Netflix online movie streaming revenue explodes, slices Apple share in half

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  • Reply 101 of 159
    pmoeserpmoeser Posts: 80member

    Quote:

    Originally Posted by paxman View Post


    I am glad Apple is being pushed here. Hopefully competition will see better choice and better prices. Purchasing individual TV episodes from Apple is expensive. Purchasing a season is better, but who on earth wants to BUY a season of anything? Renting a movie needs to be cheaper. I don't watch much TV but if Netflix's content inventory is getting better then all power to them. 10 buck per month is very doable. $5.99 per movie is way too expensive.



    Just to play Devil's advocate here, on what are you making the assumption that $5.99 is too expensive for a movie? Your own choice about what you want to pay? Fair enough.


     


    But think about what you do every day for a living. Do you create things to sell to earn money? Do you sell things? And how do you come up with that pricing? You just think what would people pay? Possibly.


     


    But I bet you (or your boss) probably sat down and thought about things like: rent for an office/shop; local state and federal taxes; wages for employees; costs to implement and maintain servers; licensing fees to content creators; health benefit insurance; 


     


    Now you might well say that older movies have had their costs covered already and so they should be free. But you ask your local restaurant now that they have paid for the stove, plates and ingredients if you can have that steak for free.

  • Reply 102 of 159
    gmhutgmhut Posts: 242member

    Quote:

    Originally Posted by paxman View Post


    I am glad Apple is being pushed here. Hopefully competition will see better choice and better prices. Purchasing individual TV episodes from Apple is expensive. Purchasing a season is better, but who on earth wants to BUY a season of anything? Renting a movie needs to be cheaper. I don't watch much TV but if Netflix's content inventory is getting better then all power to them. 10 buck per month is very doable. $5.99 per movie is way too expensive.



    It depends on what kind of experience you look for. With certain episodic shows (Lost, Battlestar Galactica, Walking Dead, Breaking Bad, Justified, Sons of Anarchy, etc.) I purposely avoid first runs of an entire season on TV because I enjoy getting the whole season at once on iTunes (or NetFlix if available) and scheduling my own weekend "marathons" and watch the shows back to back with no commercials. Some shows have such a complicated story line that you miss a lot or lose a lot of the continuity watching them with a week between them, especially since many non-networks have taken to splitting the season in two with months between them. Hell, sometimes you lose the plot in the same show on TV because they run 10 or 15 minutes of commercials at once, with the one episode effectively broken into four parts or more. Sure, it's expensive, especially if you consider they're already free on TV. But the viewing experience is far richer and you really get sucked into the shows that way. If you consider what it costs to go to one movie now days, the cost of an entire season is about the same as two movies, plus you don't have to put up with idiots in the audience jabbering the whole time, or a-holes who can't go five minutes without checking their phones. The last movie I went to was like watching it in a room full of fire flies flashing all over the place because of all the cell phone addicts.

  • Reply 103 of 159
    alandailalandail Posts: 755member

    Quote:

    Originally Posted by JeffDM View Post



    I think that's a valid point.

    It is, technically. At first, it was a bonus service, so the revenue might be countable as zero. I think for a while it was $3/mo add-on for streaming. Then people like you and me on the basic streaming plan, we're paying $8/mo. I don't think the numbers are lying, just that people looking at the numbers should keep facts like that in mind so they don't draw incorrect conclusions.


     


    I think you missed my point.  A year ago I subscribed to the full netflix subscriptions for DVDs and Streaming because you had to subscribe to both to get streaming.  I never borrowed any DVDs, I just used the streaming.  They split them out, so I dropped the DVD service and went to exclusively a streaming subscription.  THey make less money from me than they did before.


     


    Look at their last quarterly filing.  A year ago they had about 23 million subscribers, streaming wasn't split out.  This past quarter, they had about 23 million streaming subscribers but just 10 million DVD subscribers (which is down considerably from the 14 million DVD subscribers they had the first quarter after they split out DVDs from streaming).  So it appears that about 13 million people did the same thing I did, they dropped the DVD service.  Somehow that is being spun as a major market share gain, which makes no sense.  Netflix didn't come out of nowhere and gain market share from Apple, they just changed the way they count and bill their subscribers.


     


    Certainly some attention should be paid to the fact that they generate more revenue than Apple, but it isn't from vaulting past apple as they were already ahead, it's simply from counting the revenue differently.

  • Reply 104 of 159
    toysandmetoysandme Posts: 243member

    Quote:

    Originally Posted by digitalclips View Post





    I have no problem with no 'news' access since I have access to the internet but Fox News isn't a news service, it's an entertainment channel (on par with many AM radio stations) so i don't get your point.


    And for those who have any doubt: 


     


    The rest of the media is not much better so people are looking elsewhere for their news:


     

  • Reply 105 of 159
    solipsismxsolipsismx Posts: 19,566member
    Star Ship Galactica alone made Netfkix a bargain for me

    Is that the Samsung Media knockoff of Battlestar Galactica
  • Reply 106 of 159
    palegolaspalegolas Posts: 1,361member


    Hey Netflix... How about an international service?


    I'd love to check you out.

  • Reply 107 of 159
    jragostajragosta Posts: 10,473member
    paxman wrote: »
    I am glad Apple is being pushed here. Hopefully competition will see better choice and better prices. Purchasing individual TV episodes from Apple is expensive. Purchasing a season is better, but who on earth wants to BUY a season of anything? Renting a movie needs to be cheaper. I don't watch much TV but if Netflix's content inventory is getting better then all power to them. 10 buck per month is very doable. $5.99 per movie is way too expensive.

    I love the way people make arbitrary comments like this without justification. It may be too expensive FOR YOU, but that doesn't mean it's too expensive. A Ferrari is too expensive for me, but Ferrari customers are perfectly happy with it. Millions of people are paying it and are quite happy.

    What are your alternatives?

    Well, you could buy the DVD for $14.99 to $24.99.

    Or you could go to the movie theatre for $7.50 per person plus another $10 per person in popcorn and sodas.

    Since millions of people go to the movies regularly and millions more buy DVDs, $5.99 seems like a bargain if you're not going to watch the movie very often or if you generally watch new movies at the theatre.
  • Reply 108 of 159
    iq78iq78 Posts: 256member


    +


     


    I have stated since Apple's sold their first movies on iTunes that Steve Jobs was completely correct about people wanting to own their music, but he was incorrect when he assumed the same for movies/shows.


     


    If Apple was purposefully staying away from subscription based movies/shows then they have been making a huge blunder.  And if this was due to Jobs insistence, then it has been one of his few mistakes at Apple.


     


    It could be that it is the music industry that has forced Apple's model for only buying (or renting at high price) and wouldn't sign a deal that did otherwise.  In that case the industry is once again out-of-touch with what they are competing against (bit-torrents) and have strangled Apple's ability to create a modern movie industry.


     


    -GP

  • Reply 109 of 159
    solipsismxsolipsismx Posts: 19,566member
    iq78 wrote: »
    I have stated since Apple's sold their first movies on iTunes that Steve Jobs was completely correct about people wanting to own their music, but he was incorrect when he assumed the same for movies/shows.

    If Apple was purposefully staying away from subscription based movies/shows then they have been making a huge blunder.  And if this was due to Jobs insistence, then it has been one of his few mistakes at Apple.

    It could be that it is the music industry that has forced Apple's model for only buying (or renting at high price) and wouldn't sign a deal that did otherwise.  In that case the industry is once again out-of-touch with what they are competing against (bit-torrents) and have strangled Apple's ability to create a modern movie industry.

    I think that's correct. Jobs at All Things D has stated many times over the years that there is a balance that needs to be had. I'm sure we've all experienced at a job where you know something that someone else doesn't, either a boss or a customer, but they can't see it or don't trust it or whatever so you are not choice but to do work around their fear and/or ignorance hoping that one that day they understand.

    Apple has been correct about a lot of things in media but they've also been so successful in gaining control from their lack of intelligence that there is an understandable recoil when Apple offers them their hand. Sometimes diplomacy and/or education will not be enough and you'll have to let them fail before they understand. It's not unlike dealing with an obstinate child.
  • Reply 110 of 159
    macbook promacbook pro Posts: 1,605member

    Quote:

    Originally Posted by AppleZilla View Post


    I want to buy many movies from iTunes.


    I want to buy many movies from iTunes.


    I want to buy many movies from iTunes.


     


    ...but it's too damn expensive.


     


    Sigh.



     


    Every week iTunes has new bargains you just need to search a little.  Sometimes the bargains are shown in the header such as "Superhero Summer" (or other "catchy" title) with some HD titles at $9.99.  Sometimes the bargains are even called "Bargains" as a category in "Top Movies."

  • Reply 111 of 159
    macbook promacbook pro Posts: 1,605member

    Quote:

    Originally Posted by SolipsismX View Post





    I think that's correct. Jobs at All Things D has stated many times over the years that there is a balance that needs to be had. I'm sure we've all experienced at a job where you know something that someone else doesn't, either a boss or a customer, but they can't see it or don't trust it or whatever so you are not choice but to do work around their fear and/or ignorance hoping that one that day they understand.

    Apple has been correct about a lot of things in media but they've also been so successful in gaining control from their lack of intelligence that there is an understandable recoil when Apple offers them their hand. Sometimes diplomacy and/or education will not be enough and you'll have to let them fail before they understand. It's not unlike dealing with an obstinate child.


     


    Although I believe this is correct, there are families that purchase significant amounts of media.  I know people that have shelves and shelves of movies.  While that makes no sense to me, apparently they like this model.

  • Reply 112 of 159
    macbook promacbook pro Posts: 1,605member

    Quote:

    Originally Posted by screamingfist View Post


    the gold key for netflix is to add the latest movies for a rental fee like amazon prime is doing. amazon is the bigger threat to netflix and also apple. right now amazons service isn't as good as netflix and the interface needs work (a queue, etc.).


    itunes? forget it. apple just doesn't get the 'cloud'. i use amazon to listen to my music, read my books, and buy lots of other things and i do it from my linux distro machine, my pc, my mac, my phone etc.


    amazon and google get the cloud. icloud and itunes is sh*te.



    Clearly a company that "doesn't get the 'cloud.'


     



    Apple has the market leading ecosystem with:



    • 28 million (mostly) DRM-free songs worldwide (many encoded as 256 kbit/s AAC)


    • 1,000,000+ podcasts (USA)


    • 40,000+ music videos (USA)


    • 3,000+ TV shows (USA)


    • 20,000+ audiobooks (USA)


    • 2,500+ movies (USA)


    • 725,700 App Store Apps with more than 25 billion downloads


    • Apple has more than 70% of the digital music downloads and 30% of digital movie downloads


    • Apple iTunes in the Cloud provides free, unlimited perpetual storage and access on-demand to the entire catalog of purchased movies, music and TV shows



    • Apple iCloud provides seamless synchronization of Apps,  audiobooks, Books, calendars, contacts, movies, music, podcasts, TV shows in the cloud



    • Apple iTunes Match allows users to download up to 25,000 tracks in 256 kbit/s DRM-free AAC file format that match tracks in any supported audio file format, including ALAC and mp3, in the customers' iTunes libraries, with users having the additional option on their computers to keep the original version stored there or to replace it with the version from the iTunes Store as they wish


     



    • Apple iCloud provides free mail, calendars and contacts and "find my phone" (with Notes and Reminders reportedly coming soon)


    • Apple iCloud provides 5 GB free storage which enables bookmarks, calendars, contacts, data & document, email, notes, to-do lists synchronization across devices and platforms


    • Apple Photo Stream provides up to one month storage of up to 1,000 digital photographs with synchronization across devices


    • Apple iCloud "Back to my Mac" service automatically configures ad hoc, on-demand, point-to-point encrypted connections between computers using IPSec.



    • Apple iCloud "Find my iPhone" allows users to track the location of their iOS device, or Mac with the ability to see the device's approximate location on a map (along with a circle showing the radius depicting the margin of error), display a message or play a sound on the device (even if it is set to silent), change the password on the device, and remotely erase its contents


    • Apple iCloud allows users the option to back up iOS devices online and restore from online backup without connecting to a computer

  • Reply 113 of 159
    shaun, ukshaun, uk Posts: 1,050member


    I'm surprised Amazon Prime isn't up there with Netflix in terms of market share.

     

  • Reply 114 of 159
    samiamsamiam Posts: 27member

    Quote:

    Originally Posted by jragosta View Post





    I love the way people make arbitrary comments like this without justification. It may be too expensive FOR YOU, but that doesn't mean it's too expensive. A Ferrari is too expensive for me, but Ferrari customers are perfectly happy with it. Millions of people are paying it and are quite happy.

    What are your alternatives?

    Well, you could buy the DVD for $14.99 to $24.99.

    Or you could go to the movie theatre for $7.50 per person plus another $10 per person in popcorn and sodas.

    Since millions of people go to the movies regularly and millions more buy DVDs, $5.99 seems like a bargain if you're not going to watch the movie very often or if you generally watch new movies at the theatre.


    Lots of alternatives.  Public Library is free.  There are still dvd rental places around doing very well now that blockbuster is dead (rentals $2.49).  Dvd kiosks are popping up everywhere ($2.00 rentals). An then there is always piracy (free again). $5.99 is too expensive for what you get anyway you slice it. Members of the 1% like yourself are still just 1%.

  • Reply 115 of 159
    alandailalandail Posts: 755member

    Quote:

    Originally Posted by samiam View Post


    Lots of alternatives.  Public Library is free.  There are still dvd rental places around doing very well now that blockbuster is dead (rentals $2.49).  Dvd kiosks are popping up everywhere ($2.00 rentals). An then there is always piracy (free again). $5.99 is too expensive for what you get anyway you slice it. Members of the 1% like yourself are still just 1%.



     


    Did you really just say $5.99 is too expensive because stealing is free?  Great ethics there.


     


    The other options are price vs convenience tradeoffs.  Get into your car, drive to the video store or kiosk, pick out a movie, find the one you really want is gone and you have to pick something else, bring it home to watch, watch it, then drive back the next day to return it to avoid late fees vs paying a couple of extra dollars to view the new movie you want to watch when you want to watch it.


     


    Currently streaming movies is broken in that the selection isn't always there - this is a movie studio issue, not an apple issue.  When the Avengers came out, I wanted to rent Captain America, Thor, and Iron Man 2 to watch before going to the movie.  I couldn't do it.  Blockbuster was out of stock of all 3, iTunes wouldn't rent them, but rather only sold them, they weren't on Netflix.  I didn't want to buy them, I just wanted to watch them.  I ended up not being able to watch them before we saw the Avengers despite driving around town and searching the various streaming rental sites.  The movie industry lost money because of it.

  • Reply 116 of 159
    jragostajragosta Posts: 10,473member
    samiam wrote: »
    Lots of alternatives.  Public Library is free.  There are still dvd rental places around doing very well now that blockbuster is dead (rentals $2.49).  Dvd kiosks are popping up everywhere ($2.00 rentals). An then there is always piracy (free again). $5.99 is too expensive for what you get anyway you slice it. Members of the 1% like yourself are still just 1%.

    Other than your advocacy of criminal behavior, I'm glad you see all of those things as options. That means you have no right to complain about Apple's price - there are plenty of other ways to get your movies. If there aren't enough people willing to pay $5.99, Apple will either have to change the price or drop the service.

    BTW, however, you are missing a key point. The DVD kiosks have horrible selection, as do most libraries. Plus, if you don't get the movie back to the DVD kiosk in 24 hours, you pay for another day. So it's $2.00 plus two auto trips.
  • Reply 117 of 159
    jeffdmjeffdm Posts: 12,951member
    shaun, uk wrote: »
    [SIZE=12pt]I'm surprised Amazon Prime isn't up there with Netflix in terms of market share.[/SIZE]

    Prime doesn't seem to have the selection, at least in the US. I have Prime for the shipping convenience, but I've only used their video service twice.
  • Reply 118 of 159
    gatorguygatorguy Posts: 24,213member

    Quote:

    Originally Posted by jragosta View Post





    A Ferrari is too expensive for me, but Ferrari customers are perfectly happy with it. Millions of people are paying it and are quite happy.


    Millions might be overstating a bit. 10's of thousands more likely, but your general point is still valid. "Too expensive" doesn't apply to everyone just as you say.

  • Reply 119 of 159


    And here I thought that they were still trying to figure out how to turn a profit on the streaming.  It has gotten much better as far as selection over the last few months so I think we will see further move towards Netflix streaming as long as they can keep that up.  I wouldn't mind a more premium option which could have more movies and newer releases.  The main problem that Netflix has at this point though is their wide range of devices and UIs.  On some of my devices I love the interface, but on others it is terrible.  Also, some devices do not allow proper buffering and can result in the constant rebuffing that people experience even when they have a great internet connection.

  • Reply 120 of 159
    bsenkabsenka Posts: 799member

    Quote:

    Originally Posted by alandail View Post


     


    When the Avengers came out, I wanted to rent Captain America, Thor, and Iron Man 2 to watch before going to the movie.  I couldn't do it.  Blockbuster was out of stock of all 3, iTunes wouldn't rent them, but rather only sold them, they weren't on Netflix.  I didn't want to buy them, I just wanted to watch them.  I ended up not being able to watch them before we saw the Avengers despite driving around town and searching the various streaming rental sites.  The movie industry lost money because of it.



     


    See my post earlier in this thread: I was in the same situation as you, wanting to see those same three movies for the same reason. I did watch them on Netflix. No Iron Man 1, and no Incredible Hulk though.


     


    Regardless, you still have made a great point. The movie industry loses out on revenue specifically because of their restrictive models. I know you rejected piracy as an acceptable alternative, but the fact remains that piracy thrives primarily because it's significantly less hassle. The studios should embrace the Netflix model if they seriously want to stamp out piracy. It's cheap enough that there's no reason to complain about the price, and it's much easier than torrents. For even the most picky viewer, the only missing ingredient is improving the selection.

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