Netflix is doing everything it can to get away from the logistics-heavy and costly DVD by-mail part of its business. As the company has plowed more and more resources into its streaming business, it has yet to encounter a direct competitor, says an executive.
According to Steve Swasey, Netflix’s VP of corporate communications, the company faces some rivalry from Amazon, HBO and Hulu, but none of these are considered direct competition. Says Swasey:
“There will be [competition] at some point–Netflix won’t run without pure competition for long . . . Right now, there are three models, and Netflix is running uniquely with the subscription model.”
The others fall into the pay-per-view (Amazon, Apple, etc.) or ad-supported (Hulu, YouTube) models, says Swasey.
Discussing what Netflix’s next moves would be as it acquires more direct competitors, Swasey is coy but offers a few tidbits:
“[The subject of ads] “has been broached but “every time we shoot it down.”
Swasey also implies that Netflix will remain focused on having a deeper streaming catalog rather than offering as many new releases as possible:
“We’re not so optimized for new and fresh, as much as we are for complete . . . We like to have complete seasons of the series rather than day-after broadcast.”
Who is shaping up to be Netflix’s “pure” competition, and when will Netflix begin to feel the heat? Is a deep catalog light on new releases going to sustain Netflix through the turbulent times that surely lie ahead?
(via Fast Company)