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With Netflix focusing more and more of its energy and marketing on the streaming side of its business, it is ignoring virtually every box office hit of the last year, says a research report.

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)

18 Responses to “Report: Netflix Streaming Heavily Skewed Away from Blockbusters”

  1. Visitor [Join Now]
    MalechiTech [visitor]

    I like the streaming because most of the DVDs were too scratched to play anyway. But the content is pretty slim pickings and the recommendations dont grab me. A movie is a two hour investment, so I need more convincing to watch some movie I’ve never heard of that is “similar” to a previous one. my thought is that I haven’t heard about it because it probably was no good. so why watch it now? then again, for $8/ month I’m not going to be that picky. I just wish choosing the B movies wasn’t like Russian roulette.

  2. Member [Join Now]

    too scratched bull .. i do 9 a week from netflix … 1 a month is all i get that are
    not readable by the computer 100%. it is digital. it either makes a perfect read or it doesnt. that is why you rip first to a computer so it doesnt have to be right the 1st time. it can read it a few times to get it right then store it.
    then playback from a hd to screen is perfect.

    much better quality and no dropouts compared to streaming which sucks!!!!
    the promise of yesterday was regeneration of a digital signal at your TV a few feet away where no noise or BS could degrade the signal!!!!
    that is how directv made it debue. that was the promise of dvd.
    that is the ideal nature of 1080p blu-ray.
    no compression regeneration at you tv (within 6 ft) of TV!!!!

    that is what TV today should be!!!! and is in my house!!! and will stay that way
    until i die!!!! FK anyone who thinks there is some service that will ever make it if
    the regeneration is now right at the TV in PERFECT quality! so screw netflix streaming and all the others. give me bluray disk anyday!!!
    not compressed like netflix and no dropouts compared to directv and verizon and comcast. DISKS will always be here!!!! who of you are ready to toss your 200 to 400 blu-rays players in the trash in the next 5 years. my players last 10 years+. they work fine even after watching 4000+ movies in 10 years.

    im not trashing anything. movies today cost nothing to rent.
    bb express is free!!!! always a code that works!!!
    redbox runs promos like groupon where you get 3 for a $ every other week!!!
    thats .33 a movie of .83 a movie for blu-ray!!!!
    netflix 30+ a month i get for free just gotta pay gas to get back to PO.
    and blockbuster ran a promotion for 3 months 1 at a time for $10
    thats another 50 movies for $10 over 3 months and that includes BR!!!

    so give me a break! as long as movies are dirt cheap forget degrading you viewing experience to save a few PENNIES and tell them to shove streaming up their ass!

    • Visitor [Join Now]
      Boris [visitor]

      Agree with your opener…the “too scratched” makes me believe the first guy doesn’t even rent from NetFlix… sounds like total b.s.

  3. Member [Join Now]

    Streaming is OK for watching a TV show like “Man Vs. Food”, so if you end up with the dreaded “Retrieving” bar on your screen, you’re not wasting too much time. Streaming a movie? Hell, an hour and a half movie could turn into a 2 to 2 and a half hour debacle with the dreaded “Retrieving” bar. NF is pushing streaming too much right now. Like i’ve said here before, most folks don’t have super high-speed internet and would end up dealing with a lot of starting and stopping and staring and the dreaded “Retrieving” bar. NF is pushing streaming so hard because it is cheaper for them to do instead of mailing out the physical discs. They better watch out shoving something down people’s throats that they don’t want, unless they want more customers cancelling their service just because they want to raise their profit margins slightly. El cheapo idiots.

    • Member [Join Now]

      We signed up for NF just because we liked the streaming concept. But after a month we had run out of movies we wanted to watch. Also the streaming was not very smooth. We had lots of drops and having to reload and then try to figure out where we left off. Also, I have hearing difficulties with accents and also with too fast of dialogue, so it was upsetting to not be able to have closed caption. So we cancelled and we are back to just using Redbox now. We get so many free codes and the otherwise dollar per night that we are okay with just doing that.

  4. Visitor [Join Now]
    Boris [visitor]

    Anyway, to the point, NetFlix has taken aim on their foot and opened fire. I’ve noticed a reduction in films at BB, but they are the B (and C) titles. Anyone dropping the A-list films just doesn’t want to keep their customers.

  5. Member [Join Now]

    How is Netflix going to sell people on its new focus if all they have to offer are shows its customers can already watch on their TVs and movies no one wants to see anyway? What a terrible strategy.

  6. Member [Join Now]

    I think this is only going to work if they get better content. It seems the more focused they get on streaming, the worse the content is. I could barely keep up with all the new movies that were being added for streaming, but now half the time I look at the new list and I can’t find much interesting. This will only work if they keep the content high quality. But I will say that I’m ok if they get more TV shows. I would love to drop my cable bill and just go with netflix, but there are too many shows that I’m not ready to give up yet.

  7. Visitor [Join Now]
    mmmpow3r [visitor]

    Has a Netflix subscriber, I am really disappointed at the offerings of movies…I don’t even watch Netflix streaming anymore and instead have been ordering the DVD’s. I just wish they would include the recently released movies for streaming.

  8. Visitor [Join Now]
    xknight [visitor]

    Wow, you all must have some terrible internet connections. I and my entire family watch probably 10-20 streaming videos per week from children’s programs to Seasons of TV shows to full length movies. We never have any problems viewing them. In fact I have been watching videos since Netflix released the streaming and have never once had it buffer or “retrieve”. It takes a few seconds to load in the begining and then the HD works perfectly. I get no dropouts or anything ever. Sure the quality isn’t quite as perfect as Blu-ray, but it is on par with HD programming from satellite providers. I don’t understand why people are having so many problems. My internet connection is around 18Mb download, but most cable and fiber internet is around that speed.

  9. Member [Join Now]

    Netflix has done their homework. The highest number of titles they mail are TV series. Video stores never caught on and charged by the disc so they where not able to clean up on the TV series renters. I am a former Hollywood Video Manager and could not understand why we did not make are way in this market. The fact of the matter is that people miss a good portion of shows they want to watch or get tired of watching 20 minutes of advertising to see 40 of show. I use the streaming service more than I ever dreamed I would, I do not have to wait for discs to come in the mail and I can watch all I want. The problem I am running into is band width in the area I live in.

    • Member [Join Now]
      Martriden [martriden]

      Agree!! I only have Basic cable, and I miss out on a lot of the TV series. But with Netflix, I can catch up on many of the series that I want. The only problem is, they tend to pull them too fast, and then they are only available by DVD. I love the streaming, and never have a Buffering bar as others have mentioned.

  10. Visitor [Join Now]
    Jenn Percopo [visitor]

    Netflix needs to break free from corporate America and put their customer’s needs before the dollar signs on paper. I like the streaming, because it’s so convenient, but they really don’t have a lot of blockbusters, like this article says. I will never get rid of my DVD subscription because you can get all the movies that you can’t find streaming. They even have a lot of really old movies that you can’t find anywhere else. I think it kind of sucks that they are pushing streaming so much. If they had a better selection, then fine, but until then, IF IT’S NOT BROKE, DON’T FIX IT!!!! They honestly need to wait until they have better and more CURRENT choices. They do have a lot of TV shows, but Netflix is for MOVIES! I don’t want to pay to watch TV shows that you can watch free on Hulu. I think they should have just left it the way it was. They’ll piss off a lot more people than they will please. In theory they might make more money, but they’re not counting all the customers they will lose. What about the poeple who don’t have internet who depend of the DVD’s? That was me for a while! But, if that’s the way it’s gonna be, then more poeple will just start downloading movies FREE from places like

  11. Member [Join Now]
    Martriden [martriden]

    Do you know why Microsoft dropped the HD-DVD technology and let Sony’s BluRay win the race? It’s because, Microsoft was looking into the future. Don’t get me wrong, I think that BluRay is incredible in every aspect, but I have purchased a few HD-DVD titles back in the day when I bought the HD-DVD player for my Xbox360, and the picture quality was magnificent. Now that I have a Panasonic Viera BluRay home theater, I like the high definition….but, there are quite frankly NOT enough titles on the market that are “HD” worthy.

    I purchase titles from the Zune Marketplace on my Xbox360, and you have the choice to either purchase the content or stream it in SD or HD. I hardly ever get a problem watching a movie through Zune or Netflix on my Xbox360 console. My Panasonic device is also Netflix ready, but I don’t watch on that. I suggest that you get a better internet provider, as your’s is simply slacking. I NEVER get a progress bar, only it might drop from a 4-bar HD to 4-bar standard do to a hicup in the line….but it usually clears up. When I choose a movie or show to watch, it takes about 30-45 secs for it to “Determine picture quality”. From there, it runs smoothly.

    Netflix has some good HBO miniseries that I am watching on DVD. I just got finished with Rome (Season 1 & 2), and I am now currently watching The Pacific…..but, the streaming selection is very slim to none. Paying only $8 a month is not bad, but I if there were better (and newer) release titles, then I wouldn’t mind paying extra.

  12. Member [Join Now]

    As a replacement for cable, Netflix is doing just fine. I have dropped down to the 1 out at a time plan to reduce costs, but the streaming is the big thing right now and we use it quite a lot. I have to echo xknight’s comments… here in San Diego, we have AT&T unlimited internet and we have yet to encounter a problem with streaming. The quality can be subpar at times, but usually it fixes itself within a couple of minutes and gets back up to HD quality. Last week, my daughter and I watched 16 television episodes and 4 movies. My roommate also uses the service and watched an additional 9 television episodes during this time. That doesn’t include a new movie every 3 days (if I time things correctly). So over the course of a month, I definitely feel we’re getting our money’s worth.

    As for Netflix ignoring new releases, I think this may be in large part due to the 28 day delay windows and such. If the big studios don’t want to play without imposing limitations, then so be it. There’s always BB Express or Redbox or even the local library, for that matter.

  13. Visitor [Join Now]
    Christina [visitor]

    I love Netflix streaming content because I am really into independant films. I just dropped the DVD part of my subscription because I had the same DVD sitting in my cabinet for 6 mos… if there is something new that I really must see right away, I either rent it through Amazon and stream it or hop on over to the Redbox that is only 5 min from my house. I stream from my Roku box or PS3 and rarely ever have to wait in the middle of movies like others have mentioned, even while watching HD movies.