Sunday, 1 May 2011

Media Moguls Ask: Is Netflix Friend Or Foe? (Deadline Hollywood)

Netflix last week was the object of�envy and�fear. The firm that?s evolving
from DVD-by-mail provider to Web video subscription service showed�in latest
quarterly earnings that it?s growing at an astonishing rate. By charging as
little as $7.99 a month, Netflix signed up 3.6 million new subscribers in the
first three months of 2011 giving it a total of 23.6 million. That?s a 69%
increase in just one year, and puts Netflix ahead of Comcast and Sirius XM.
Still, media executives don?t know what to make of the company. Is it friend
or foe? Is it just another customer for studio-produced movies and TV shows
looking to complement existing broadcast and pay TV providers? Or is Netflix
poised to become a competitor to existing channels ? and even a formidable new
gatekeeper for Internet entertainment? The most realistic fear is that Netflix
will amass enough subscribers so it can dictate prices to studios that want to
transmit their entertainment over the Web to PCs, smartphones, and tablet
computers -- as well as living room TV sets.�If Netflix keeps its subscription
price low, then it also may devalue all entertainment: A $4 charge for a VOD
movie ...
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