Tuesday, July 12, 2011

Netflix to Raise Rates to Try to Squeeze Out Physical Media

I came upon this article that discussed Netflix's plan to unbundle their streaming and physical media packages, and at the same time raise the rates.  I love the idea of getting rid of physical DVD's.  I think they are as relevant as a CD is today.  Unfortunately,   Netflix's race to eliminate physical inventory is outpacing the speed with which they add new content to their streaming library.  In fact, I have seen very little progress in adding content that has come out in the last 2 to 5 years, and their content for 5-20 years is not much better.  I believe that this may be the move that busts Netflix's current hold on movie content.  People will look to get their physical media from other sources and stream from yet another.  It becomes more easy for the consumer to look at movies that way since the current giant is pricing it such.  This misstep can only be undone by an even bigger announce of some sort of new studio offerings online.

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