In case you haven’t noticed, there’s been quite a bit of press the past few weeks concerning just how successful Netflix has become, especially concerning their success with streaming video. Netflix has apparently got both Hollywood & the content industry rather upset (even though Netflix was their “savior” a few years ago).
Why is Netflix so successful? Because it offers a great service that consumers desire at an affordable price! What does the content industry (TV, movie, cable, etc.) offer consumers? Diddly squat! And now they’re whining about just how badly they’re getting “ripped off” by the cheap prices paid to them by Netflix to stream their content. Those contract prices are due to expire in 2012 and they’re talking about charging Netflix as much as a hundred times more to stream their content.
What does that mean for consumers? Probably that Netflix won’t be able to afford to stream content anymore. What does that say about the content industry? If they can’t control it, then they kill it.
Here’s the articles in case you didn’t see them. They’re all well worth reading!