Netflix, which currently dominates the streaming industry, may face a deadly threat from TV everywhere platforms offered by premium TV channels, according to a new report.
The National Inflation Association (NIA) has released a report stating that Netflix’s future is in jeopardy if it is unable to compete with premium TV channels when it comes to desirable content. Netflix’s content costs over the last few years have skyrocketed from 12 percent of revenues to 50 percent of revenues.
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From the report:
“If Netflix is going to keep their monthly subscription fees near their current low levels without implementing the same price increases that cable TV companies have been forced to pass onto their customers, Netflix in the near-future will only be able to offer older movies and TV shows that are no longer in high demand . . . There will be no reason for Netflix to exist in the future.
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With its content costs streaking upwards, do you think Netflix will be forced to increase prices anytime soon? The company caused a small stir the last time it tried that, and it will be interesting how Netflix chooses to cope with the swiftly changing streaming landscape.
[via Home Media Magazine]
The Crap Cable Co’s will never be able to keep up with NetFlix. NetFlix can up the price a few more bucks. And still put the Cable people to shame. 95% of what is on TV now is CRAP! I have been with out Cable TV going on two years now. And don’t miss a thing. Any shows that i want. And that is very very few. I can get on DVD when they come out. Why pay $85.00 a month are more? No need. Netflix at $8.00 a month are a bit more is good for me. And I like the old shows on NetFlix. Rock on Netlix.
Sorry Cable. With them you must have this and that. Rent a Box. And, And, And. On it goes! Bye Cable!
I wish netflix had internet service and more updated tv shows. Cable already stated that they will not go down on prices, they will keep rising the prices instead.
Directv is way better than cable anyway. Netflix has more variety.
I thought netflix already did offer ‘older movies and TV shows.’
I think there’s room in the market for more variety. I think Netflix’s price point is what is most attractive. If it went up to even $9.99 a month I’d start thinking more about if I would keep it. Others have said they could offer different Streaming levels with newer content for movies costing more. I probably spent more than alot of people on Blu-ray and theatre. I often rent from Redbox but usually with codes and spend the rest of my time watching Directv. I don’t stream too much but have had Redbox for a while now. I think cost is going to be my biggest factor as I’m willing to spend less and prices are gonna go up. I think for those who don’t have cable or satellite and don’t buy stuff, then I image Netflix is a great service. I don’t see people leaving as it’s easier to use 1 service and 1 low cost package
Maybe netflix will have to revert back to primarily a dvd by mail company…
the reason they seperated the streaming and dvd plans was because the dvd/streaming combo plan (mainly the 1 dvd at a time plan which most people had) was costing them too much money. they split their plans up to try to concentrate more on streaming and to stop loosing money on the dvd part of the 1 dvd/streaming plan.
The thing is that with netflix you pay just 8 dollars plus internet but its nothing compared to clable charges and if you want premium channels they’re expensive i used to pay at least 100 dollars its true they have good content but still not worth the money and even u can get the hbo cinemax and showtime go apps which have a larger content compared to the channels you still need to pay extra for internet which its too much and if you really need internet at your house for work or school anyways, 8 dollars a month its a great deal
What you say is true- at least what I think you’re saying. You should use some punctuation next time as it helps readers understand what you’re trying to say.
Streaming is the future. Mechanical disc drives with moving parts are the past.
Whoever offers the best streaming content for the lowest cost will prosper.
Netflix is doing the best job at present. Amazon Prime streaming is second, but some of their pricing is silly–more than a disc. Hulu with boring, repetitive commercials sucks, Vudu is too expensive.
Netflix needs to offer a premium service that allows streaming of newer content that you can get from Amazon and iTunes. Whether it’s a per-use fee or an upgraded monthly fee that gives unlimited streaming of this content. I’d pay for that and kill cable all together. Netflix is missing gout by not offering this kind of upgraded service.
i think a tier type service would be best, have a “silver” “gold” and “platinum” plan
i would pay $15-20 or more a month if all their titles were streaming
but the issue is getting streaming rights from the publisher or production company. just like on hulu how some things can be watched only on computer but not on your TV. this is because of the publisher or production company want you to buy the DVDs since a season of a TV show can me over $60 in some cases, how much do you think they would make if i watched it online through a streaming service?
My cable bill has sky rocket in the last few months. Netflix would have to go crazy with pricing to come anywhere close to cable fees.
I wish the times was running out for the Cable Companies. I would be just fine never watch Comcast cable ever again.
No !!!! Netflix will be around for a long, long, long time. I like it because of all the older movies. For instance, my local theatre has 8 movies a week and I don’t know anyone who goes to the movies 15 or so times a month so some of those movies will eventually be “old” movies. I find zillions of movies I have never seen before on Netflix.
Netflix only caused a stir with their last price increase because the CEO sent out an asinine email telling people it was going to be cheaper and was good news. Had he been honest and explained the pricing issue in clear terms people would have given less of a damn.
There would have to be a service upgrade for a pricing change to sit well with people. Give me an option for my wife and I to rate movies independtly or have family profiles so “Bridezillas” NEVER shows up in my “Top Ten” again and only hers without needing two different accounts.
The pricing is the big issue. As people above said the pricing on Amazon and Vudu is pretty ridiculous. I can usually buy the BluRay on Amazon for less than the new On Demand price. Charge something like iTunes perhaps, a dollar a view.
Also, when Netflix does their financials for the year they should sort out a price that’s reasonable without being too low to screw them and stick with it for a while. That was the other thing that ruffled feathers is that they raised their prices and then went right back and did it again.
I’ve cancelled my cable and used Netflix for almost a year… It was great at first, but now I’m starting to reconsider. The prices for DVD’s by mail is a little much for my taste, if I want a DVD that badly I’ll be happier to go out and buy it myself. The streaming options have gone downhill too, I was under the impression new content would be added at a faster rate. Over half of the new additions when it comes to streaming is crap that I’d never watch anyway and it seems to take FOREVER to update new seasons of the shows I watch.
I’d be happy to pay more if it meant the service was better… I love the idea Roger suggested about a tire type package option. I would definitely pay between $15.00-$20.00 for updated streaming content. Hulu is a joke and Amazon is too pricey in the long-run. Crackle is alright, I don’t mind the short commercial interruptions from time to time, but they have the same issues as Netflix. Hey, at least Crackle is free.
I think I might go with Directv or Dish Network from now on if Netflix isn’t going to make some sort of change. Hell, I only paid $30.00 for cable when I had it and I was able to find something worth watching any time. Sure, I’m not loosing anything by paying $8.00 a month for Netflix streaming, but I’m not gaining anything either. Had I known this before using Netflix, I wouldn’t have even bothered. I do wish they’d implement some sort of changes to bring more content… If not, I won’t be a subscriber much longer.
With Netflix we were unable to stream successfully. The speed in on dsl was so slow it would just keep stopping to load and then restarting. So we dropped our landline, went to cell phone only, went to Charter for internet only, and then got the Blockbuster add on from Dish. Now we get sent a movie from the blockbuster queue, watch it , then take it to the Blockbuster store to trade free for a movie of our choice. When that’s returned, another dvd arrives in the mail. If we want an additional movie during the week, we go get a Redbox movie.
Netflix prices are very reasonable, sure they could update a little quicker, but they do add new content fairly often, you just usually have to search it out. As far as having streaming problems, that’s all on your internet provider. I have AT&T Internet (dsl which just switched over to U-verse) and I’ve never had a problem with streaming interruptions and we have Netflix on 3 tvs that are usually being used at the same times. About 5 years ago before dumping Time Warner we had internet issues, but I have always loved AT&T service and prices.
Netflix isn’t going anywhere! I love Netflix and I couldn’t be a more satisfied customer. I’m not a TV show fan anyway so cable lost my business several years ago, anything that I do want to see I can get from Netflix or a local library, so even if I do have to wait a little longer to see it, so be it. I’m not losing hundreds of dollars a month paying ridiculous prices for cable or satellite! I don’t care how much money you make, if you pay that much money to watch TV you’re an idiot!