In what will certainly be a watershed moment for a company that made its name as a by-mail renter of movie discs, Netflix says that its streaming business margins will surpass that of its DVD business before the end of the current quarter.
Among the reasons for the decline in disc margins relative to streaming is the recent uptick in first-class postage, as well as a seasonal increase in by-mail rentals.
According to the company:
“We expect contribution margins for the domestic DVD segment to decline sequentially due to a seasonal increase in usage in the first quarter of 2013 and the expected USPS rate increase of $0.01 each way, which takes effect in January 2013,”
How many of you still favor by-mail rentals over streaming, Insiders?
[via Home Media Magazine]
I still like to get a Disc in the Mail. And Use Block Buster two out at a time for that.
And Have Netflix online. I cut the Cable TV cord years back. Never looked back.
NetFlix Online. Block Buster two out at a time in the mail. And RedBox every now and then. All I need..
Do you ever come up with any material?
All you ever do is repeat the same thing over and over and over.
We get it.
You love Netflix.
Netflix has CC.
You have Blockbuster 2 out at a time.
You’ve cut the cord and haven’t looked back.
Geez, give it a rest.
AMEN TO THAT!!!!!!!! You just said what myself and I’m sure many others have been thinking for a LONG time….THANK YOU!!!!
Give him a break. The guy is 105 years old.
right now I am using the disk because when I had streaming before i could not get cc which I need to understand & enjoy the movie
I don’t really understand fully what Netflix is talking about. Netflix received a large business discount from the postal service which translated to paying less then 50 percent for regular first class postage, they also didn’t have to pay the special handling fee the postal service charged its lower volumn customers. I know there was an investigation conducted by some of the Congressional members, after complaints were filed by other businesses that were not receiving the same discount as Netflix. Even if Netflix was charged the higher rate after the hearing, the discounted rate should have come in to play in their yearly budget. I find there is alot of garbage steaming available and I don’t see why Netflix can’t drop those dud movies and save money to use for the additional postage they may now have to pay.
I use both discs and streaming. Both are excellent. I use mail for new releases and older stuff that isn’t on streaming, and streaming for older stuff. No need for either to go away.
I would still be doing discs out along with the streaming if they had not separated the two and started charging extra. At that time, though, I had hung on to the same movie for nearly 8 months, so I guess I had stopped using the “discs in the mail” feature long before I felt I was about to get screwed.
I dropped the disc option when they split the streaming out and charged separate for each. I have a Redbox 2 blocks away, so I am not obligated to watch a DVD as soon as it hits my door and get it back the next day. I watch about 4 physical discs/month, so Redbox is a better option for me. I still love the streaming though, it is the majority of my eyeball time. They have been putting newer stuff up there lately, so that’s a plus.
In regards to captioning on Redbox, I use it as well, but find it very irritating at times. Whoever programs the captioning is not looking at the screen when it is edited, because they never move it. For instance, if a foreign language is spoken in the movie, the English caps are placed in the picture by the movie and Netflix captioning writes over the top of it with “Speaking in a foreign language”, obliterating the captioning so I can’t read it. They keep their captions in the same spot all the time, even when credits are on the screen, making it very hard to read what they put up there. They never change the color either, making it very hard to read at times. Want more? The captions at times lag, get out of sync or stay on the screen for too short of a time to read it. At times, it just blips quickly and is gone. In addition to captioning, I wear headphones, it’s a better way to understand the dialogue for me.