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Netflix: DVD Biz to Peak in 2013

Netflix’s DVD by-mail business has fewer than three years of growth left in it before it peaks and goes into a protracted decline, according to a “Business Opportunity” slideshow put out by the company. Netflix plans to “gain and maintain leadership” in the streaming sector, according to the slideshow, and become the dominant player in the business of “consumer-paid streaming of movies and TV shows.”

Netflix spent more than half a billion dollars on postage and handling last year alone. As the company’s by-mail service peaks and begins its slow decline, millions of dollars formerly earmarked for postage can be put towards licensing content, a move which Netflix hopes will help it become “one of the world’s largest licensors of movies and TV shows” by 2020.

It’s going to be a tough fight for Netflix in the increasingly crowded streaming marketplace, but the company seems confident that it will not only survive, but will thrive as physical media declines and streaming takes over.

Insiders, does Netflix’s plan to increase the amount of content on its streaming service encourage you to subscribe? For those of you who already subscribe, is your ratio of DVDs to streaming changing at all?

(via NewTeeVee)

6 Responses to “Netflix: DVD Biz to Peak in 2013”

  1. Visitor [Join Now]
    [visit] [visito] [visitor]

    Per the presentation, Netflix appears to be giving up the “new releases” market and is focusing on streaming and DVD delivery for TV and catalog titles.

    In Salt Lake City, Redbox’s leading market, Netflix subscribers don’t use Netflix for new releases.

    It looks like this market will belong to Redbox as soon as Blockbuster goes Tango Uniform.

  2. Visitor [Join Now]
    PMB [visitor]

    The netflix “Watch instantly” sucks, and is getting worse. I am considering dropping netflix for that reason. They recently did a update and it is filled with homosexual movies. I have gay friends and have no problem with it, but 20% gay selection really? And about 90% of the remaining 80% are old and i have seen them 1000 times. They dont have any new releases from this year or last year, that were top 100 sales. They shouldn’t market it as something that its not.

    If there was competition i would drop it in a heart beat.

    • Visitor [Join Now]
      Farva [visitor]

      I have to agree with you.

      I recently resubbed to Netflix (still using Redbox for New Releases) to get caught up on some missed TV shows. I spent the other night browsing through every available Instant selection to pick out titles to watch in the future…and when I was done I had a total of only 25 titles in my Instant Queue.

  3. Visitor [Join Now]
    Joe [visitor]

    I agree they need more titles for streaming! I think anything older than 1 year or if it’s not a popular dvd rental then move it to the streaming side!

  4. Member [Join Now]
    Barnbaby [barnbaby]

    At first, I felt that streaming was not the ideal way to watch a movie. After going Blu-ray with my Netflix offerings, it wasn’t until recently that I decided to try the streaming service, since it’s a freebee for me anyway.
    Well, I’m sorry I waited so long to do it. It was a no brainer to set up on my PS3, and has worked flawlessly. Video quality is quite good; about a third of my selections are in HD. And some of them aren’t yet available on Blu-ray. The only thing lacking, is content; as in “quality of”. However, this is improving daily. There are plenty of first class movies available. Still, I never realized how many direct to DVD movies there are out there.
    But I’m not chucking my Blu-rays or DVDs anytime soon. I am one of those types who prefers the “hard copy” of my favorites. I recently viewed the Netflix stream of “Guns of Navarone” in HD. It was excellent. But when the Blu-ray comes out, I will be there with cash in hand to add it to my collection.