Netflix (NFLX -0.4%) is going 3D: the streaming site is now providing a limited number of 3-D...

Netflix (NFLX -0.4%) is going 3D: the streaming site is now providing a limited number of 3-D titles, and has rolled out a higher-quality 1080p format it calls Super HD. With Netflix recommending at least 7Mbps connections for Super HD streams (compared with 5Mbps for traditional 1080p), expect the company's bandwidth bill to go up, and for ISPs to become even more frustrated. Separately, Cantor is estimating Netflix's Warner Bros. deal will cost $100M/year, and CNNMoney's Paul R. LaMonica argues shares are now overvalued, given limited earnings and huge content obligations.

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Comments (2)
  • Rob Fagen
    , contributor
    Comments (127) | Send Message
    Regarding bandwidth bills, I would possibly expect ISPs to be frustrated, but I'd be surprised if there was a material difference to Netflix's bandwidth bill. My understanding is that they solve this with peering agreements and CDN magic. There will be some additional bandwidth to seed the content, but after that, it should all be very low cost or free.
    8 Jan 2013, 02:15 PM Reply Like
  • albot
    , contributor
    Comments (24) | Send Message
    bullish! this is an absolute buy
    9 Jan 2013, 12:14 PM Reply Like
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