Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.
When streaming video was new, Netflix was able to secure contracts with the likes of Warner Bros. Studios and MTV to license big TV and film catalogues for about $5 million to $10 million per year. This time around, Pachter says, those costs could increase more than tenfold.

^^Guessing this has to do with it.

 

Originally Posted by thereraise

sooooo gay, guess they are struggling in these tough times and dont have a stock price of $291 a share

I know you're being sarcastic, but its got nothing to do with whether or not they are struggling. All it comes down to is getting the maximum price that the market will tolerate. When a company is new, especially pioneering a new niche in an existing market, they will often sell their goods at or even below cost, to make a name for themselves and to earn market share.

Now that they have 10's of millions of subscribers and have essentially put retail stores like Hollywood video and Blockbuster out of business, they can start to test the limits of what the market will actually pay for their product. Basically its a combination of the two quoted posts below. Cutthroat pricing to steal market share from or eliminate competition, plus attempting to keep margins cushy as costs increase massively from their suppliers.

 

Originally Posted by Milo

Standard predatory pricing model . . . keep it low until your competition goes under, then jack it up to recoup your losses once you're the dominant player in the market.

This...

 

Originally Posted by Justman

Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.
When streaming video was new, Netflix was able to secure contracts with the likes of Warner Bros. Studios and MTV to license big TV and film catalogues for about $5 million to $10 million per year. This time around, Pachter says, those costs could increase more than tenfold.

... and this. Its no different that the reason why I pay $120+ a month for basic cable and internet. Its not because thats what its worth, and its certainly not because thats what it costs. Its because thats what the local market will tolerate, considering the industry is basically run as regional monopolies.

I don't watch a ton of movies, but when I decide to, I like the convenience of just going to get the exact movie I want. I don't think Netflix has a great selection of movies you can watch instantly. For example, I out-of-the-blue decided a couple months ago that I wanted to watch Slumdog Millionaire again. It wasn't on the Netflix instant watch list. My local Blockbuster closed awhile back. So, we ended up just buying a copy from Target or Best Buy or somewhere. I don't understand why actual video stores have gone out of business. Who wants to wait on a movie they want to watch for days or weeks? Bleh. I don't get it. There's something to be said for being able to just walk in and get the movie you want. It's not that hard to return a movie, lol.

Meh. Things just keep sucking worse and worse the older I get, lol. Maybe someone will invent a time machine and I can just time travel back to 1980 one day :) People are so freakin' lazy anymore. "I can't get off my couch for five minutes to go to Blockbuster and drop a DVD in the drop box. That might require some movement or the exertion of some energy. Oh noes!!!" :P

Actually, it seems very odd that people like me don't exist anymore when it comes to this issue. W're such a society of instant gratification, you'd think people would really want to be able to watch a movie they want to see instantly without having to wait for it to come in the mail. Things that make you go hmmmmm...

Meh, too much crying.

$8/month to watch unlimited streaming movies on your computer. $8/month to get them delivered to your house if you want it.

BFD. It's hard to get much cheaper than that given the momentum of the market towards more at-home streaming delivery, imo. Their a la carte pricing structure makes more sense.

maybe it's just a difference in tastes. Netflix instant undeniably has a substantially larger menu than any video store. I've seen a number of really good movies that I never would have rented. I'm generally not all that interested in new releases so the instant vs. mail distinction isn't an issue for me too often. Removing the drive the video store isn't the advantage of Netflix for me. It's the larger selection and that there's so much more information about movies and they're divided into much narrower genres. The selection process is just so much easier.

I watch about 5 movies a month on there so anything under $20, I still feel like I'm getting a deal.

I think people got tired of video stores raping the shit out of them. I remember in the hayday, a video-rental was $4.99 or higher, and that was for I think 2 days. There was all sorts of bullshit charges, too. One day late, $2 or $3, then more for each day. Plus didn't Blockbuster not let you rent out more than 1 movie at once? I don't remember.

Then they finally got smart and did away with late fees.... except it was just- you own the movie and pay a 150% premium on it. So if you forget to return the movie, no worry. You just owe blockbuster $21.99 and now it's yours.

I always figured Netflix would have gotten bought out years ago once they started taking off. I guess now they just are trying to squeeze the juice for all its worth.

buy an HDMI cord and learn how to use the internet imo

 

Originally Posted by voorh33s

buy an HDMI cord and learn how to use the internet imo

Can you watch 1080p on a 70 inch tv using torrents etc?

 

Originally Posted by TheSilentBob

You no; some of us, yes.

Awwwwww. How cute

 

Originally Posted by Mr. Blonde

Fucking redbox. I dont have a problem watching it the day I rent from them...I have a problem returning the damn thing. I sit it on the counter and say "got to go to redbox"...then later on that night I go "Its just a dollar, I'll go tomorrow. Next thing u know I owe 8 bucks for a movie that wasnt worth 3. Redbox needs a mail service....it costs me more in gas to drive the 10 miles to return the movie than its worth

if redbox had mail service would u pay $7.99 a month for it?

 

Originally Posted by dolphin13

Can you watch 1080p on a 70 inch tv using torrents etc?

yes sir that's what the hdmi cord is for

 

Originally Posted by Niceguy

So steal?

Sweet suggestion.

this is terrible. they just raised prices back in november. how many times will they raise prices before their customers begin a major exodus?

this is terrible. they just raised prices back in november. how many times will they raise prices before their customers begin a major exodus?

 

Originally Posted by keylight

several more times? it's still much cheaper and a better service than the alternatives.

Yeah, people seem to be not thinking about, or plain ignoring, this fact; simply because they gave you an incredible deal at $10 for both, doesn't mean that $16 is a rip-off...it's just more than you originally paid, it's called supply and demand.

Also, new news re: Netflix today; no more new NBC shows streaming, now they must be one season old to be available instantly (similar to new Starz stuff being available after 90 days).
http://www.avclub.com/articles/netfl...odes-of,58873/

 

Originally Posted by Mr. Blonde

Fucking redbox. I dont have a problem watching it the day I rent from them...I have a problem returning the damn thing. I sit it on the counter and say "got to go to redbox"...then later on that night I go "Its just a dollar, I'll go tomorrow. Next thing u know I owe 8 bucks for a movie that wasnt worth 3. Redbox needs a mail service....it costs me more in gas to drive the 10 miles to return the movie than its worth

 

Originally Posted by OneM24

I will probably still keep both for 16/month. Redbox fees would kill me, because i dont bring movies back in a timely manner. Its worth the 6 bucks to not have to leave the house, and obv for late fee reasons as well.

 

Originally Posted by MattElsarelli

Your closest redbox is 10 miles away??? Thought the whole convenience of it was the fact there is a location at every intersection, guess thats not every city though.

Matt has this right. You guys need to get out more seriously. Here in fucking Kansas of all places there is a red box every way I go. Get out more and stop being so lazy