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Originally Posted by Shoe Lace
That article just sounds like one company is crying because Netflix is offering a solid service for a fair rate and they can't figure out a way to compete.
I don't disagree with this - but Time Warner (most likely the "crying" party you're referring to) both 1) distributes content in direct competition with Netflix's service and 2) creates content, something Netflix does not do.
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TV/Movie stations have been raping us since the TV was invented. We finally have a means to get quality service at a reasonable rate and this Bewkes fool is making it sound like the world is coming to an end.
Bewkes is again wearing 2 hats: one as a distributor (Time Warner Cable) and another as a content producer (e.g. HBO original series).
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If prices go up and people understand that they go up because other movie stations are forcing the prices to go up do you really think the end user will be happy to migrate to their service if it happens to put Netflix out of business?
Ultimately, people would migrate from Netflix at reasonably higher price points if Netflix doesn't carry content the people want to watch.
And no one is trying to put Netflix out of business really - from the content creator/producer viewpoint - all that's really being noted is that the studios that create popular content want to get their fair share of dollars from Netflix for the right to distribute.
Because it's clear now that Netflix is a force to be reckoned with (as they distribute directly to TV sets), and have a very large distributor footprint - the content companies, when they go back to the table to renegotiate, will demand more money - this will increase Netflix's cost structure. Most likely this will increase sub prices to consumers. And this trend is inevitable: basically, Netflix made alot of deals with content distributors before they got good penetration with their streaming device service directly to television sets. Obviously the value of the product to the consumer is much higher if it streams directly to TV sets, vs. merely as rentals or streaming only on the PC. Content producers absolutely should get higher licensing fees now that Netflix is focusing on streaming to the TV.
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I'm going to say no. You'll just see piracy become more common just like it was in the past before Netflix. I don't have stats to prove that movie piracy has gone down since Netflix was released but I would bet anything that it did.
This is a really solid point, and something all content creators must be careful of when deciding who to distribute with, and how expensive to make their product. Because ultimately, a world where everything is outrageously priced will push the consumer to piracy. And this is a point lost in Bewkes over the top rhetoric - but every studio is aware of this issue, and ultimately trying to keep the consumer happy while getting paid a fair market price.
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There's still tons of ways to improve movie streaming and delivery. They should spend less time crying and more time coming up with innovative ideas with features users want.
100% agreed - Time Warner Cable has completely dropped the ball w/r/t rolling out their own robust On Demand service. And they've had more than a decade to figure it out, while being in many, many homes.
They had a chance to own the customer when it comes to watching on demand content, they just f'ed up. Their set top box on demand is horrible, and they were way late to teh game in negotiating for online rights to distribute. It's ridiculous when you consider they are already in your home, as your ISP, and video distributor. Netflix owns them in the On demand space - pretty pathetic on Time warner's part.
-Al
Last edited by Aloysius; 12-20-2010 at 02:52 PM.