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horseraceFresh off a series of comments about the semi-imminent demise of DVD as its primary format, Netflix CEO Reed Hastings has called the growing streaming video market “wildly competitive”. Hastings’ comments came this week at the Magazine Innovation Summit in New York. The summit brought together executives from the publishing world, another industry that has seen unprecedented upheaval and uncertainty in recent times.

In his keynote address, Hastings admitted that his company is in an “enviable position” compared to many magazine companies:

“’The fortunate thing for us is video stores are closing, meaning more people are renting online,’ Hastings said, pointing out that unlike, say, BusinessWeek, its competitors on the DVD side of the business are few and ‘fixed’: Blockbuster and Redbox.”

Streaming is a completely different story, Hastings said, stating that the market is becoming “wildly competitive”. Nevertheless, streaming remains extremely attractive to Netflix because of the enormous amount of money the company saves by not paying postage on digitally delivered films. Hastings revealed that his company will spend quite a bit on stamps next year: $600 million. This makes the U.S. Postal Service Netflix’s biggest vendor, “larger than any one studio,” according to Hastings. Another benefit to streaming is that it would be unaffected by any potential delivery schedule cutbacks by the USPS.

As competition heats up and Netflix and other content providers inch ever closer to streaming-dominated models, will you mourn the slow demise of physical media or welcome it?

[via The Wrap]

11 Responses to “Netflix CEO: Streaming Video Market “Wildly Competitive””

  1. Member [Join Now]
    alans613

    For streaming to catch on Netflix will have to stream ALL of their collection instead of just certain DVDs as they do now. So far maybe one or two of my Netflix DVDs have had streaming available. Also, I don’t know how many people would want to sit at a cramped computer watching a 2-plus hour movie. As i’ve said before, I see streaming as a nice add-on attraction but I don’t see it totally replacing physical DVDs anytime in the near future. Also for streaming to grow more folks would have to think about buying a device to hook up to their TVs to stream to their home theater systems from the Netflix database, but I don’t see that happening with the tough economy right now.

    • Visitor [Join Now]
      Min [visitor]

      For me, Netflix streaming video on computer is perfect. I watch the streaming videos all the time. Not up close though. I like laying in my bed to watch movies. I can pause the movie whenever I need to. There are no commercials. Best of all is that I can choose what I want to watch, unlike cable (you get the package, but not the choice of channels line up, and I don’t watch enough television to make it worth the money). I do wish they had more variety in the streaming line because I have watched pretty much everything there is of any interest. I watch a LOT of movies, and a wide variety of genres.

      Some people may have to purchase a box of some sort for streaming to their television, but a lot of people already have equipment they can use. All on has to do is check on Netflix’s web site to see. Hint: game stations

      Also, in our economic situation, Netflix is, by far, less expensive than cable. Whichever membership package you choose includes streaming to your computer as well as television (if you choose).

  2. Visitor [Join Now]
    Carson [visitor]

    I found a way to get this for free…
    A friend was visiting me and she has an unlimited Netflix subscription, she logged into her account on my TV Computer and clicked ‘remember password’ and now I have full access to all of Netflix Streaming collection in my living room for as long as she is a member….or until I reformat my C drive.
    Netflix allows this because they will assume users may have multiple computers or IP addresses, so there is no way for Netflix to stop it, is there?
    True, sharing passwords means the account owner will have to trust that the users are not screwing with their queue of movies…which is why no one will post their password online, but I don’t see why people won’t share with their friends…

    • Member [Join Now]
      randrew1

      can i have your password???

      • Visitor [Join Now]
        Carson [visitor]

        I don’t know it, she typed it in and Firefox ‘remembers’ it. Plus, its not mine to give out…and I don’t think you will find someone that will give theirs out to someone they don’t know.

        • Member [Join Now]
          Mark [rb123456789]

          It’s absurdly easy to look at the saved Firefox passwords, so that’s no excuse. But obviously you would be breaking a trust by giving it out.

          Plus, Netflix limits the number of different devices which can access one account, to four I think. People have learned the hard way that when they try to use a fifth (over the course of a year, not just simultaneously) it is rejected and it may be up to a year before the previous devices drop off Netflix’s active list. (Though I heard that has been reduced to a month now.)

      • Visitor [Join Now]
        Min [visitor]

        I can give you one, but it prob won’t work. lol Seriously though, you can do like a friend of mine and I do, and share a membership.

  3. Visitor [Join Now]
    slidecage [visitor]

    also you need a very high speed hook up to watch the movies.. unless you want them to look like beta tapes : )

  4. Member [Join Now]
    margaret webb [margaret-webb]

    Well just like Red Box would you or any one like to see a end to the way they do business because too many users are not being honest? I don’t see so much wrong being if you were to loan a dvd to someone to see and then you return it but to share your log in name etc is dishonest.