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Netflix, Blockbuster, and the future of all media
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Halen



Joined: 09 Jul 2006
Posts: 1883
Location: England

PostPosted: Thu Sep 22, 2011 11:29 am    Post subject: Reply with quote

Get a wider view folks. You're a very specific hyper-technologically-aware subset of the movie watching/game playing population.

I own 2 digital games. One of them I bought via Steam (portal), because it was a pound. The other one (fable2) was already on my xbox because someone else had already bought it and it was stored on there.

Every other movie and game I own I bought myself, and it's a physical copy. And I'm reasonably technologically aware.
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Mr Gary



Joined: 30 Apr 2009
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PostPosted: Thu Sep 22, 2011 11:46 am    Post subject: Reply with quote

Ded, don't you mean POW and itd be delivered to your door within 48 hours or so?
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DeD CHiKn



Joined: 04 Aug 2006
Posts: 10227
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PostPosted: Thu Sep 22, 2011 11:56 am    Post subject: Reply with quote

It's more like 24 hours, but even still I don't want to watch it in 24 hours, I want to stream it. I'm in the mood for it now, that's why I signed up for a streaming video thing.

I'd rather just own the effing DVD if I was going to have it delivered.
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Darqcyde



Joined: 11 Jul 2006
Posts: 10662
Location: A false vacuum abiding in ignorance.

PostPosted: Fri Sep 23, 2011 12:06 am    Post subject: Reply with quote

Apparently it's been suggested that Reed Hasting's decision is a maneuver to setup a future merger with Amazon:
http://www.zdnet.com/blog/btl/netflix-split-to-set-up-amazon-streaming-merger/58743

Quote:
Netflix CEO Reed Hastings may have a trick up his sleeve as he separates the streaming and DVD-by-mail businesses: A sale to Amazon.

That’s the theory floated by Wedbush Securities Michael Pachter on Thursday and the idea makes sense.

Pachter upgraded Netflix shares to an outperform from underperform. The analyst argued that Netflix formed Qwikster so it can be spun off eventually. From there, Amazon can easily buy Netflix, which would be a streaming business.

In a research note, Pachter said:

In our view, Amazon has always wanted to be in the streaming business, and has been constrained from buying Netflix due to tax considerations. The split up of Netflix’s business addresses the state sales tax issues raised for Amazon in having a “nexus”. If Amazon were to acquire only Netflix’s streaming business, it could triple the size of its content library, and gain traction as an industry leader. Netflix streaming has current content deals that provide it with access to movie content during the premium cable TV window, and Amazon has the financial resources to secure additional streaming rights, including Starz content. Netflix’s financial flexibility is quite limited, while Amazon’s is virtually unlimited.

The tax issue is that an acquisition of Netflix’s DVD business would give Amazon more sales taxes to collect.

Pachter explained:

One of the impediments to Amazon’s purchase of Netflix outright is the state sales tax rules. Under the rules in most states, any company with a physical presence in that particular state (a “nexus”) is required to collect sales taxes for all retail transactions in that state. Amazon has carefully avoided nexus with virtually every state that collects sales tax, providing it with a significant pricing advantage over its brick-and-mortar competitors. Should Amazon have purchased Netflix’s business outright (including the DVD-by-mail business), the company would have found itself subject to sales taxes in virtually every state that imposes sales tax, due to Netflix’s extensive network of distribution centers. Accordingly, we never thought that Amazon would seriously consider purchasing Netflix, as such a purchase would severely (and negatively) impact Amazon’s core retail Internet sales.

If Pachter’s theory pans out, Netflix’s separation of its DVD business makes more sense. Initially, Netflix looked like it was botching the customer user experience and annoying users. All true to date. But if Netflix, which will be the streaming business, becomes a takeout for Amazon, the separation and angst would be worth the trouble.


Full analysis and breakdown

http://www.zdnet.com/blog/btl/netflix-wrestles-with-innovators-dilemma-customers-pan-qwikstupid-idea/58327
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andrew



Joined: 13 Jul 2006
Posts: 4495
Location: the raging sea

PostPosted: Fri Sep 23, 2011 12:09 am    Post subject: Reply with quote

That analysis is--to put it mildly--fucking stupid.
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Darqcyde



Joined: 11 Jul 2006
Posts: 10662
Location: A false vacuum abiding in ignorance.

PostPosted: Fri Sep 23, 2011 12:22 am    Post subject: Reply with quote

Sadly it still seems more grounded in logic than the approach that Hastings has taken this past year. I'm not saying he made bad decisions btw (that's a different issue), I'm saying the way he delivered news of his decisions to his customers could have been much better.

I don't think other people would have gotten the same flak that Hastings has gotten but he is not most people. The lore of how and why he started Netflix is fairly well known and has been repeatedly brought up in interviews I've read with him. As a person who founded his company based upon the notion that he was being treated poorly and unfairly as a customer he is going to be more rigorously scrutinized for how he treats his customers..
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Mr Gary



Joined: 30 Apr 2009
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PostPosted: Fri Sep 23, 2011 12:27 am    Post subject: Reply with quote

DeD CHiKn wrote:
It's more like 24 hours, but even still I don't want to watch it in 24 hours, I want to stream it. I'm in the mood for it now, that's why I signed up for a streaming video thing.


And this is why our society is fucked up beyond belief (yes, DeD, because of YOU!)

This thing that took 9 to 12 months to make, if not longer, that I may be interested in enjoying better be here right now or else I'mma stomp my feets and suck my thumb and say that I never want it and I hate it and I hate you Mum!

(Not bashing you specifically DeD, but christ can't people hold their fuckin' weak piss for a day or two?)
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DeD CHiKn



Joined: 04 Aug 2006
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Location: Baltimore, Maryla*gunshot*

PostPosted: Fri Sep 23, 2011 12:52 pm    Post subject: Reply with quote

Mr Gary wrote:
(Not bashing you specifically DeD, but christ can't people hold their fuckin' weak piss for a day or two?)


Normally I'd agree. Only this time the service I signed up for is "instant" with a "huge selection of movies etc.". However the instant service doesn't ever seem to have the thing I want to watch.
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Darqcyde



Joined: 11 Jul 2006
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Location: A false vacuum abiding in ignorance.

PostPosted: Fri Sep 23, 2011 4:20 pm    Post subject: Reply with quote

DeD CHiKn wrote:
Mr Gary wrote:
(Not bashing you specifically DeD, but christ can't people hold their fuckin' weak piss for a day or two?)


Normally I'd agree. Only this time the service I signed up for is "instant" with a "huge selection of movies etc.". However the instant service doesn't ever seem to have the thing I want to watch.


Or how if there's multiple parts the first is only available on DVD. This also applies for movies where the first was good and all the sequels sucked, the first is only on DVD and the rest instant. I learned this when we realized we no longer had a working VCR and didn't own the Matrix on DVD.
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DeD CHiKn



Joined: 04 Aug 2006
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Location: Baltimore, Maryla*gunshot*

PostPosted: Fri Sep 23, 2011 4:23 pm    Post subject: Reply with quote

The only thing I use it for are stand ups now, but I've exhausted all the good ones.
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