VOD : Netflix/Streaming Services

[OLD BOY]

That says to me that the price of the subscription is definitely not the issue. Thanks, Nialli.

[andy_m]

There are, of course, considerably more potential customers in the US.

[Kabaal]

Some of the big US ISP's throttle Netflix these days. The excuse is, as mentioned in the article, that it takes up so much bandwidth but i'd be surprised if dirty tactics doesn't play a large part of it as the same ISP's are also cable TV providers.

[muppetman11]

Originally Posted by OLD BOY

But with $3bn to spend in 2014, are you sure that Netflix cannot afford the latest series? I think it's more to do with rights issues, personally.

Having the money to spend is only one part of the issue , Netflix only has 2 million or so UK subscribers , why would they spend vast fortunes for the UK rights to newer shows with such a small user base. Maybe over time if the service were to grow massively this could change but it certainly wont be over night.

Compare Netflix's 2 million subscriber reach with a pay tv channel like Fox which is available on every UK platform , so that's over 10 million Sky subscribers nearly 4 million VM subscribers and both BT and Talk Talk near the million mark each.

[OLD BOY]

Originally Posted by muppetman11

Having the money to spend is only one part of the issue , Netflix only has 2 million or so UK subscribers , why would they spend vast fortunes for the UK rights to newer shows with such a small user base. Maybe over time if the service were to grow massively this could change but it certainly wont be over night.

Compare Netflix's 2 million subscriber reach with a pay tv channel like Fox which is available on every UK platform , so that's over 10 million Sky subscribers nearly 4 million VM subscribers and both BT and Talk Talk near the million mark each.

I think the likely strategy will be to build up their library with some good films, etc, to attract those extra customers. Look at the interest shown with House of Cards. Netflix will soon become the dominant player in this field, I think.

[muppetman11]

Netflix will continue with its original productions were it can show them in all its markets , paying silly amounts for the first run movie rights in the UK just doesn't stack up until it's user base grows considerably larger here in my opinion.

[OLD BOY]

Originally Posted by muppetman11

Netflix will continue with its original productions were it can show them in all its markets , paying silly amounts for the first run movie rights in the UK just doesn't stack up until it's user base grows considerably larger here in my opinion.

Sometimes you sustain a loss by spending more to attract new customers. Look at Sky with their Sky Atlantic channel. A huge loss leader if ever I saw one. Tiny audience, expensive and exclusive first run shows.

I agree with your basic premise, MM, that Netflix's income is not enough to cover the expense of first run material, but this is exactly what attracts new custom. If it wants to grow big quickly, this is the way to do it. I think their pockets are large enough to withstand it.

[muppetman11]

Originally Posted by OLD BOY

Sometimes you sustain a loss by spending more to attract new customers. Look at Sky with their Sky Atlantic channel. A huge loss leader if ever I saw one. Tiny audience, expensive and exclusive first run shows.

I agree with your basic premise, MM, that Netflix's income is not enough to cover the expense of first run material, but this is exactly what attracts new custom. If it wants to grow big quickly, this is the way to do it. I think their pockets are large enough to withstand it.

So long as it's cheaper than the current £8.99 I pay for first run subscription movies I don't care who wins them.

[Chad]

Originally Posted by muppetman11

Netflix will continue with its original productions were it can show them in all its markets , paying silly amounts for the first run movie rights in the UK just doesn't stack up until it's user base grows considerably larger here in my opinion.

http://www.theguardian.com/business/...ma-film-online

"Sky's deals with the major Hollywood studios – Disney, Warner Bros, Paramount, 20th Century Fox, Sony Pictures and Universal Studios – come up for renewal in 2017 and 2018."

"Analysts at IHS put the total value of Sky's movie deals at between £300m and £350m a year."

Imagine how much Netflix would need to bid in 4 years time to try and wrestle those rights away. It's going to be real expensive. SKY are paying out almost £30m a month on movie rights to the studios.

[harry_hitch]

Originally Posted by Chad

http://www.theguardian.com/business/...ma-film-online

"Sky's deals with the major Hollywood studios – Disney, Warner Bros, Paramount, 20th Century Fox, Sony Pictures and Universal Studios – come up for renewal in 2017 and 2018."

"Analysts at IHS put the total value of Sky's movie deals at between £300m and £350m a year."

Imagine how much Netflix would need to bid in 4 years time to try and wrestle those rights away. It's going to be real expensive. SKY are paying out almost £30m a month on movie rights to the studios.

Yup, it would be expensive if they went for all the studios. What is to stop them going just for just one, two or three studios though? (I am not aware of any reason why not, but am happy to be corrected.) Any of Warner Bros, Universal and Disney for example would be excellent additions. I can not imagine they will get anywhere near 20th Century Fox. Even if they have to put the price up by two or three pounds a month for all three potential studio deals, that would still offer tremendous value in my eyes.

If Netflix only nabbed the Disney rights, I imagine Netflix would become a very viable option for parents of small children who can't afford Sky movies or those who only have Sky Movies for the benefit of the children.

From the figures I have seen on here, Netflix appear to have the money currently to afford a loss on Netflix UK (if they could bid for movie rights currently) whilst building their movie portfolio and customer base over here, just imagine what financial clout they may be able wield in 3-4 years.

[passingbat]

Originally Posted by OLD BOY

Sometimes you sustain a loss by spending more to attract new customers. Look at Sky with their Sky Atlantic channel. A huge loss leader if ever I saw one. Tiny audience, expensive and exclusive first run shows.

I agree with your basic premise, MM, that Netflix's income is not enough to cover the expense of first run material, but this is exactly what attracts new custom. If it wants to grow big quickly, this is the way to do it. I think their pockets are large enough to withstand it.

It sounds to me as if you want Netflix to be what you want it to be --- a cheaper version of Sky Movies, rather than what Netflix has proved to be successful ---- a cheap price with loads of DVD boxsets, a few recent films and a lot of oldish, and not so well known films and recently, original content.

Netflix and Sky movies serve different distinct needs.

[muppetman11]

Amazon takes on Netflix with rebrand of LoveFilm video-on-demand service

Amazon is hitting back at Netflix in the UK by rebranding its LoveFilm video-on-demand service.

LoveFilm, bought out by Amazon three years ago in a deal worth nearly £200m, will be folded into the online retailer's British website next week, creating a one-stop service for digital streaming, DVD rental and books.

"Consumers will be able to shop for what they want, read what they want and watch they want anywhere at any time," said Tim Leslie, vice-president of Amazon Instant Video for the UK and Germany.

LoveFilm, which offers streaming of television series such as The Walking Dead and hit films such as The Place Beyond the Pines and Wall-E, will be merged with the Amazon Prime subscription service, which gives members perks including unlimited free delivery and borrowing up to 500,000 Kindle ebooks.

http://www.theguardian.com/technolog...film-tv-rental

[MutleyF]

Just say the Amazon rebrand on their website.

As a prime member, this is really good news for me

[nicknewark]

Maybe Amazon on Demand will arrive on TIVO, and will sit nicely next to Netflix. Hope so.

[muppetman11]

Seems a good deal if you join before 26th Feb

https://www.amazon.co.uk/gp/prime/pi...orepreannounce