Entertainment

Netflix deep in debt

  • Last Updated:
  • Jul 5th, 2018 6:24 pm
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zod wrote:
Aug 4th, 2017 3:30 pm
I think that's completely failed logic.

Yes the lower you price something the higher the demand gets. Therefore at zero price you will have near-infinite demand. That doesn't mean offering stuff to people for ridiculously low prices will make you profitable in the future. you need to work out the math. If we make a $5 package that offers 10 hours of content per month, how many people will replace their 9.99 subs with $5 subs, and how many new subs do we need to get to cover that loss, before it starts to come out ahead.

I think $8 and $10 is pretty good pricing. If you start buying content straight up from itunes or amazon (not streaming) it's 1.99 for an SD episode, 2.99 for HD, and $5 or $6 for a movie?

I also don't think you can compare youtube/twitter/facebook to netflix. Those 3 services primarily rely on free user generated content and ads. Netflix is a combo of the old and the new. They make scripted television and movie programming but offer it commercial free without ads for a monthly price. I don't really see that them as the same thing. I also don't think Netflix would be successful if they put 30 second ads before their tv/movies. People would revolt. They already do product placements, so thats ok, but the second they put actual commercials in, they become classic TV which people have revolted against.
I'm still on the idea that a slightly lower price gets more people in. Free was done when Shomi shut down. The free promotion is now over. I got sucked in but a dollar less is all they have to do to keep me.
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playnicee1 wrote:
Aug 7th, 2017 4:27 pm
I'm still on the idea that a slightly lower price gets more people in. Free was done when Shomi shut down. The free promotion is now over. I got sucked in but a dollar less is all they have to do to keep me.
Except they have something like 100 million viewers. They'd need almost 10 million new subs solely from the price cut to cover the 100 million they'd instantly lose from dropping the price $1 (Above and beyond their current rate of growth). For me the $1 doesn't really matter. So dropping the price $1, they automatically lose $1 from me they would of gotten anyways.
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zod wrote:
Aug 8th, 2017 12:00 am
Except they have something like 100 million viewers. They'd need almost 10 million new subs solely from the price cut to cover the 100 million they'd instantly lose from dropping the price $1 (Above and beyond their current rate of growth). For me the $1 doesn't really matter. So dropping the price $1, they automatically lose $1 from me they would of gotten anyways.
Canada & USA are not the same Netflix. I'm talking about Netflix Canada. The dollar less will generate better revenue, if not from the regulars, indeed from those who are on the fence about whether to keep it or not, (or bother with it at all) especially when Superchannel is completely free until September 2018, at which time they will be asking for $9.99 a month.
I do believe that charging less in Canada will lead to greater revenue for Netflix. I'm not sure about the American side though.
& I am saying no to Netflix if they don't drop it a dollar...so....
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zod wrote:
Aug 8th, 2017 12:00 am

Except they have something like 100 million viewers. They'd need almost 10 million new subs solely from the price cut to cover the 100 million they'd instantly lose from dropping the price $1 (Above and beyond their current rate of growth). For me the $1 doesn't really matter. So dropping the price $1, they automatically lose $1 from me they would of gotten anyways.
THIS. Why are people thinking that a buck would make a significant difference in the number of subscribers? It's not like people are saying "Oh, I wish Netflix wasn't so damn expensive... if it weren't so expensive, I'd definitely subscribe to it"
playnicee1 wrote:
Aug 8th, 2017 5:31 am
Canada & USA are not the same Netflix. I'm talking about Netflix Canada. The dollar less will generate better revenue, if not from the regulars, indeed from those who are on the fence about whether to keep it or not, (or bother with it at all) especially when Superchannel is completely free until September 2018, at which time they will be asking for $9.99 a month.
I do believe that charging less in Canada will lead to greater revenue for Netflix. I'm not sure about the American side though.
& I am saying no to Netflix if they don't drop it a dollar...so....
I'm still of the mind that limiting sharing by a bit (but not completely eliminating it) will help them increase subscribers, while also not losing out on revenue. Their current pricing structure isn't what's holding people back from subscribing, as it's very reasonably priced as it is – plus provides opportunities for simultaneous viewing.

I doubt that a dollar decrease will actually raise their subscriber rate significantly... if anything, it might just prompt more people to share. Since the Premium account allows for four simultaneous viewing devices (versus 2 with the regular account), if the price dropped by a dollar unilaterally, people would just move up to that one, and then will share with their family or friends, who will either cancel theirs, or are new, non-paying users.
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M1GOmigs wrote:
Aug 8th, 2017 10:29 am
Since the Premium account allows for four simultaneous viewing devices (versus 2 with the regular account), if the price dropped by a dollar unilaterally, people would just move up to that one, and then will share with their family or friends, who will either cancel theirs, or are new, non-paying users.
That sounds bang on. The exact problem might be that there is no actual way to bill to an account for use on only one ip address.
Former Shomi customers also deserve a break, (discounted price) but unfortunately Rogers/Shaw lost their ability to control pricing when they gave up Shomi.
Currently, it looks like Rogers (and others?) shook hands with Super channel, as that is completely free. (as I've mentioned) until September 2018 for paid cable customers.

Also, the reason why I mention the dollar less is because I didn't want to come across as someone that expects Netflix to be completely free, but I'll still throw stronger support behind it for only a dollar less.
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The fact Disney is pulling their movies from Netflix won't help.
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scoper wrote:
Aug 8th, 2017 8:29 pm
The fact Disney is pulling their movies from Netflix won't help.
Disney's streaming service will be as popular as ESPN seems to be these days. Only rich parents with little kids will subscribe, think Disney TV channel types.

They've got Marvel & Star Wars movies to rely on. Who hasnt seen those already? who doesnt have them on bluray?

I think its a really bad idea for Disney to invest in streaming services in an oversaturated market. They have the money for it, but they wont be making money from it.
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chimaican wrote:
Aug 1st, 2017 2:56 pm
Well, a smart economist would understand that lowering fees will increase subscribers leading to more profit, however, most CEOs and upper management are not smart, they always raise prices to appease shareholders.
You are only looking at half the equation. If they lower prices and thus gain more subscribers, they will also have to invest in more infrastructure to support these new customers. More bandwidth, more servers, more staff to maintain everything.

The secret is to keep the price constant when everyone else is raising prices.
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playnicee1 wrote:
Aug 8th, 2017 5:14 pm
That sounds bang on. The exact problem might be that there is no actual way to bill to an account for use on only one ip address.
I responded earlier to someone who had the same issue - but I'm not saying limiting it by IP address... but just lessening the amount of sharing options per account. Make it so that the "regular" account doesn't allow for simultaneous viewing, and then dropping premium accounts down to 3 or even 2 simultaneous viewing devices.

Also, moving other extraneous features like downloads to the premium level I think is fair. I don't think they would lose too many subscribers because of these moves, but it will prompt people like both my brothers in law, my parents, my friends and some of my sister's friends who all share accounts with their friends or extended family to actually subscribe to get their Netflix fix. Again, it's only $10 a month for regular subscription, which they can all afford.
scoper wrote:
Aug 8th, 2017 8:29 pm
The fact Disney is pulling their movies from Netflix won't help.
Maybe this helps Netflix's bottom line though... forces more people to spend their time with Netflix original content, and it means less royalty fees get paid to Disney whenever my daughter watches Moana on Netflix (I guess I'll just have to buy the Bluray).

In the two years that Disney stuff has been on Netflix, I keep telling myself I should watch the content, and yet I always pass it by anyway because I've seen the movies in theatres or rented it on demand. Literally the only Disney-owned thing we watched in full has been Moana... and that's only because of my kid.
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I agree on the first thing about limiting sharing. I also didn't think they should restrict it to a single IP, but possibility limit the amount of IP's that can simultaneously login. That way you can have multiple streams in your own house, but someone else can't login at the same time (which obviously the major drawback is if people travel, they can't use it on the road while their family uses it back home).

I also don't watch Disney stuff via Netflix, but what makes Netflix's streaming service different than the competitors is that they offer original content and 3rd party content. Most other services springing up are charging similar prices for their original content only. I primarily watch originals on Netflix, but I would feel that would be less value to me if the 3rd party content dried up.
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Buggy166 wrote:
Aug 9th, 2017 2:05 am
Disney's streaming service will be as popular as ESPN seems to be these days. Only rich parents with little kids will subscribe, think Disney TV channel types.

They've got Marvel & Star Wars movies to rely on. Who hasnt seen those already? who doesnt have them on bluray?

I think its a really bad idea for Disney to invest in streaming services in an oversaturated market. They have the money for it, but they wont be making money from it.
Just Pixar itself is way better than any Netflix garbage

Netflix original are mostly garbage and Netflix has a very very thin library of decent original content compared to everybody else let alone Disney

Disney also own ABC , DreamWorks, A&E, history, espn etc

Netflix is garbage for acutal content they own and have zero decent movie of their own
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zod wrote:
Aug 9th, 2017 11:40 am
I also don't watch Disney stuff via Netflix, but what makes Netflix's streaming service different than the competitors is that they offer original content and 3rd party content. Most other services springing up are charging similar prices for their original content only. I primarily watch originals on Netflix, but I would feel that would be less value to me if the 3rd party content dried up.
Yeah, not to say that the 3rd party content is unnecessary, because I watch quite a bit of 3rd party stuff. Thankfully Netflix is investing a lot in their 1st party content though, and I feel like the ratio of 3rd vs 1st party stuff I watch is shifting to Netflix's advantage. I'm actually curious about how they pay out for 3rd party content though, and I wonder if they pay more to big names like Disney... and if so, then good riddance. I love Marvel and Disney movies but I catch those in theatres. And Netflix will retain their originals so the actual good Marvel shows will remain.

But man, if WB/Paramount/Universal/etc all decide to leave and do their own streaming services, this will be a bigger mess than cable...
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Doubleshot wrote:
Aug 9th, 2017 12:00 pm
Just Pixar itself is way better than any Netflix garbage

Netflix original are mostly garbage and Netflix has a very very thin library of decent original content compared to everybody else let alone Disney

Disney also own ABC , DreamWorks, A&E, history, espn etc

Netflix is garbage for acutal content they own and have zero decent movie of their own

Well, Netflix started making original content, what, 2-3 years ago? Disney is approaching 100 years. HBO also has a few decades. That's not really a debate, its just time.

As for Netflix originals being mostly garbage, have you ever seen Disney's direct to DVD movies? lol

Disney doesnt own Dreamworks, Universal does.

What was the last time anyone subscribed to Netflix just because they were itching to watch A&E, ABC, History or ESPN channel content? Wanna talk about garbage, can start with 99% of the content of those channels.

Pixar movies are already easily accessible everywhere else. Also, whens the last time you saw an adult sign up to a monthly streaming service because of a dozen pixar movies they've already seen before, and probably already own on bluray?

The 1 thing i never watch on Netflix is Disney movies. I already own them on bluray, or if i dont, i already saw them in theaters. Netflix movies or content i like, is only accessible on Netflix. Not in theaters, not on blu-ray. What are the chances of Disney doing the same? Below 0%.
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Buggy166 wrote:
Aug 9th, 2017 1:13 pm
Netflix movies or content i like, is only accessible on Netflix. Not in theaters, not on blu-ray.
You can buy some of the better Netflix shows like House of cards, orange...black, daredevil on bluray
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warpdrive wrote:
Aug 9th, 2017 1:16 pm
You can buy some of the better Netflix shows like House of cards, orange...black, daredevil on bluray
Thats the earlier stuff, when they just started creating content. I havent seen any newer shows on blu-ray. Movies neither.

The Marvel shows, I'm not sure if they own the rights outside of network or streaming distribution.

http://www.cinemablend.com/television/1 ... he-details

Amazon doesnt seem to be releasing their shows either.

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