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Who are we kidding? Of course it’s Netflix vs. cable (Dinosaur Media DeathWatch™)
Gigaom ^ | June 14, 2011 | Janko Roettgers

Posted on 06/15/2011 1:05:37 PM PDT by abb

Ask Netflix about cord cutting, and it’ll tell you: “It’s not happening, it’s not anything we are causing, cable and Netflix are complementary.” Then take a look at the actions of service operators, cable networks, consumers and even Netflix itself, and you’re going to see a decidedly different picture: Cable and Netflix are competing for the same eyeballs, the same money and the same TV real estate, and the fight is getting tougher by the day.

Not convinced yet? Then consider this evidence:

Consumers are ready to jump ship. Netflix users that stream the company’s videos to connected devices are twice as likely to at least downgrade, if not outright cancel their cable TV subscription than they were just a year ago, according to a new study from The Diffusion Group (TDG). Thirty-two percent of these Netflix users are thinking about calling their cable company. “Despite its rhetorical positioning, both Netflix and Pay TV operators have long been aware that there will come a point at which its services are not only dilutive to regular TV viewing, but antithetical to Pay TV subscription levels,” said TDG’s Michael Greeson. In other words: In the long run, Netflix will inevitably lead to cord cutting.

Content licensing is getting more competitive. Netflix Chief Content Officer Ted Sarandos revealed recently that Netflix is now at the table for pretty much any TV licensing deal. So why aren’t Netflix customers buying more content? Because some of the networks simply don’t like to share. Netflix would prefer cheaper, non-exclusive licensing deals, which would make it possible to get more bang for its buck. However, HBO and increasingly Showtime are insisting on exclusive content to prevent subscribers from jumping ship.

Many observers thought Netflix wanted in on this game when the company bought the rights to its first-ever exclusive show House of Cards this spring. Sarandos, however, said that it was exactly the other way around: Netflix was getting concerned that it would get shut out of too many deals for attractive serialized content, which is increasingly going exclusively to programmers like HBO, so it saw itself forced to act.

Cable companies castrate their TiVos. A number of cable companies now offer their customers TiVo-branded DVRs that offer access to all kinds of additional online content. But TiVo users who buy their devices at retail will be able to watch videos from Netflix and Hulu Plus with these machines, while customers who rent the same DVR from their cable company won’t have access to these two services. The logic? Netflix could get people to ditch their premium channels and ignore cable VOD.

Netflix is dominating every screen. Network operators are trying to bring TV everywhere, but they often must feel like the hare racing the porcupine: Wherever they look, Netflix is already there. The company’s service is now available on more than 250 devices, and Netflix is getting more aggressive about dominating every single screen. The latest ploy is a dedicated Netflix button on your remote control, which puts it in direct competition with your cable guide. That raises the question: Do you want to browse through thousands of channels, or simply access Netflix?

Incumbents are putting a cap on it. If you’re a network operator, how do you keep your customers from canceling premium pay TV services to watch everything online? Canadian ISPs seem to think that bandwidth caps are the answer, and they’ve been enforcing strict data diets for years. ISPs that charge consumers up to $2.50 per GB once they exceed caps as little as 2 GB per month have been a real problem for Netflix north of the border, forcing the company to default to SD-quality streaming for all Canadian customers.

There’s been some movement with regards to bandwidth pricing in Canada in recent months, but the conditions are telling: Shaw recently introduced generous 1TB caps and even unlimited data plans, but those are reserved for customers who have a pay TV subscription as well. Bandwidth caps in the U.S. are generally higher, but not really that generous either, especially if you’re a heavy Netflix user.


TOPICS: Business/Economy; Culture/Society; Extended News; News/Current Events
KEYWORDS: advertising; cable; dbm; movies
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Of interest to our group.
1 posted on 06/15/2011 1:05:43 PM PDT by abb
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To: 04-Bravo; aimhigh; andyandval; Arizona Carolyn; Bahbah; bert; bilhosty; Caipirabob; carmenbmw; ...

ping


2 posted on 06/15/2011 1:06:36 PM PDT by abb
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To: abb

Getting rid of dish this week. Going with internet, radio, netflix and video games for the kid.

TV is just throwing money down the toilet.


3 posted on 06/15/2011 1:10:07 PM PDT by Grunthor (Make the lefts' collective brain cell implode; Cain/Bolton 2012.)
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To: abb

Well, if you have a life, and you have to go to work everyday, and you want to spend time with the family and friends, and attend church, and social events, etc., you realize there is only so much time in the day that you can devote to watching TV shows or movies.

There is only so much time you can spend watching something, no matter how you access the movies or TV shows. There are only 24 hours in a day, and something’s got to give. I can understand if you are heavily into something like Netflix that you would cancel out HBO or Showtime, or other cable/satellite services.


4 posted on 06/15/2011 1:11:37 PM PDT by Dilbert San Diego
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To: Grunthor

Good move. Our kids only see what we want, when we want - and here’s the biggie - with NO COMMERCIALS.


5 posted on 06/15/2011 1:12:48 PM PDT by ctdonath2
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To: abb
I've had Netflix for about three years. I "cut the cord" to Cable about twelve years ago.

Netflix isn't that great. Their on-line delivery is nice, but the content they have to deliver is pretty poor, at least for my demographic.

It's kind of like a combination of 'lifetime' and 'Starz' (well, a lot of it actually is Starz). Lot of bummer "movies" you wouldn't want to watch. Their on-line "classics" are second-rate. Once in a while they put up a worthwhile movie or two. Maybe once a month.

Probably about the same frequency that HBO puts up something worth watching.

Of course, it's a lot cheaper than cable.

6 posted on 06/15/2011 1:14:11 PM PDT by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: abb

http://www.nypost.com/p/news/business/kicking_back_at_newsweek_CNN4lvDGdZUdSy5g9drp5I
Kicking back at Newsweek

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=152396
McGraw-Hill Puts Broadcast Biz Up For Sale

http://www.deadline.com/2011/06/warner-bros-lays-off-50-in-home-entertainment-consumer-products/
Warner Bros Lays Off 50 In Home Entertainment & Consumer Products

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=152457
FCC Chair: Broadband Critical To Economy

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=152435&nid=127873
Survey: Sure, We’ll Ditch Cable...Make an Offer!

http://www.broadcastingcable.com/article/469751-The_Cable_Show_2011_Genachowski_Broadband_Adoption_Just_Not_Good_Enough_.php
The Cable Show 2011: Genachowski: Broadband Adoption ‘Just Not Good Enough’

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=152429
Heavy Streaming Video Viewers Watch Less TV, Nielsen Says

http://www.gazette.com/articles/journal-119806-denver-sales.html
Sales talks break down between owners of The Gazette and Denver Post

http://online.wsj.com/article/SB10001424052702303848104576385490118144756.html
Regional Newspapers’ Merger Talks Break Down

http://online.wsj.com/article/SB10001424052702303848104576385983340864592.html
Cable-TV Executives Say Industry Rolls With Digital Age

http://online.wsj.com/article/SB10001424052702304906004576372573349258348.html
Daily Deals Rescue Local-Ad Market


7 posted on 06/15/2011 1:15:00 PM PDT by abb
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To: abb

Netflix may fray the cord, but I can’t see it getting snipped for that reason alone. Traditional cable companies carry a lot of live stuff that Netflix never will have (unless it, too, becomes another traditional cable company).

Now, I hardly watch TV at all, even free off the air, and have no cable service. I get my internet from my phone company. But enough people apparently like their bread and circuses well enough, and the circus part will never be duplicated in full by Netflix in its present conception.


8 posted on 06/15/2011 1:16:27 PM PDT by HiTech RedNeck (Hawk)
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To: Halfmanhalfamazing

Ping. See the two articles about Genachowski’s speech today. He’s not used the term “universal service” yet, but he’s hitting all around it.


9 posted on 06/15/2011 1:17:14 PM PDT by abb
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To: abb; Halfmanhalfamazing
This is what "net neutrality" is about. Cable ISP's are desperate to keep Netflix from poaching their TV cable customers, so they want to make Netflix streaming more difficult/more costly.

In a net neutral world, they would not be able to do so, any more than the phone company can charge you more to call Domino's rather than Papa John's, or the water company can charge you more per gallon for filling your pool than for washing your car.

10 posted on 06/15/2011 1:17:30 PM PDT by Notary Sojac (Populism is antithetical to conservatism.)
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To: abb

I cancelled most of my cable tv and went to Netflix. I’m trying to dump phone as well, because it makes me furious that my bill doesn’t go down when I want FEWER services. If I can find a substitute for internet, I’m dumping Comcast completely.

My daughter and I miss the Food Network, though. :)


11 posted on 06/15/2011 1:19:44 PM PDT by Politicalmom ("Obama has put the wrong gas in the tank of our economy."-Herman Cain)
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To: abb
The nice thing about Netflix is you don't have to pay for 500 channels you don't watch... If cable wants to keep my business they need to start charging per channel...
12 posted on 06/15/2011 1:21:06 PM PDT by GOPJ (In times of universal deceit, telling the truth will be a revolutionary act. - - Orwell)
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To: abb
Let's see, $8 a month to watch year-old cable TV shows I have never seen, or $100 a month to watch them when they are new?

Decisions, decisions.

13 posted on 06/15/2011 1:21:47 PM PDT by E. Pluribus Unum (If Sarah Palin really was unelectable, state-run media would be begging the GOP to nominate her.)
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To: abb

That bit in there about ISP’s and bandwith caps explains EXACTLY the sort of Net Neutrality one can argue in favor of.


14 posted on 06/15/2011 1:21:50 PM PDT by Buckeye McFrog
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To: GOPJ

Exactly.


15 posted on 06/15/2011 1:22:57 PM PDT by fantom (,)
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To: abb

I love Roku. I can choose what I want to watch from Netflix.

TV programming and cable is awful.


16 posted on 06/15/2011 1:23:38 PM PDT by OpusatFR
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To: Politicalmom

I dumped Brighthouse and ATT (for my landline) because I was paying about $180 for the phone, cable and internet.

Comcast bundled and I got the same service for $110. Now they say that was a just a promotional service and now my bill is up to...you guessed it, $180. COMCAST will be cancelled at my home this week or next and I might drip the cable altogether.


17 posted on 06/15/2011 1:25:30 PM PDT by subterfuge (BUILD MORE NUCLEAR POWER PLANTS NOW!!!)
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To: abb

I joined Netflix when it first opened, and shut off my cable a few months later.

Haven’t missed it at all.


18 posted on 06/15/2011 1:26:40 PM PDT by Psycho_Bunny (Public employee unions are the barbarian hordes of our time.)
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To: abb

When netflix gets the NFL, MLB and the NHL...I’ll think about “cutting the cable”...


19 posted on 06/15/2011 1:27:38 PM PDT by Skip Ripley
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To: abb
The solution to all this is for a "single-payer" communication fee for all communication services to the swells in Washington.

All that matters is that they get their hands on your money.

After that, good luck getting hold of a federal customer service rep.

20 posted on 06/15/2011 1:30:43 PM PDT by E. Pluribus Unum (If Sarah Palin really was unelectable, state-run media would be begging the GOP to nominate her.)
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To: Notary Sojac

Actually cable ISPs are perfectly happy with the customers dumping the TV part of cable, so long as they keep on the ISP part. The TV part of cable is quickly becoming the loss leader, with channels constantly increasing the price they’re charging the cable company which then either forces the cable company to increase what they charge which alienates customers or let the increase eat into their profit. The internet portion of their business is free of that, they just need to keep the throughput up, which is easier the more people that aren’t watching TV.

The problem with net neutrality is it puts the government in charge. ISPs are easier to replace than the government.


21 posted on 06/15/2011 1:31:02 PM PDT by discostu (Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn)
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To: HiTech RedNeck

I suggest that Netflix already is “another traditional cable company” that allows on-demand viewing and simply uses broadband fiber as the carrier instead of 75 ohm coax.


22 posted on 06/15/2011 1:32:51 PM PDT by abb
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To: Notary Sojac

On a conservative website? REALLY??

A ‘net neutral’ world? You mean a world where the government is brought in to regulate the internet? Of course, this is the benevolent version of the government who never oversteps its power and ALWAYS is out to HELP the consumer, right? Yeah, let’s totally let the government who told us that the income tax would never be more than 10% regulate the internet. Let’s let the government who promised us that Medicare would NEVER cost more than $9B regulate the internet. Let’s let the government who told us that they’d only withhold taxes from our paychecks until WW2 was over regulate the internet! That’s the ticket! YEAH!

Netflix is charging you for a service that is increasingly monopolizing the ISPs networks. Either the ISPs can work a deal with Netflix, which will cause Netflix users to pay more for Netflix, OR the government can step in with ‘neutrality’ and the ISPs shift the cost to the end users, so EVERYONE WITH AN INTERNET CONNECTION WILL PAY FOR YOUR DAMN NETFLIX!!!!!!!

You can shift it around any way you like, but that cost is going to have to be paid by someone. It would be a much wiser decision to let the private companies work it out rather than having Daddy Government come in and start ‘regulating’.

I don’t use Netflix. I don’t plan on using Netflix and I don’t feel I should have to pay for your Netflix.

If Papa John’s was pawning the cost of delivering a pizza onto the phone company, you can damn well bank on it that the phone company would want to charge them more for the effort. Then every idiot and his retarded cousin would be on forums demanding ‘Phone Neutrality’ because some leftist Soros funded group told them it was ‘necessary’.


23 posted on 06/15/2011 1:34:00 PM PDT by perfect_rovian_storm (We're stuck between Obama's policies that suck and his ineptitude that blows.)
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To: abb

The fiber lends itself well to delayed viewing, but the coax is designed for real time.


24 posted on 06/15/2011 1:36:46 PM PDT by HiTech RedNeck (Hawk)
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To: abb

http://www.reuters.com/article/2011/06/14/us-google-idUSTRE75D5C920110614
Google hones search for mobile and speed

http://www.bloomberg.com/news/2011-06-14/comcast-to-start-testing-remote-storage-video-recording-service.html
Comcast to Start Testing Remote-Storage Video Recording Service

http://www.videonuze.com/blogs/?2011-06-14/New-Research-Shows-Netflix-Is-A-Catalyst-for-Cord-Cutting-and-Cord-Shaving/&id=3101
New Research Shows Netflix Is A Catalyst for Cord-Cutting and Cord-Shaving

http://news.cnet.com/8301-30686_3-20071138-266/cable-fights-to-stay-relevant-in-online-world/
Cable fights to stay relevant in online world


25 posted on 06/15/2011 1:38:32 PM PDT by abb
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To: perfect_rovian_storm

And oh woe, what if some phone company wants to partner with Netflix and arrange for an optional, extra cost feed that’s local so its infrastructure burden is minimal? Wouldn’t the neutralites’ heads explode?


26 posted on 06/15/2011 1:40:52 PM PDT by HiTech RedNeck (Hawk)
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To: abb

Netflix has seriously screwed the pooch on their “New and Improved” UI. Announced on their blog; there are 5,000 comments (ALL NEGATIVE), and no more can be accepted.

Epic fail.

I’m about ready to call and cancel.


27 posted on 06/15/2011 1:40:52 PM PDT by AFreeBird
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To: Grunthor

Dropped Dish Network last year for Netflix over the Wii console. Just this month, dropped my ATT landline for DSL only. Just configured it last night. Switched to Vonage VOIP for landline. Please note that when you drop your landline, if you have DSL as well on the account from ATT it drops too and is less likely to be expedited for reconnect. We had 13 days without DSL.

We use internet for news, it even comes across on the Wii, all except local and we get that from the internet.

So far, no regrets. I hope to get Vonage connected tonight.


28 posted on 06/15/2011 1:41:50 PM PDT by OriginalChristian (The end of America, as founded, began when the first Career Politician was elected...)
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To: abb

I have seen a tip for saving money that says drop cable and use Netficks, so yeah, cable and dish buh bye, you can’t rip off people anymore.


29 posted on 06/15/2011 1:42:30 PM PDT by yldstrk (My heroes have always been cowboys)
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To: Notary Sojac
This is what "net neutrality" is about. Cable ISP's are desperate to keep Netflix from poaching their TV cable customers, so they want to make Netflix streaming more difficult/more costly.

In a net neutral world, they would not be able to do so, any more than the phone company can charge you more to call Domino's rather than Papa John's, or the water company can charge you more per gallon for filling your pool than for washing your car.


Yup - net neutrality is concerned with ISPs discriminating between different data protocols, services and content. The problem is whether letting the FCC/government have the mandate to define "neutrality" and when exceptions can be made is going to do more harm than good. Staving off ISP data discrimination by accepting FCC-approved data discrimination at the behest of political pressure groups like the RIAA or the PTC may be a net loss.
30 posted on 06/15/2011 1:43:28 PM PDT by AnotherUnixGeek
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To: AFreeBird

I’m told that new models of cell phones have similar teething problems, even the technicians don’t have them down flat yet, and still the public is clamoring for them.

C’est la vie de technologie.


31 posted on 06/15/2011 1:43:49 PM PDT by HiTech RedNeck (Hawk)
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To: perfect_rovian_storm
Actually, I think that I should have to "pay for my own Netflix".

I think everyone should pay for all the bandwidth they use, at the same price per unit of bandwidth regardless of what's being served up at the other end.

If a customer gets to watch all the HBO he wants for a flat rate per month, then the same deal should apply to Netflix.

32 posted on 06/15/2011 1:43:53 PM PDT by Notary Sojac (Populism is antithetical to conservatism.)
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To: abb

Here’s one family who cut the cord and went to Netflix. We’re saving a buttload of money going down the drain for 100s of channels of crap.


33 posted on 06/15/2011 1:44:07 PM PDT by thecabal (Redeem your mind from the hockshops of authority.)
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To: AnotherUnixGeek

That’s a fair point and worth noting.


34 posted on 06/15/2011 1:45:11 PM PDT by Notary Sojac (Populism is antithetical to conservatism.)
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A netflix HD movie uses about 3 gB. If cable companies want they can decrease the BW limits. AT&T DSL started in May with a 150 gB limit. Not too much of a problem. I believe some ISPs limit at 60 gB which could be a problem.

In an ideal world, there would be ISP choices everywhere, but...


35 posted on 06/15/2011 1:46:17 PM PDT by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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To: Notary Sojac

Don’t confuse burst rates of transfer with sustained rates of transfer or with gross quantity of downloaded data demanded by the customer. Optimizing each one calls for different strategies.


36 posted on 06/15/2011 1:47:16 PM PDT by HiTech RedNeck (Hawk)
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To: discostu
Actually cable ISPs are perfectly happy with the customers dumping the TV part of cable, so long as they keep on the ISP part.

So how come so many of them are capping/throttling their ISP services rather than the TV services?

How come no cable company has said "from now on your monthly payment only entitles you to 120 hours of TV a month"?

37 posted on 06/15/2011 1:47:47 PM PDT by Notary Sojac (Populism is antithetical to conservatism.)
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To: abb

I love Netflix and plan to downgrade cable.


38 posted on 06/15/2011 1:47:47 PM PDT by y6162
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To: abb

I can watch boring old shows that I choose for $9/month; or I can watch boring old shows that someone else choses for me for $80/month.

What’s the question again?


39 posted on 06/15/2011 1:48:28 PM PDT by Hodar (Who needs laws .... when this "feels" so right?)
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To: OpusatFR

I love Roku...

I too have had it for about 3 years. Last night I wanted to watch a streaming movie. When I fired up it would not let me on because my wife was watching one on another tv.

This is the first time this has happened. Has somthing changed?


40 posted on 06/15/2011 1:49:41 PM PDT by tall_tex
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To: abb

Now is the time to strike and deal a crippling blow tot he current TV model (infested by liberals) and help to replace it with one that is conservative or at the very least truly neutral.


41 posted on 06/15/2011 1:50:16 PM PDT by GraceG
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To: abb

I only use the cable company for my internet connection. I get basic cable anyway, which is more than I want. My son likes SyFy, I like FOX News and otherwise, we use NetFlix either by disk or streaming (again, piggybacking the internet connection).


42 posted on 06/15/2011 1:51:10 PM PDT by BelegStrongbow (St. Joseph, patron of fathers, pray for us!)
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To: abb

Well you still need high speed internet access for Netflix and that’s what many cable operators provide. So I don’t see “cable” simply disappearing. They are in time likely to become Internet providers first and foremost without great regard to what actual data services are provided over it.

And if you want Netflix in HD you need lots of bandwidth that most DSL connections can’t provide.


43 posted on 06/15/2011 1:51:44 PM PDT by DB
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To: abb

I’ve never had cable at all. Can’t afford it. But Netflix’s unlimited DVD/Streaming deal is about $10/month. That I can afford.


44 posted on 06/15/2011 1:51:58 PM PDT by Arthur McGowan (In Edward Kennedy's America, federal funding of brothels is a right, not a privilege.)
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To: abb

I’ve never had cable at all. Can’t afford it. But Netflix’s unlimited DVD/Streaming deal is about $10/month. That I can afford.


45 posted on 06/15/2011 1:52:07 PM PDT by Arthur McGowan (In Edward Kennedy's America, federal funding of brothels is a right, not a privilege.)
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To: Notary Sojac
How come no cable company has said "from now on your monthly payment only entitles you to 120 hours of TV a month"?

Because it's no skin off their established nose to deliver their promised content real-time, all the time. Get a programmable recorder if you want to catch, say, what HBO is showing at a time inconvenient for you.

46 posted on 06/15/2011 1:53:08 PM PDT by HiTech RedNeck (Hawk)
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To: Steely Tom

I agree, the movie selection tends towards the lame but I have found a huge amount of programming on Netflix, so much that I have more saved to watch than I’ll ever have time to see.

Right now, I’ve just started Lock-N-Load with R. Lee Ermy. I’m also watching Pawn stars which to my surprise is both educational and entertaining. I have dozens of TV shows saved that look interesting but I haven’t started yet. I cut the cord a decade ago so all of these shows are new to me.


47 posted on 06/15/2011 1:54:40 PM PDT by dangerdoc (see post #6)
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To: tall_tex

If you pay for 1 DVD at a time service you get 1 streaming video at a time. If you pay for 2 DVDs at a time you are allowed 2 streaming videos at the same time and so on.

Your Internet connection also has limited bandwidth and may not be able support multiple streaming videos at the same time, particularly if one or both are HD.


48 posted on 06/15/2011 1:54:57 PM PDT by DB
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To: abb

Already did it and do not miss the cable at all. I cut it off 4 months ago.

You can still go on news sites and watch the interviews.

Netflix, Hulu, etc... they are all pretty good.


49 posted on 06/15/2011 1:55:25 PM PDT by Sprite518
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To: abb

Just bought a Roku hooked that baby up to a 2TB HD. I rent movies from Netflix and RedBox and I burn them to the Roku. I get all the new releases on the market for a buck a piece. I then use Netflix to get premium cable shows from HBO, Showtime, and AMC. We’re saving a bundle, I do miss sports though, thanks Obama. :-/


50 posted on 06/15/2011 1:57:55 PM PDT by erod (Unlike the President I am a true Chicagoan.)
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