I'm thinking in a word, raise prices and be done with it, because I'm good with my Netflix package. If you do something to make me have to pay more, like say, how cable providers break out their content into tier pricing, well, so be it I guess.
In June Netflix made over $800 million domestically, and now they're trying to figure out how to raise the roof some more on their faithful clientelle.
With 65m subbscribers, there's much to be had with this golden egg but third-party content does cost them almost five times the cost of their incoming revenue.
Hastings says that the company will start becoming more focused on the premise of not allowing password sharing (somehow) and that they want to motivate customers to move up their subscriptions packages to two-stream and high defintion packages.
There was no hint during Hastings' web broadcast, how they would do that, unless they start forcing folks to.
Which for me is moot, considering I am presently using Verizon Wireless as my provider and could never entertain the idea of pulling down HD content. Two, maybe three movies would kill my monthly bandwidth usage!
Another cog in the wheel of money is how the ISPs that let Netflix stream let them do it. At the moment ISPs are charging them "by the traffic." Which sucks for us, the consumer. When an ISP starts squeezing a provider, we are the ones that get the "bend over."
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He says that these changes will be taking place over a longer period of time. In what I presume will be slow, ever changing little nuances to our agreements with the provider.
Netflix is cranking out some fantastic content. Don't get me wrong. I love what they provide. Yet stunts like this tend to have me step back and review my wallet' flexibility.
[ source: .theguardian. ]
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