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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)

14 Responses to “Netflix Exec: No ‘Pure’ Competition at This Point”

  1. Member [Join Now]

    When they do go streaming only and no more dvds by mail. I will not pay for b rated garbage. If you look good at there streaming movies there is more b rated junk then good movies. they have a good selection of tv shows.

  2. Visitor [Join Now]
    Tim James [visitor]

    Netflix’ streaming selection started off bad and keeps getting worse. I’ve been a customer for 3 years (almost 2 of those streaming) and the selection is awful, unfit to watch if you consider yourself educated. I spend much more time on Amazon VOD. It’s sad to see Netflix willingly walk towards mediocrity.

  3. Visitor [Join Now]
    Wintermute [visitor]

    steve-t & Tim James, y’all go spend your money elsewhere to be more up-to-date. I have a lot of catching up to do, and there are Oscar-nominated picks on Netflix for $8 or $10 a month. So take your “b-rated garbage” and “awful selection” talk and ram it up your candy asses. You’ll be looking for something affordable when you move out of your mama’s apartment.

  4. Visitor [Join Now]
    so true [visitor]

    If they don’t renew Starz they lose 50% of their streaming making a bad service worse.

  5. Member [Join Now]

    I have a hard time finding fresh good movies on their streaming choices also.

    Sure, for folks new to netflix or watching movies, there is a good selection.

    I’m on the edge of dropping netflix altogether. Will see if they start adding quality movies to the streaming part any quicker… even so… their HD streaming is very spotty at best. Redbox is down the street and at either Free or .50 (bluray with free code), or a buck, it’s just too easy to at least get dd sound that way and usually better PQ too.

    For the name calling and other BS… uncalled for.

  6. Visitor [Join Now]
    azooom [visitor]

    Netflix is great for streaming TV shows that I just completely missed while they where airing, ie Resucue Me, Bones, Dexter and is worth the $8 a month to me for the TV content alone.

    If they switch to streaming only it may force them to finally support Linux!

  7. Visitor [Join Now]
    Arnold [visitor]

    I value (or at least have valued) Netflix because of its deep catalog of DVDs. While there are some good selections available through streaming, it’s just not the same as the offerings of physical discs. If that was to flip, Netflix would lose a lot of its value for me.

  8. Visitor [Join Now]
    Brian [visitor]

    Why are people upset that Netflix isn’t streaming crap that bombed at the box office a few months (or weeks) ago? I just added the following films while going through their “New movies to watch instantly” list (some were recommendations, so they may not be on the “new” list):

    * The Girl Who Kicked the Hornet’s Nest (Since I’ve already streamed the first two parts of the Millennium trilogy)
    * Enter the Void
    * A Prophet (Un Prophète)
    * Smash His Camera
    * Revolution OS
    * Gonzo: The Life and Work of Dr. Hunter S. Thompson
    * Bronson
    * La Femme Nikita (The original French film from 1990)
    * Wasabi
    * Merantau
    * Ip Man
    * Martial Arts Master: The Life of Bruce Lee
    * Enter the Dragon
    * The Chinese Connection
    * Kevin Smith: Too Fat for 40
    * Black Dynamite
    * The Good, the Bad, the Weird
    * Don’t Look Back
    * Tell No One
    * Following
    * Man Bites Dog
    * Surveillance
    * Seven Days
    * Dumplings
    * Dead Snow
    * Dead End
    * Cronos
    * Spartacus: Blood and Sand (The Complete First Season)
    * Primeval: Seasons 1-3
    A Bit of Fry and Laurie: Seasons 1-4

  9. Visitor [Join Now]
    Jo Anne [visitor]

    Netflix offers a lot of really interesting films and if I had nothing else to do with my life, could easily spend all my time watching. However, I DO wish they’d offer more new stuff. I don’t have cable so have no access to TV. I’d love to be able to watch some recent TV shows. I’d love to be able to watch Episode 1 of Season 11 of CSI, or Episode 1 of the new Hawaii 5-0 and am bummed that I can’t.

  10. Visitor [Join Now]
    John [visitor]

    I bought a ROKU box with the intention to only stream movies. Im not planning to upgrade to mailed movies and never intend to. When I first got Netflix , I was dissapointed that they didnt have what I wanted. Then , my second choices were mail only. I was ready to cancel but found many movies worth watching and its a great value to have starz play as well ( spartacus fan). Im ok with B-movies and hope their streaming content gets better with the deal with EPIX or from potential future competition. I would suggest if you dont like what is offered at this time…suspend your membership for about 90 days and let them them catch up. Like many, I want more but still happy there is a NETFLIX like the other 20 million subscribers.

  11. Visitor [Join Now]
    tuna [visitor]

    Redbox Taking on Netflix With New Digital Streaming Movie Service

  12. Visitor [Join Now]
    Milo Mevers [visitor]

    Good ideas, you might wannt check some online tv streaming here too, that’s a pretty cool one.