Netflix Is Winning the Streaming Race–But for How Long?

http://fortune.com/2017/03/10/netflix-video-streaming-market/

by ptrptr • 9 years ago

18 22 9 years ago

For the second time in more than a decade I've been considering cancelling my Netflix account. There are two main reasons I haven't:

1. It is basically background-billing at this point. Like Netflix is something you have in your monthly bills like your power bill. It is just a part of life.

2. Their independent shows are a lot more crucial for keeping people like me around. I'm to the point where I almost want to put it on hold or just cancel it until the next favorite season of X comes out. In my case, Stranger Things this October.

However, like I mentioned, I've thought about cancelling and I doubt I'm the only one, so the article's quotes from Count Morningstar Research make sense to me.

ascagnel_2• 9 years ago

If you cancelled Netflix today and waited until 10/31/2017 (the release date of Season 2), you'd save $48-$72 (depending on which tier of Netflix you subscribe to). The big benefit of the "new" group of streaming services is that (with the exception of Amazon Prime) you can switch them on and off at will to save a bit of money here and there.

zelias• 9 years ago

Yeah, but is the money you save by doing this worth the headache of remembering to do it at all?

rdtsc• 9 years ago

I canceled my Netflix. I have been re-watching some older shows like The Office. I liked Stranger Things - a pretty well done show. But all in all I have not been using it.

Up until recently I was able to watch Netflix on my Ubuntu laptop via some user agent switching trick I found, but that stopped working recently, so that's another thing that drove the decision.

Also I have a an Amazon Firestick so unfortunately if stuff is available there I'd end up watching it there since launching Netflix app was another extra step.

jandrese• 9 years ago

I watch Netflix on my Ubuntu laptop using Chrome. No user agent switching or anything. You have to use full up Chrome from Google's repo, not Chromium from the Ubuntu repo. Chromium doesn't have the DRM bits that Netflix needs.

The other caveat is that Netflix hates my Hurricane Electric tunnel, so I have to sysctl off IPv6 when watching on the laptop. This is annoying but not Ubuntu's fault.

stormbrew• 9 years ago

Things that keep me with Netflix:

- I can watch their shows on any device, including my chromecast (unlike Amazon Prime Video) and linux laptops.

- I don't live in the US, so most of these alternatives just plain don't exist for me, and the local versions of them are mostly awful.

Sometimes I feel like these doomsaying articles (cfe also Uber) are coming from a hopelessly American perspective. They wonder "why is this company still so successful around the world when X, Y, and Z American competitors exist?"

Well, mostly because the rest of us don't have those options and so the one that actually takes a global perspective wins by default.

moonka• 9 years ago

- I can watch their shows on any device, including my chromecast (unlike Amazon Prime Video) and linux laptops.

In addition to the availability of the app, it's a much nicer app than Hulu or Amazon provides. I saw this as someone who mainly uses streaming on a Fire tablet and Fire sticks. The main benefit of prime over netflix was that you could download videos for flights, but netflix recently added that capability.

Nexxxeh3• 9 years ago

Both Netflix and Amazon Prime Video have their issues with different devices.

Especially on the PC, where Netflix only does 4K over "an HDCP 2.2 compliant connection to a 4K capable display, Intel's 7th generation Core CPU [Kaby Lake], and the latest Windows updates." Although they have now apparently added support for the Netflix App, so you're not still stuck using Edge.

APV doesn't do 4K on the PC at all.

Although both now support Linux in some form or other, which is nice.

bo10243• 9 years ago

A. The impending death of net neutrality in the US could (though I don't know the odds on this) throw a huge wrench into these works. Does it look likely in the next couple years that ISPs will be allowed to throttle Netflix in favor of their own services?

B. I hate that "the streaming race" is the only race in town. When will we have price-viable options to purchase, download, and own a movie? (Own: have control over, e.g. can store, back up, watch on any platform, etc.). The only options I know of are DRM-controlled like iTunes and even those cost orders of magnitude more than streaming by reasonable measures.*

*Netflix users pay about $10/month and watch on average about 45 hours/month of video (about $0.20/hour), while downloads cost about $20 per movie. If the downloaded two-hour video is watched five times on average, to pick a number out of a hat, that's still a cost of about $2/hour of watching.

tonyedgecombe• 9 years ago

I really don't want to own content anymore, it's just not worth the hassle, streaming is fine by me. I doubt I have ever watched the same film or TV series five times.

bo10243• 9 years ago

I guess I'm different because I'm often on a plane or train, in an airport, at a hotel, or living in a place where I'd like to watch a video but can't stream it (or not at a decent quality) due to internet availability at the time or locality restrictions. I also prefer FOSS operating systems where playing DRM'd content can be challenging or impossible.

Other reasons: data caps, privacy concerns (like when Netflix leaked the watching habits of a large portion of their viewers as part of their "challenge"), security (maybe I want to watch on a device not attached to the internet), etc.

I agree that 5 times seems high -- that just adds to the point that downloadable content and DVDs are overpriced relative to streaming.

mcv3• 9 years ago

Watch the same thing five times on average? What for? There's way too much other cool stuff to watch.

I admit our Thomas the Tank Engine DVDs have probably been played more than 50 times by now, so buying popular kids stuff makes sense (and these cost a lot less than $20), but for me, I generally prefer to watch something new rather than the same thing a second time.

The impending death of net neutrality is only a US thing. Netflix is more international than that. I doubt it's going to impact me much.

bo10243• 9 years ago

My point was that downloads are 10x overpriced even if you plan to watch them 5 times. If you watch it less, then they're just more overpriced.

The numbers I found (Netflix earnings report from Q3 and Q4 of 2016) seemed to indicate, if I'm reading it right, that they actually lose money internationally and are only profitable in the US. So I think they're in a very fragile position with regards to US policy changes.

hypercluster3• 9 years ago

I really want to like Netflix but unfortunately it just isn't enough. Sure the originals are good but the rest isn't very new and isn't very good. Some gems here and there but good movies are rare and the shows you want to watch are not included. This led me to get Sky(UK and Germany only I guess?). Quite expensive but at least lots of rotation and newish movies.

//edit: I wait until worthwhile seasons accumulated and binge watch for a month.

mcv3• 9 years ago

I'm regularly surprised to see some very new content show up. The MCU Marvel movies are nearly complete. (Winter Soldier is mysteriously missing, but Civil War is available.)

Star Wars 7 was also available surprisingly quickly. But Rebels still isn't for some reason.

Still, the selection is very good, and the Netflix Originals are among the best content available. You're unlikely to find them on another streaming service.

Nexxxeh3• 9 years ago

In the UK, you'd probably be better off with Now TV. It's basically Sky's IP-only platform. If you don't mind 720p and the lack of subtitles (with subs currently in closed beta), it's pretty cheap. Especially as you can buy a box with a code for 3 months Entertainment package for £15 with a free locked-down Roku box.

If you're actually IN the UK, they do a rather good DVB-T2 IPTV hybrid box called the Now TV Smart Box.

Although I'm the opposite entirely. Last thing I watched that was Sky-exclusive was West World. Netflix and Amazon Prime have been smashing it.

Black Sails is just about to finish up on Amazon Prime (exclusive) and I'm just getting up to current on Hell on Wheels, and the second season of Hand of God, having just finished binging Vikings and Patriot.

I'm looking forward to the full seasons of Jean-Claude Van Johnson, and The Tick, both having had well received pilots (as did Patriot.)

Netflix are about to release Iron Fist, which I'm chomping at the bit for. Luke Cage was a bit of a let down for me, but only in the context of DD and JJ which were superlative.

They've brought scifi ranging from the gourmet The Expanse to junkfood Killjoys, including the rather enjoyable Travellers. (Weirdly I watched the season of Hell on Wheels where they changed a character's actress to MacKenzie Porter, after watching Travellers.) Stranger Things, ASoUE, Narcos, the new season of Black Mirror (having moved from Channel 4), the surprisingly excellent Shooter...

And Arc, Gantz: O, iBoy, Santa Clarita Diet, Kuro Mukuro, Aldnoah Zero, Ajin: Demi Human, Your Lie In April, Better Call Saul... There's no shortage on new varied content that I've thoroughly enjoyed.

I've still got some new-ish Sense8 and the second season of Bloodline to watch.

I can't think of a month that hasn't provided a new influx of excellent content on both platforms.

hypercluster3• 9 years ago

I'm from Germany but we do have those Sky Tickets as well. It's tempting but if you get both tickets (Entertainment and Movies) then it's actually as expensive as the real thing here. Plus there's always content that's exclusive to TV.

I didn't like the Netflix Marvel stuff but you're right there are good shows on there no question. I enjoyed The Expanse and Killjoys too (on Sky) but good to see that those are available too (although Killjoys not in Germany it seems..). But as soon as the second seasons of The Expanse starts it will take a while until Netflix has it whereas Sky will show it sooner (or did Netflix get better with this?).

mcv3• 9 years ago

This is just one pessimistic investor. Many think that Netflix will continue to grow. As a user, I think Netflix is getting a lot of things very right. Their original content is really, really excellent, and they make it really easy to keep track of where you are in a long series (unlike when I'm recording something from TV, for example).

Netflix Is Winning the Streaming Race–But for How Long?

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