Netflix became the past year's best performer on the S&P 500.

Quote: Pacomartin

It would be interesting to know precisely why HBO is more profitable. I suspect that they have less infrastructure to worry about. Since they have the ability to ride on RF technology developed a half century ago, their infrastructure cost is developing HBO-GO. But that is still a small percentage of their users.

Netflix, on the other hand, has to push everything through digital media. That means they must be investing in a lot of technology that they are giving to the cable company.

Not to mention the fact that Netflix has to pay for the rights to almost the entirety of their content whereas HBO has original programming, with respect to series programs, and is paying for the rights to fewer movies at any given time.

Quote: Mission146

Not to mention the fact that Netflix has to pay for the rights to almost the entirety of their content whereas HBO has original programming, with respect to series programs, and is paying for the rights to fewer movies at any given time.

Original Programming is almost always more expensive than paying for rights to movies. However, HBO's original programming is often sold in DVD's.

Now Netflix can sell their series, just like HBO, but it is cheaper just to join Netflix and watch it there. Even the low price standard DVD of $20 will buy you three months membership into Netflix. To get HBO you must pay for basic cable, and then it could cost $10-$18 per month additional.


HBO: Game of Thrones: First Season
[Blu-ray] List Price: $38.99
[Std-DVD] List Price: $28.99

Netflix: House of Cards: First Season
[Blu-ray] List Price: $65.99 On Sale : $47.35
[Std-DVD] List Price: $55.99 On Sale : $19.99


Netflix per customer domestic figures
Revenues $127.97
Cost of revenues $79.21
Marketing $12.41
Contribution profit (loss) $36.34

My daughter watches NetFlix all of the time, and we have it hooked in to two our laptops, our DVD player on our main TV and the Wii in the basement, all for $8 a month. We're in Canada, and NetFlix knows that, so we are restricted in content when we are not on our laptops (when we are on our laptops, we can use a little service to get the US content). She gets her Dr. Who fix that way.

However, the offerings are not great for current stuff and are quite limited. i think that if NetFlix went to a $15 - $20/month model they would lose alot of customers. I also don't think that their original programming offerings in 4K will go very far in creating the media. One problem is that the ComCasts / TimeWarners of the world charge for excess bandwidth which is still limited. 4K will eat that up fairly quickly. And download speed limitations can still be a factor.

Here in Canada, I pay about $70/month (well, my work pays) for my Bell Fibe internet with 65 GB a month usage and a 16 megabit download rate. We consistently hit about 50 GB/month, more when my daughter is hanging around the house because she's watching movies.

Quote: boymimbo

My daughter watches NetFlix all of the time, and we have it hooked in to two our laptops, our DVD player on our main TV and the Wii in the basement, all for $8 a month. We're in Canada, and NetFlix knows that, so we are restricted in content when we are not on our laptops (when we are on our laptops, we can use a little service to get the US content). She gets her Dr. Who fix that way.

There is a way to fix this. If you have a Roku you get an app called Twonky and you "beam" it from an iphone or tablet to the TV. Trying to get the beam to work in my house so I can write a report.

Quote: boymimbo

Here in Canada, I pay about $70/month (well, my work pays) for my Bell Fibe internet with 65 GB a month usage and a 16 megabit download rate. We consistently hit about 50 GB/month, more when my daughter is hanging around the house because she's watching movies.

Here in PA we can get 25 megabit per second download rate with no data cap for $40|$50|$60 a month for years 1,2, and 3. I am not sure what the real advantage is of having fiber to your home, unless you are going to pay for super high speed internet.

It's called Bell "Fibe". I doubt it's true Fibre optic. But it's our phone company providing the bandwidth via telco lines, not cable.

Quote: boymimbo

It's called Bell "Fibe". I doubt it's true Fibre optic. But it's our phone company providing the bandwidth via telco lines, not cable.

I looked it up. Bell "Fibe" is Internet Protocol television (IPTV), but not necessarily fiber to the home.

Netflix are suggesting that prices will go up a buck or two for new subscribers in the coming year.

http://www.reuters.com/article/2014/04/22/us-netflix-results-idUSBREA3K14N20140422

Doesn't surprise me, and have often said I'd paid more the service.

Netflix is available on three cable companies starting tomorrow. All three companies use TiVo for their set top box (with CableCard). RCN, Grande Communications and Atlantic Broadband have roughly 500K customers using the TiVo.

I don't think you will be permitted to record the Netflix shows onto the TiVo DVR.

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Quote: Pacomartin

AT&T Launches $500M Joint Venture To Invest In The Next Netflix

Netflix has a revenue of $4.37 billion in 2013

On July 31, 1995, The Walt Disney Company and Capital Cities/ABC announced their intention to merge for a total of $19 billion.
ABC had TV/Radio revenue in 1995 of $5.7275 billion after which it was reported under Disney Media Networks.
ABC broadcast division reported revenue of $5.815 billion in the last Disney annual report (for this year ending September 29, 2012).

To be fair ABC has lost most of their sports revenue to ESPN, but it is clear that Disney made a killing on ESPN, even though it was perceived that ABC was the crown jewel in the acquisition.

But I am not convinced that some larger company is going to sweep in and steal Netflix business. Clearly Disney already owns a huge inventory of valuable programming, so if they ever decide to sell it via a streaming media, they should catapult to top position.

Season 3 House of Cards starts on the 27th.
Yay..