Study: Netflix May Be Eating Into VOD, Premium Networks
Internet video service rated more highly on price, according to Parks Associates
By Todd Spangler, Multichannel News -- Broadcasting & Cable, 6/19/2012 5:46:09 PM
About 16% of U.S. broadband consumers who watch VOD and 17% of those who subscribe to premium programming consider using an online subscription service like Netflix as an alternative, the research firm found.
Netflix streaming users rated the service higher than VOD and premium programming options based on price, although they rated Netflix's picture and sound quality substantially lower.
Click here to read the full story at Multichannel News.
Well, Netflix definitely got the price right! No one uses their disc services anymore, but getting unlimited digital content for $8 a month is genius!!! If cable companies followed suit, this would turn into a real war, but that seems to be a long ways off. Companies like HBO need to jump on the bandwagon and wage war combining forces with COX, Comcast and TWC along with Hulu Plus and then you'll have two fronts instead of so many markets. We only need so many digital video providers. Piecing out individual companies or drasically raising prices is just going to upset the consumer.
Dug Bagley - 6/22/2012 11:03:07 AM EDT
Supply and demand? I don't see any netflix techs in the field or in the offices helping to deliver their product. it's l;ike having a car and never having to pay for the upkeep. Maybee the "FEE" cable carriers charge Netflix can be looked at with greater scrutiny.Ya just shouldn't be able to use someone elses deliverly system to deliver their own product at a lower cost without just compensation.
james F - 6/22/2012 11:02:40 AM EDT
The VOD and premium network distributors need to adjust their pricing DOWNWARD. It's called supply and demand!
VOD was modeled after the video rental store business, but apparently they failed to realize that the video store business was usurped by Netflix, Redbox and libraries (DVDs) and Netflix, Hulu, Amazon, and Vudu (streaming).
The value to consumers of premium networks is based on programming exclusivity. 85% of what HBO offers has been out on DVD for months already (movies); 10% will be out on DVD within the year (original series); and the other 5% is current and has little replay value (Real Time, boxing).
FrankM - 6/20/2012 7:16:16 PM EDT
With how much Netflix has been screwing up, I can't go with them again. Sure, it's cheap entertainment, but I always see the same movies whenever I go on there, and many of which they want me to watch again. I just don't see the value in Netflix, and would much rather pay a bit more of a premium for better content.
Joey - 6/20/2012 9:46:57 AM EDT
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