http://www.businessweek.com/magazine/content/10_39/b4196021822248.htm
Netflix is growing quickly in its popularity and size. Their deals have begun to put blockbuster out of business. Now the company is beginning to encroach on the premium cable market with their ability to stream movies online. 61% of their customers are now streaming movies via the Internet. One research analyst notes, "Adding a premium TV channel to your cable subscription can cost $10 to $15 a month, in contrast to Netflix for as little as $9 a month."
HBO does plan to battle it out with Netflix online, apparently offering new online services in early 2011. However, as more gear such as the Apple TV, iphone and ipad become compatible with Netflix, Netflix is well on there way to rivaling the premium cable channels.
I know several people who have already reserved the Apple TV in order to stream Netflix into their living room. I am liking the competition that Netflix is posing to cable premium channels. I myself do not have any premium channels because they are too expensive for me, but I would certainly like to. If Netflix becomes a real rival, and I think they will, then perhaps I will be able to afford the channels that I now covet. Competition, especially online, will make all the premium channels more competitive and maybe even innovative. I am eager to see how HBO plans to counter Netflix's growing popularity online.
I have to say I am a big supporter of companies like Netflix that are coming in and breaking the bundle. I think most of us are tired of the age old tradition of taking TV packages where you do not like half the channels, but are forced into getting it because that is your only option if you want that channel. Will this change ever occur? I think so. With competition from companies Netflix cable/dish companies will be forced to break the bundles and lets us create our own. This is an option that I am waiting for dearly.
ReplyDeleteI agree that Netflix has completely changed the video rental market and the way I personally watch movies and TV shows. As a recent subscriber to Netflix, I have experienced first hand how convenient the service actually is. Instead of watching TV shows week by week, I now tend to wait until they are available on Netflix and watch them all at once on my own time. And with movies I have a queue of about 60 movies that I will watch whenever i get the chance, send back and get the next movie on queue and repeat the cycle. As an extremely happy user of Netflix, I expect the company to become even more successful and drive Blockbuster completely out of business once everyone realizes how easy Netflix really is.
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