Netflix in it for the long haul

March 2, 2005

dvd-caseThe bid for your DVD rental dollars is a cut throat business, as this statement from Netflix should indicate. “Correct,” Hastings (Chief Executive of Netflix) said when asked if he was prepared to sacrifice profitability for as much as five years in order to reach 20 million customers, up from 2.6 million currently.

“That’s true. We haven’t given any guidance on it so therefore it’s possible,” he told the Reuters Technology Summit in San Francisco. I don’t know about you, but I’m not willing to skip a paycheck much less a few years worth.

Hastings went on to say Netflix aimed to capture 20 percent of the 100 million U.S. households that own DVD players. I honestly find it a little odd that in this day of on-demand, PPV and total media penetration from satellite and CATV, that a company sees such a future in delivering DVD’s via the US Postal service.

I suppose bandwidth is the answer, yes we have a lot more of it than years past, but still not enough to be able to deliver anything anytime, something Netflix can do now (with regards to DVD that is).



Posted by Bryan Greenway | | Filed Under Home Theater News


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