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Posted by Sam Rouse on 02/12/06 06:13
In article <11usumfquihpu63@corp.supernews.com>, "Alpha" <none@none.net> wrote:
> > So, my prediction is that throttling won't stop
> > (or perhaps a limit will be imposed, but I hope not), advertising will
> > change,
> > Netflix will continue to be successful, and a small percentage of folks
> > will
> > continue to whine.
>
> As another poster pointed out, this technology has now peaked. The future
> clearly is streamed video, not physical discs. Netflix has already started
> investing in streamed video, and that is perhaps why they need to maximize
> revenues .. to invest.
Sure, but I don't see the whiners getting any pleasure here. Already, there's
an increasing market for 25-50 minutes worth of television downloadable to cell
phones for $1.99 a pop - that is what this new market will currently bear. This
technology doesn't make the market directly scalable - much of the
infrastructure required to deliver this product is not owned by the product
providers. Then, at the front end are investors putting anywhere from $10-200
million into movie products - they want return on their investment, and they
will get it (and are getting it from Blockbuster, and Netflix, and Comcast, and
DTV, and Dish, and Verizon, and....). So, I'm not holding my breath for
purchaseable movie downloads to be had for less than the seemingly magic average
figure of $1.50 each, and it'll probably be awhile - if ever - before they get
that low (in adjusted future dollars).
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