Netflix Turns Focus Back to Disc

[slick1ru2]

http://www.homemediamagazine.com/net...-instant-30952

Netflix posts largest quarterly drop in disc subs since 2011
23 Jul, 2013

Netflix’s oft ignored by-mail disc rental service lost 470,000 subscribers in the second quarter (ended June 30) to finish with more than 7.5 million members.

It was the first surge in declining disc subscribers since Netflix began separating streaming and physical-disc members in 2011, and represented a 5.9% drop from the previous-year quarter. Netflix lost 240,000 disc subscribers in the first quarter. Notably, disc rentals generated $109 million in contribution profit, which represented almost a 47% margin — more than twice Netflix's streaming-only contribution margin of 22.5%.

While Netflix CEO Reed Hastings insists the by-mail rental pioneer is not turning its back on packaged media, B. Riley & Co. analyst Eric Wold says the increased reduction in Netflix subs suggests consumers are gravitating toward Rebox Instant by Verizon, which offers physical and streaming access for the same $7.99 per month fee.

Redbox Instant, which offers unlimited SVOD access to 5,000 titles in addition to four disc rentals, was launched to the public in March — the end of the first quarter.

“We continue to believe that the $8 combo disc/streaming subscription plan offered by Redbox Instant will represent an attractive option to Netflix DVD-only subscribers that are paying the same price for disc access only,” Wold wrote in a July 23 note.

The analyst believes Redbox will significantly increase marketing efforts for the SVOD service beginning in Q3 or Q4 when summer theatrical titles begin their migration to home entertainment.

“Nevertheless, we take this trend reversal with Netflix DVD-only subscribers as an optimistic sign that Redbox Instant is already having a competitive impact on the industry,” World wrote.

[atomik kinder]

Originally Posted by slick1ru2

Actually it was an attempt to say that NetFlix isn't trying to get away from physical discs in the future because they didn't split it off. It would be like me posting a thread that says, "Redbox Turns Focus To Streaming" when their Redbox Instant app went live last week on Roku. http://news.cnet.com/8301-1023_3-575...comes-to-roku/

Nice, at least Red Box gives you four free DVD rentals per month with their subscription. Something Netflix won't do.

Anyway back to Netflix and their disc service. Funny how Netflix still gets every major release and most minor releases for disc based rental. Can you say that for streaming? No. But it seems that the Netflix streaming service is trying to postition itself as a television network, producing its own programs. In fact, one day I wouldn't be surprised it the majority of what it offers is original programing.

[rickah88]

Originally Posted by atomik kinder

Nice, at least Red Box gives you four free DVD rentals per month with their subscription. Something Netflix won't do.

Anyway back to Netflix and their disc service. Funny how Netflix still gets every major release and most minor releases for disc based rental. Can you say that for streaming? No. But it seems that the Netflix streaming service is trying to postition itself as a television network, producing its own programs. In fact, one day I wouldn't be surprised it the majority of what it offers is original programing.

And not to mention both of Netflix original streaming shows are now and/or will be available on disc(Houce of Cards & Lilyhammer). Which means, most likely Hemlock Grove will be put out on disc too.
Yep as long as there is physical media, there will be outlets to rent physical media.
I go through over 200 discs per year, which amounts to a little over a dollar per disc on my rental plan. I'll never be too bummed that Netflix doesn't get every indie/foreign film, on BD, that I'd like because I'm saving a ton of money on everything else. With most of the discs in gorgeous 1080p and boasting extras, yep it's one of the best deals on the planet...right below Amazon Prime(where I get all my other BDs). FTW!

[slick1ru2]

Originally Posted by atomik kinder

Nice, at least Red Box gives you four free DVD rentals per month with their subscription. Something Netflix won't do.

Anyway back to Netflix and their disc service. Funny how Netflix still gets every major release and most minor releases for disc based rental. Can you say that for streaming? No. But it seems that the Netflix streaming service is trying to postition itself as a television network, producing its own programs. In fact, one day I wouldn't be surprised it the majority of what it offers is original programing.

They don't get every major release right away now do they? The studio holds off selling to them on release. And not all discs they get are full discs are they? Features are disabled. Now you can PPV movies before they are available for rental.

And just imagine how many more titles NetFlix could buy the rights for if they weren't paying for discs, packaging and postage?

[slick1ru2]

Originally Posted by rickah88

And not to mention both of Netflix original streaming shows are now and/or will be available on disc(Houce of Cards & Lilyhammer). Which means, most likely Hemlock Grove will be put out on disc too.
Yep as long as there is physical media, there will be outlets to rent physical media.
I go through over 200 discs per year, which amounts to a little over a dollar per disc on my rental plan. I'll never be too bummed that Netflix doesn't get every indie/foreign film, on BD, that I'd like because I'm saving a ton of money on everything else. With most of the discs in gorgeous 1080p and boasting extras, yep it's one of the best deals on the planet...right below Amazon Prime(where I get all my other BDs). FTW!

Those are the old shows. Try renting Orange Is The New Black on disc. And more and more discs no longer have any extras.

http://www.hackingnetflix.com/2010/1...dvd-sales.html

[rickah88]

I'm sure it will be available on disc, just like every original Netflix show has been to date.
More discs have extras than don't.

[slick1ru2]

Originally Posted by rickah88

I'm sure it will be available on disc, just like every original Netflix show has been to date.
More discs have extras than don't.

So your point is you can wait for NetFlix original titles to come on disc, but not new releases to come to NetFlix. And when you tout extras on discs its a bonus but when its pointed out that more and more studios not including them on rentals is pointed out you shrug it off.

[rickah88]

Originally Posted by slick1ru2

So your point is you can wait for NetFlix original titles to come on disc, but not new releases to come to NetFlix. And when you tout extras on discs its a bonus but when its pointed out that more and more studios not including them on rentals is pointed out you shrug it off.

When did I ever say I can't wait for new releases to come to Neflix??
With almost 200 discs in my queue, all I ever do is wait. I have a never ending supply of BD's at my disposal. The only way it will run out is if:
1) Netflix halts physical media
2) Phyical media is halted by the studios

Neither of which is going to happen any time soon. So I'll continue with my 200+ BDs/year and be enjoying every minute of it.

As for extras, of the discs that I receive(that's all I care about obviously), ~80% have extra content.

[octagon]

Originally Posted by slick1ru2

And just imagine how many more titles NetFlix could buy the rights for if they weren't paying for discs, packaging and postage?

Didn't you just post an article that said Netflix disc rentals are still profitable?

Why would one imagine that turning healthy profits keeps them from buying titles? Wouldn't it be more reasonable to believe that turning healthy profits enables them to buy more titles?

[Wendell R. Breland]

Originally Posted by octagon

Didn't you just post an article that said Netflix disc rentals are still profitable?

Contribution profits from disc rentals at Netflix is much better than the streaming counter part. Never saw a company that tried to get rid of the goose that laid the golden egg for them like Netflix has. At least they seem to be giving disc rental a little more love again.

[The_Donster]

As far as the studios dictating that Netflix use rental discs for newer releases I'm ok with that. I use the BD rental to gauge if this is something I want in my movie collection. One of the first films I ran across this way was Bridesmaids and I ended up buying the disc for my wife because we couldn't stop talking about it.

[yellowcakeuf6]

Originally Posted by rickah88

I'm sure it will be available on disc, just like every original Netflix show has been to date.
More discs have extras than don't.

I got "To The Wonder" shipped to me the day after release (kinda rare for me), and was surprised that the extras were intact.

[octagon]

Originally Posted by The_Donster

As far as the studios dictating that Netflix use rental discs for newer releases I'm ok with that. I use the BD rental to gauge if this is something I want in my movie collection. One of the first films I ran across this way was Bridesmaids and I ended up buying the disc for my wife because we couldn't stop talking about it.

The lossy audio on some rental discs is kind of aggravating (and I'm not even sure how prevalent that is) but other than that, yeah, it's fine.

If you want to rent a new release for like a dollar you can't get too bent out of shape if there are no extras or if you have to wait a few more weeks.

[rickah88]

Originally Posted by yellowcakeuf6

I got "To The Wonder" shipped to me the day after release (kinda rare for me), and was surprised that the extras were intact.

AFAIK, all Magnolia releases have extras intact. Which is why I add, virtually every Magnolia release(not to mention they are pretty damn good to boot).

[yellowcakeuf6]

Originally Posted by rickah88

AFAIK, all Magnolia releases have extras intact. Which is why I add, virtually every Magnolia release(not to mention they are pretty damn good to boot).

Good info. I'm in the process of compiling some of the overdue Blu-rays at Netflix. There are a few non-Criterion titles I've been waiting for that are still not listed as available on Blu-ray.

[Scott r]

I don't rent movies or games.i have about 1700 DVDs and 800 blu rays,about 300 360 games and 20 ps3 games.i had Netflix about 6 months.a friend told me that it was crap because of the downloading and quality of the picture.well I love it I never had 1 problem as soon as I click on the movie or show I want to watch it is on with a great picture in a few seconds.i also have vudu and it has a great picture to.i have about 300 movies on it with bout 50 television seasons on it and I love it.the picture is great and no hassle messing with disc.
I for one loved what Microsoft was going to do at first.they were looking into the future.i could have went to a friends house and signed in on his system and every game I owned would have been on his without takin it from my house.it wasn't Microsoft that is pushing this but the companies because they are getting screwed by the 2nd hand game market.
The fact is that a person don't really on the game or movie they buy.we just own the right to use it on the disc we have.by law we are not suppose to copy or sale any movie or game after we bought it,some movies even post it at the start of the movie.
The fact is Microsoft had it perfect from the beginning.game developers already said that a lot of games that is coming out for the new system will require online.the fact is we are heading to the digital format and physical media is dieing out.i use to have over a 1000 CDs and when digital music started the majority of people said they don't like it and rather the CDs and I was one of them.well look at us now.i read n article that said music companies are phrasing CDs out because they are not profitable enough to keep putting them out.i even have all my music in digital format and don't buy CDs anymore.what I'm saying is digital is the future and it can't be stopped.i remember when Microsoft first starting pushing digital content on games .sony fans said they didn't want that and it want work.well Sony is big on it now to because it caught on because it's the future.

[slick1ru2]

Scott r, lol, did you ever post that on the wrong forum. Prepare for the onslaught.

[Steedeel]

Originally Posted by Scott r

I don't rent movies or games.i have about 1700 DVDs and 800 blu rays,about 300 360 games and 20 ps3 games.i had Netflix about 6 months.a friend told me that it was crap because of the downloading and quality of the picture.well I love it I never had 1 problem as soon as I click on the movie or show I want to watch it is on with a great picture in a few seconds.i also have vudu and it has a great picture to.i have about 300 movies on it with bout 50 television seasons on it and I love it.the picture is great and no hassle messing with disc.
I for one loved what Microsoft was going to do at first.they were looking into the future.i could have went to a friends house and signed in on his system and every game I owned would have been on his without takin it from my house.it wasn't Microsoft that is pushing this but the companies because they are getting screwed by the 2nd hand game market.
The fact is that a person don't really on the game or movie they buy.we just own the right to use it on the disc we have.by law we are not suppose to copy or sale any movie or game after we bought it,some movies even post it at the start of the movie.
The fact is Microsoft had it perfect from the beginning.game developers already said that a lot of games that is coming out for the new system will require online.the fact is we are heading to the digital format and physical media is dieing out.i use to have over a 1000 CDs and when digital music started the majority of people said they don't like it and rather the CDs and I was one of them.well look at us now.i read n article that said music companies are phrasing CDs out because they are not profitable enough to keep putting them out.i even have all my music in digital format and don't buy CDs anymore.what I'm saying is digital is the future and it can't be stopped.i remember when Microsoft first starting pushing digital content on games .sony fans said they didn't want that and it want work.well Sony is big on it now to because it caught on because it's the future.

1. There is no downloading on Netflix
2. The picture is hardly great (you own blurays, you should know!)
3. Why do you buy and own so many blurays. Why not sell them if you are so impressed with digital downloads/streaming.
4. The future is garlic bread, not streaming.

That is all.

Oh, wait. Streamers and the red corner have been telling us bluray sales will fall off this year. Well, they are up and gaining steadily. They will tell us the same next year. You go and enjoy your streaming Scott, I will continue to treat my projector with the respect it deserves. No second best in my house, no siree!

[Steedeel]

Originally Posted by slick1ru2

Scott r, lol, did you ever post that on the wrong forum. Prepare for the onslaught.

Like you have been doing (in my opinion)for as long as I have been a member Slick?

[slick1ru2]

Originally Posted by Steedeel

Like you have been doing (in my opinion)for as long as I have been a member Slick?

Hardly surprised you were the first to jump on his case.