Is it possible that Netflix has experienced too much growth too fast? Well, it certainly depends on who you’re asking. According to Hollywood, the rise of Netflix spells trouble for its bottom line in years to come. In a recent Cnet article, a little insight is revealed from the film exec’s point of view concerning Netflix. Some studios, it seems, are resisting the notion that Netflix has forged the path to the future of video distribution via the Internet and will remain a dominating force in that arena.
That very well could be true. Netflix is facing a lot of competition and must be constantly on its game to remain the number one choice for online video streaming, but it may be a little shortsighted on Hollywood’s part to say that online streaming is not going to dominate the field over traditional broadcast services. It’s showing the obvious signs that it will, in my opinion, with Netflix attracting over 20 million subscribers, a number that continues to climb.
According to the article, Netflix as already impinged revenues in the areas of airlines, DVD purchases, and cable, and will continue to do so unless the big media companies release an attractive alternative to Netflix’s affordability and convenience. The big question is: can they do it? Hulu was implemented as a tool to circumvent losses incurred through services like YouTube, but would appear that it isn’t making a significant enough dent, at least as competition against Netflix, so what miraculous new gadget or service are they going to wave in front of our faces to lure us away from Netflix?
And if they can’t manage that, will they try, in essence, to starve them out of the limelight by choking off Netflix’s supply of popular material? Here’s a quote straight from the article: “The prevailing feeling among the studio managers I spoke with is that Netflix’s streaming service will be a good outlet for the least-valuable material. If they have their way, Netflix will be the Internet equivalent of a swap meet, where only the most dated and least popular titles are available. The studios are betting that eventually people will get bored with the service.”
Maybe they have a point if they actually can devise a way to prevent Netflix from acquiring titles people actually want to watch, but if they can’t, they certainly shouldn’t bank on consumers’ short attention span. People are hooked to video streaming, and Netflix is displaying every indication that it is a force to be reckoned with. What do you think of the whole Hollywood/Netflix debacle?