"The brutal reality is Netflix’s bargain days for streaming movies and television is coming to an end."
December 9, 2010 5:45 AM Subscribe
Is Netflix Streaming Its Way Towards Disaster?
In the wake of last month's price hike
, Edward Epstein (author of The Big Picture
and The Hollywood Economist
) explores a few issues with Netflix's turn toward streaming video. The licensing deals Netflix cobbled together before studios fully grokked the value of streaming
are expiring in the next year or two, outlets like Amazon
and HBO are starting their own streaming services, and the right of first sale, which allows Netflix to buy DVDs and then rent them over and over, doesn't apply to streamed content. Via this post from Slashfilm
, which adds more links
From the Reuters link:
Studio executives have expressed disbelief over some of Netflix's Hollywood content coups, like its 2008 deal with Liberty Media Corp-owned Starz to offer films from Sony Corp and Walt Disney Co for $20 million to $30 million. That deal put Netflix's streaming service on the map for a fraction of what cable operators had paid Starz.
"The deal Starz did to give those movies away for $30 million obviously makes no sense. There's a day coming shortly when that deal expires. How do Starz and Netflix address the next deal?" News Corp Chief Operating Officer Chase Carey said this week at the Reuters Global Media Summit.