Originally published: September 16, 2010
Last updated: September 16, 2010 - 8:05pm
Thanks to its digital strategy, Netflix is sitting on top of the world.
Tectonic changes have gripped the video-rental business over the past year, giving Netflix a clear victory over its brick-and-mortar competitors. As Blockbuster and Movie Gallery are waylaid by money problems, Netflix -- by firmly embracing instant streaming -- is charting the industry's future. And by taking its place as a New Media pioneer, it could create headaches for the cable and DVD retail business.
But while tensions with the studios have eased, there are many who believe Hollywood should be worried about the changes that Netflix's business represents. A number of analysts and even industry members believe its streaming business, coupled with the growth of video-on-demand services like Hulu, could represent a shot across the bow of the paid-television industry. "The more consumers find they can get more of the programing they want to watch at a reduced monthly cost, the more consumers are going to disconnect their cable and satellite," one industry executive said. "Why pay $150 if all you watch is ESPN and CNN?"
- Slow Fade-Out for Video Stores
- Hostile Blockbuster Bid Scorned by Circuit City
- Presidential Election: From Net Neutrality to Piracy, The Issues Keeping Hollywood Up at Night
- People Spend More Than Half Their Day Consuming Media
- MPAA Report: Global Box Office Breaks Records, China Becomes 2nd Largest Market
- Why Fox, Paramount, Disney Are Holding Out on the YouTube Deal
- Can Dish plus Blockbuster unseat Netflix?
- Sexist Hollywood?: Women Still Struggle to Find Film Jobs, Study Finds
- MPAA: Hollywood Poured $15.5B Into China's Economy
- E-Books, Shmee-Books: Readers Return to the Stores
- In Battle With MPAA, Zediva Is Down For The Count
- USA Today Publisher Larry Kramer: We're Not 'Unique Enough' to Charge for Web Access
- MPAA's Chris Dodd Praises Democrats for Anti-Piracy Language in Party Platform
- Competition Needs Protection
- Consumers Visit Retailers, Then Go Online for Cheaper Sources