Version: 2008

Comments on: Netflix battles Apple by eliminating online-watching limits

Online movie rental company is announcing the end of viewing limits for its streaming video service, as it tries to one-up Apple at the start of Macworld.

Add a Comment (Log in or register) (8 Comments)
  • prev
  • 1
  • next
by Azzuro10 January 14, 2008 1:02 AM PST
If iTunes charges $9.99 for a movie, it would be smart to allow users to rent the movie for $3.99 for 48 hours and then give you the option after the 48 hours to own the movie by paying an additional $6. Movies should be DRM free and with a resolution of 480p. (should be streamed so that you can start watching the movie several minutes after you pay for it).

But ultimately the media should be at least 10% cheaper than purchasing the DVD and have the same quality. Then we are talking! At the moment, it makes no sense to buy movies on-line when you can buy the DVD for the same price or cheaper...and you can burn it as many times as you like and so-on - and the quality is better as well (480p rather than "near DVD quality"). I mean if a DVD costs $9.99 at the store - you have to assume that the retailer is making at least a 20% gross margin and then you have distributor and manufacturing costs. That means that the movie studio is making $6-7 a DVD. Therefore, you need to sell the media at ~$7 a pop.

I don't know what the movie studios are worried about....they can make the same margin and see increased volumes! If they are worried about piracy.....well, its a little to late to be worried about that.
Reply to this comment
by Robocoastie January 14, 2008 11:49 PM PST
I highly doubt the retailer (usually Wal-Mart) is making a 20% gross margin on a $9.99 movie. There is little to no mark-up in high tech products which is why screwdriver shop computer places actually specialize in the service and upgrades - not the pc sale, they sell that at cost because they know they can't match the high volume capable chainstore.
by sharkfan1781110 January 14, 2008 2:06 AM PST
that's sooo true no one will need blue ray or a player for that fact. as long as some online storage company allows u to store these content on a server then we could even access it wherever there is internet which will shortly be EVERYWHERE and that'll be like having a DVD...and think about that with all files and music....did anyone say GOOGLE?
I wish i just had a little more money right now so when google hits $3,000 I would b able to benefit more than my measly one share i have right now
Reply to this comment
by youcangetholdofjules January 14, 2008 8:35 AM PST
Yeah online might work ok for the US market, but most of the rest of the world has either a) slow download speeds or is b) capped, meaning you can download more than a certain amount per month.
I think blu ray will be just fine.
by tyman703 January 15, 2008 8:13 PM PST
Saying that physical media (optical discs, etc) will be obsolete because of the Internet is a lot like saying email removes the need for the Postal Service - if you've ever ordered anything from Amazon, you know that just isn't true.

To be fair, you're saying I'll need at least 200GB per movie (size of a blu-ray disc), and with a modest library of 25 movies that's 5TB of storage per user. Current drive-space limitations and bandwidth speeds push your ideas *several* years into the future.

Enter the optical disc. At least until your dreams become a reality, these are going to be the backbone of the industry - so don't expect that Blu-Ray player of yours to disappear anytime soon.
by cxc21 January 14, 2008 6:05 AM PST
No competition for Apple users. Netflix instant view feature is Windows only and will never be available for MacOS since it is M$ DRM.
Reply to this comment
by catch23 January 14, 2008 11:16 AM PST
Unlike Apple, who won't license their DRM to anyone, Microsoft will license it to anyone. It being unavailable on the Mac has nothing to do with Microsoft.
So if there is enough interest, it would happen.
by billrubin January 14, 2008 11:03 AM PST
So now that Netflix has unlimited viewing, why won't they let other profiles view movies this way? I want my kids to be able to watch them but not logon as me.
Reply to this comment
(8 Comments)
  • prev
  • 1
  • next
advertisement

15 sites that went kaput in 2009

Web sites launch all the time, but they also shut their doors. We highlight 15 that bit the dust this year.

Top 10 news stories of the decade

Let the debate begin: Was the iPhone more important than iTunes? Was anything bigger than Google finding a great business model? CNET offers its list of the 10 most important stories of the '00s.

About News Blog

Recent posts on technology, trends, and more.

Add this feed to your online news reader

advertisement
advertisement