The report, put together by technology consultant Tristan Louis, reveals that Netflix currently offers just nine of the 100 highest-grossing films of 2010. The company’s streaming service generally favors TV content over full-length titles.
Merriman Curhan Ford analyst Eric Wold believes Netflix’s current trend away from DVD and towards streaming will continue. Says Wold:
“We continue to expect management to acquire additional streaming content in 2011 to increase the value proposition for subscribers . . . Not only do we believe the de-emphasis on DVDs will increase margins – providing additional funds for content – but we estimate the recent price increase could drive an incremental $250 million in revenue/profit this year.”
With many of its subscribers already upset about Netflix’s previous small steps away from physical media, is the company simply trying to push streaming on its customers too quickly? And is the company’s focus on shorter, episodic content the right move?
(via Home Media Magazine)