Netflix profile

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Netflix profile

There's a great story about Netflix over at The Register that describes their successful entry into the video rental market (only 2% nationwide), but notes they're doing better in San Francisco:

while its original market in the San Francisco Bay area is now running at 5.9 per cent. It reasons that it can reach this penetration, perhaps more, across the US and it is this calculation that initially led it to say at this week’s unveiling of its fourth quarter figures, that it will make the $1 billion mark early.

Pretty impressive that 1 in 17 rentals in SF is coming through the mail. This article goes into great detail about how they're moving towards delivering movies over broadband with the mention that they're currently mailing out "5 million Gb of data" each day via DVD mailers.

Since their current model relies on the scarcity of actual product, it'll be interesting to see how they move the business online to copies of movies that don't have to be returned. It'll also be interesting to see how they work out deals with studios to deliver movies. Right now they simply buy millions of DVDs. I assume Hollywood will be wanting a percentage of any and all online video sales when they move away from physical DVDs

by Matt Haughey January 28, 2004 in News

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I still prefer Blockbuster to rent my movies. I like the instant gratification (there is one across the street).

Posted by: Mike at Jan 29, 2004 1:02:07 PM

I've been an off and on again subscriber of Netflix since the beginning. Right now I'm in off again mode. In order to "break even" with their monthly fees, I'd have to watch an average of 6 movies a month. With TiVo, I don't watch any. Netflix is a very weird successful phenomenon and if I didn't have TiVo I'd be a big believer.

Posted by: Jeffrey at Jan 29, 2004 1:23:19 PM

You are incorrect, Netflix already has revenue sharing agreements with many studios.

Posted by: firstadopter at Jan 29, 2004 2:29:21 PM

Netflix does have revenue-sharing agreements (except with Paramount, I think, because they own blockbuster). An example of this is their Lord of the Rings DVDs. I got a gray disc that said "for rental only" with the netflix logo and the movie name on it. I'm seeing that more and more often for big releases.

Posted by: Lucas at Jan 29, 2004 4:44:35 PM

I believe there will always be a larger preference to "own" DVD content as opposed to broadband and streaming distribution channels. A company named Gameznflix has recently entered the Game and Movie online rentals, similar to the Netflix model. Later!

Posted by: Keith at Feb 29, 2004 2:53:05 PM

Hey, don't like the monthly fees... try PeerFlix. Like netflix, with no postage and no late fees, but you can choose the pay as you go plan.

Just launched March 1st.

Posted by: Danny Robinson at Mar 4, 2004 4:32:08 PM

WOW!!! This company GAMEZNFLIX will offer Games and Movies. Looks as though it will offer more than Netflix. The site for Games is VEEGEEZ.com. The site for DVD's should be ready any day now. Check it out!

Posted by: Keith at Mar 7, 2004 5:43:20 PM

I just invested into the Gameznflix stock and also signed up for their service. I asked some people at work and one guy is already signed up with them. He was very pleased with the service and he has also bought games through them. I am hoping for the same return.

Posted by: Jeff at Apr 23, 2004 7:20:22 AM

After having so many issues with Netflix I went to my local Circuit City and heard rave reviews about this Gameznflix, After using this now for 6 months,I must say that I am sold!! Games and Movies!!! Doesn't get any better than this!!!

Posted by: Jerry at Mar 29, 2006 4:56:08 PM

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