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To: Gondring
Yes...it got great deals on initial contracts and has scooped the market, but once those end, the market price point will be higher than now.

Perhaps. Or maybe Netflix will make movie companies compete with each other to get access to its distribution.

27 posted on 12/14/2010 7:08:15 AM PST by PapaBear3625 ("It is only when we've lost everything, that we are free to do anything" -- Fight Club)
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To: PapaBear3625
Yes...it got great deals on initial contracts and has scooped the market, but once those end, the market price point will be higher than now.

Perhaps. Or maybe Netflix will make movie companies compete with each other to get access to its distribution.

Exactly. Content creators (like Paramount) don't care where or how their film is viewed, they just want to make money off the film. The cable company and Netflix are just two different distribution systems for their product.

I wouldn't be surprised to see a "film" version of Hulu pop up either (call it Hulu-Film for now), where Hulu-Film made its money off of monthly subscriber fees, and the film company gets the money from advertisements shown during the film. The more popular a film, the more money the film company makes.

There are several more business models I can think of that make good sense for content providers over the internet.

With the advent of internet ready TVs, the cable companies business model of delivering 100 static channels is just another of history's "buggy whips". Twenty years from now, the idea of having cable TV will be as antiquated as having a land-line phone is today. Your grandma might still have one, but nobody under 30 will.

And that is really what has the cable companies upset. They can see their cash cow (cable TV) fading away, and there isn't anything they can really do about it.

43 posted on 12/14/2010 7:42:46 AM PST by Brookhaven (Moderates = non-thinkers)
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