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Old 07-26-2012, 08:35 PM  
Ron Bennett
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Join Date: Oct 2003
Posts: 1,653
Main problem with Netflix is U.S. copyright law...

Physical DVDs can be rented to others without any interference. However, copyright-holders can restrict / charge royalties for content that's digitally delivered.

Most people don't truly understand how dire the situation is for Netflix - which is made worse by Netflix itself waffling on the issue, since they don't want to upset the copyright-holders for whom they depend on for much of their streamed content.

From my understanding, Netflix licensing costs are skyrocketing, as in 10x to even upwards of 100x what they were previous paying - and to make matters worse, some content isn't even being offered to Netflix at any price.

Also, Netflix financially is very limited compared to Amazon, Google, Microsoft, etc who have a lot of available cash to spend on licensing, as well as leverage.

In short, Netflix is a 1-1/2 trick pony - dvd rentals, which is rapidly fading (old Netflix), and streaming which is growing in popularity (current Netflix), but their licensing costs are growing far faster eating into potential profits; limiting growth opportunities.
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Last edited by Ron Bennett; 07-26-2012 at 08:36 PM..
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