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Nobody has been making that argument. We're simply saying that free and paid services compete for viewership.
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Netflix streaming is a free supplement to those who rent physical media. I say again, it's FREE to those subscribers who are renting physical media from Netflix. When Netflix starts to offer a streaming-only package and beaks out those subscription numbers, then we'll talk (of course no one would do this because the content you're limited to sucks for the most part). In the meantime, 10% of the subscribers are opting to pay an additional $2-$3 more per month for Blu-Ray.
Yeah, and after about a week of watching content he'll no longer be able to find anything of interest on the "watch instantly" tab that he hasn't already seen.
Netflix streaming is a free supplement to those who rent physical media. I say again, it's FREE to those subscribers who are renting physical media from Netflix. When Netflix starts to offer a streaming-only package and beaks out those subscription numbers, then we'll talk (of course no one would do this because the content you're limited to sucks for the most part). In the meantime, 10% of the subscribers are opting to pay an additional $2-$3 more per month for Blu-Ray.Yeah, and after about a week of watching content he'll no longer be able to find anything of interest on the "watch instantly" tab that he hasn't already seen.
Netflix doesn't offer a blu-ray only option either.

People already pay for electronic delivery of video to set top boxes. In fact, it is the most popular and profitable market for home video entertainment. Cable TV is what i'm talking about.
The transition to IP based streaming isn't that radical a departure as it might first appear. It simply involves a slightly different set top box with a different plug and a different service provider. The infrastructure is already there and the media providing services are spending huge some of money to capture that market.
What the masses are really waiting on are across-the-board licensing deals between those providers and the content owners. Certainly, people who really appreciate HD will stick to blu-ray and HD cable/satellite/ota. But in my opinion, the services, infrastructure, and hardware are already in place for the type of experience that most people desire. They're simply waiting on the licensing deals to make "watch anything anywhere anytime" a reality.










I like having options, streaming or a disc is fine with me.