Netflix recently shipped their 2 billionth DVD and the company now claims over 10 million subscribers. Not too shabby for an upstart that dared to challenge the dominance of Blockbuster Video just a few years ago.
Netflix is booming these days, even at a time of economic uncertainty. And perhaps it’s because of the current economic uncertainty that the company appears to be doing so well. When times are tough, obviously, many people prefer to stay in for their entertainment to save money. That’s where Netflix comes in; and the company has even lowered their subscription fees over the past year to ensure they keep longtime customers, while attracting new ones.
But although Netflix is known primarily as the company who mails DVDs to your home for a small monthly subscription fee, there is another side of the Company’s business model that is beginning to become more prominent: streaming on-demand movies and television shows.
Netflix’s “View Now” feature started out looking like an afterthought. There weren’t many titles to choose from in either the film or TV categories; and those that were there were often decades old and, how can I say this politely, not exactly Oscar winners…
Along with other recent changes to Netflix business model, the company seems be taking streaming on-demand programming seriously. Every week there are more (and better) films available and more up-to-date television shows, including some pay-TV favorites.
Netflix members can’s stream and unlimited number of on-demand films and TV programs (with most subscription plans), making it easy to schedule films and programs you want to see around your own busy lifestyle. And of course, because it’s a paid service, there are no commercial interruptions, like those that plague streaming video sites such as Hulu.com and these days, even YouTube.
Netflix started out as a DVD shipping company, and no doubt they will continue the practice in the future. But obviously, they also see the writing on the wall: the DVD as we know it will likely cease to exist within the next 10 years (yes, you too Bluetooth). Streaming on-demand video, on the other hand, is only going to increase in popularity. Netflix is wise to cut out the middleman by providing as many titles as possible for instant viewing online.
Think about it; it wasn’t so many years ago we were all buying and listening to CDs. These days a CD is practically a relic from a bygone era. And there is every reason to believe that the DVD will follow suit. It’s not a question of “if,” but “when.”
