the Netflix share price as easily as anybody else, and when they see it ending 2013 at $360 a share, valuing the company at well over $20 billion, that’s their sign to start raising rates sharply during the next round of negotiations. Which in turn helps explain why Netflix is losing so many great movies.
As a result, Netflix can’t, any longer, aspire to be the service which allows you to watch the movies you want to watch. That’s how it started off, and that’s what it still is, on its legacy DVDs-by-mail service. But if you don’t get DVDs by mail, Netflix has made a key tactical decision to kill your queue — the list of movies that you want to watch. Once upon a time, when a movie came out and garnered good reviews, you could add it to your list, long before it was available on DVD, in the knowledge that it would always become available eventually. If you’re a streaming subscriber, however, that’s not possible: if you give Netflix a list of all the movies you want to watch, the proportion available for streaming is going to be so embarrassingly low that the company decided not to even give you that option any more. While Amazon has orders of magnitude more books than your local bookseller ever had, Netflix probably has fewer movies available for streaming than your local VHS rental store had decades ago. At least if you’re looking only in the “short head” — the films everybody’s heard of and is talking about, and which comprise the majority of movie-viewing demand.
Cu fundamentalele deteriorate, cu valuatia la cer dupa un an de cresteri ca din apa si cu technicals proaspat stricate, ce mai ramane ca NFLX sa se prabuseasca? momentum:
Ei bine, istoria ne arata ca atunci cand cade NFLX cade spectaculos. Am pus un ordin de cumparare PUT NFLX 325 de martie la $18.80, sa vedem daca se ia. Multam Fratiware!