I really enjoy Netflix but they are often showing only 1 part of 3 parts of a movie series on streaming like LOTR's so it sucks to get stuck having to get the disks each time to finish them all. Or as I talked about in another thread was the waiting of 25+days after a release before you can even get the disk in the mail shipped cause the industry wants people to get all pissed and go out and buy the disk which is a waste when you consider most times you watch it 2-3 times AT MOST. I was considering dropping HBO this year cause of netflix streaming anyway along with Starz since they have the Starz play to use.
http://money.cnn.com/2011/07/08/technol ... ?hpt=hp_t2In the not so distant past, Netflix was known mainly for its red envelopes. The DVD-rental-by-mail service was the company's core, and streaming video was a side perk for subscribers.
Fast forward to 2011, and online movies and TV couldn't be hotter. Google, Amazon, Hulu and others have jumped into the fray -- putting studios in the power position. They want to be paid more for the content they're providing.
That spells trouble for Netflix's streaming content costs.
"Netflix has another year or two on most of these contracts, and then the game completely changes," says Michael Pachter, analyst at Wedbush Securities.
Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.
When streaming video was new, Netflix was able to secure contracts with the likes of Warner Bros. Studios and MTV to license big TV and film catalogues for about $5 million to $10 million per year. This time around, Pachter says, those costs could increase more than tenfold.
"The content owners realize they can't give Netflix all the leverage," he says. "Netflix had the power when they were the only bidder. But you don't have as much leverage when you suddenly have competition."
