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?