Posts tagged with Dv Ds

Did Netflix just make a huge multichannel mistake?

With a market cap of over $15bn and a share price of $290, Netflix is one of the internet's highest flying stars. But changes the company is making to its pricing could have it crashing back down to earth.

Yesterday, the company announced that it is offering two separate plans going forward: one for unlimited DVDs by mail, which costs $7.99/month, and one for streaming, which also costs $7.99/month. Currently, Netflix customers can receive both unlimited DVDs and streaming for only $9.99/month.

Not surprisingly, a 60% price increase has sparked an online fury, with angry Netflix customers threatening to drop their Netflix subscriptions.

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Q&A: Lovefilm CEO Simon Calver

I've been speaking to Lovefilm CEO Simon Calver about how the business will evolve digitally over the next few years, and his views on customer retention and social media.

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Do cheap rentals hurt DVD sales? We may soon find out

Movie studios think cheap DVD rentals are a major factor in DVD sales that have been on the decline for some time. And now one of those studios, Warner Bros., may have the ability to prove the theory right or wrong.

That's because rental giant Netflix has inked a deal with Warner Bros. under which Netflix won't rent new Warner Bros. releases until they've been on sale for 28 days.

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Could Amazon's Disc+ On Demand rescue DVD sales?

Selling DVDs is a tough business. Just ask movie studio execs, who have watched as digital downloads and cheap rentals have cut into what was once a far more lucrative business. DVD sales started declining years ago and the pace of the decline isn't slowing. In the first half of the year, sales fell more than 13%.

So what's a studio exec to do? Right now, some seem willing to do whatever it takes to beat back the rise of rentals. But perhaps they should instead be having lunch on a regular basis with Jeff Bezos as a new Amazon.com promotion might be worth a look as a new business model.

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