Thursday, April 15, 2004

The economics of Netflix.

Okay, I really like Netflix. I think I've mentioned that before. Great selection, great "late" policy (you never have a late fee; you return the movie when you are ready for a new one); great service (mailing is covered, both ways). Here's an article from the LA Times interviewing the founder of Netflix, and his hopes that Netflix can change the economics of Hollywood by making "small" movies reach enough of an audience that they are affordable to make.

The interview also touches on the challenge from other DVD rental companies, notably Wal-Mart and Amazon. (Conclusion: Wal-Mart does real well with its bricks-and-mortar stores, and not so well online, and this is an area where they're really not succeeding, and Amazon is the competitor they fear, although my guess is that Amazon's wide sales focus will keep them from being successful in the DVD rental arena.)

And there's a hint that Netflix will go into downloading movies (for rental) within a year or two. Not to PCs, probably, but to other - and probably wireless - devices in the living room, such as a digital input to a TV.

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