Films/DVD Asylum

Posted by Ross (A) on July 17, 2011 at 18:04:37

In Reply to: RE: Netflix: $5.00 X 23,000,000 = More than chump change posted by mr grits on July 13, 2011 at 22:33:14

Netflix is trying to deemphasize physical DVD delivery. Ultimately they know that the can not compete with $1 RedBox delivery. At the same time they will face significantly higher licensing costs for streaming titles. Seriously, when Netflix initially negotiated streaming rights, the cost was minimal, in some cases laughably so. Over the next 3 years, streaming rights will be renegotiated and you better believe that Hollywood will play hardball. Netflix is building cash in anticipation.

Best,

Ross