Will Richmond

Will Richmond
Contributor since: 2010
@Nick – Thanks. Hollywood is benefiting big time from Netflix as it helps Hollywood create another monetization window. That said, Hollywood is going to raise the fees Netflix pays as it gets bigger. Lots of other factors in play, mainly the pay-TV rights deals.
@joshpritchard – yes those are examples of TV Everywhere. Pay-TV operators are trying to roll them out, but they’ve been slow so far. All of these efforts, plus Google TV, Apple TV, boxee, etc create more options for consumers. Netflix has mainly benefited to date because they’re integrated with the most connected devices. I anticipate continued fast growth as these devices proliferate further.
@richard48 – yes, I was focused only on U.S. So not looking at DTV’s international operations. Also, I said at the end of the year Netflix should be 2nd to Comcast. DTV is as of Q3, but Netflix will bring on another 2-3 million subs in Q4.
@nflx100 – I think you misunderstood – the point was Netflix has added 8x as many subs as pay-TV this year, not 8 DVDs out.
@long_on_oil – yes, you see the point on Netflix’s disruptive potential.
On the issue of postage expense savings, Netflix has said it costs it around a nickel to stream a full-length movie. The round-trip postage for a DVD is $.84. The unknown is how many round-trips each subscriber generates per month, and how access to streaming impacts DVD usage, though it surely drives it down because of convenience. The offset is higher convenience will certainly drive people to watch more streaming hours than DVD hours...