Will Netflix Survive a Future Without DVDs?

By Chris Crum - Sat, 07/05/2008 - 16:20

How distant is this future anyway?

There have been questions as to whether or not Netflix will be able to survive the future where DVDs are obsolete.

Many don't think they will be able to compete with companies that offer downloadable and streaming movies via set top boxes.

Of course the Roku was released a while back offering Netflix movies via such a box, but a very small percentage of Netflix's inventory is actually available through it so far (Roku has just announced that it is teaming with more content providers, so owners of the box won't have to settle for just the limited Netflix selection).

Betsy Schiffman at Wired.com doesn't think Netflix's future is so gloomy, and neither do I (a happy Netflix customer of 5 years), especially when the company grew its subscriber base by 21% last quarter.

Mary Jane Irwin at Forbes.com notes that besides Roku, Netflix has recently partnered with LG Electronics and two other suppliers of set-top boxes, with Micosoft's Xbox speculated to be a potential partner.

It is going to take some time for Netflix to offer their entire catalog in the streaming format, but I believe it will eventually get there, and their catalog is quite an extensive one.

I honestly don't see them having much trouble competing when DVDs become obsolete. I think they've got time to prepare before that's really a factor anyway, especially in an economy where many are struggling to even afford broadband Internet access.

News Tags: Technology, Financial, Roku, Netflix

About the author:
Chris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003.

6 Comments

By http://lowongan-pekerjaanterbaru.blogspot.com/ (WPN reader) - Tue, 03/17/2009 - 09:53

I don't think so

By TC (WPN reader) - Tue, 03/03/2009 - 13:19

Oh ya der ded alredy

Get over it. DvDs will go the way of the Hi-8 and Digital Tapes in Camcorders; by way of reverse logic:

SOMEONE PLEASE FIND ME A NEW CAMCORDER THAT USES TAPES INSTEAD OF DVD OR HARD DRIVE.

Satisfaction with DVD camcorders: ZERO

Satisfaction with Hard drive camcorders: about 10% of owners

Satisfaction with clunky mechanical tape camcorders: 100%

Do the math.

If you cant get camcorder tapes and DVD camcorders are unreliable at best, hard drives are the future. Meaning, anything with moving parts is going to be GONE; funny thing is the price of the thing without moving parts is going to go UP.

That's called Profiteering. You cut manf. costs so you can increase the price of a good, NOT give the consumer a lower price.

This is the reverse logic of the world we are in. Regarding bandwidth restrictions: WHO on earth is surprised to hear this reality? This happens because a few guys OWN the lines, the cable lines. Until you and I can own those lines, we are at the mercy of the three people who do.

And if you think there's more than three... you probably believe DVDs will be around for a LONG LONG time.

DVDs will be gone in less than 5 years.

By Commercial Lighting Guy (WPN reader) - Mon, 07/07/2008 - 09:51

I cast my vote for

I cast my vote for Netflix going under. I think ondemand is just too big of a force to be reckoned with.

By kb2504 (WPN reader) - Sun, 07/06/2008 - 20:48

DVD's Will Not Become Obsolete

All this talk of DVD's becoming obsolete is getting ridiculous. DVD's will not become obsolete due to the massive tax on bandwidth HD movie downloads will entail. ISP's are already moving towards metered bandwidth caps and the dearth of true high speed broadband in the United States will cripple the streaming distribution of movies. It wil simply be too expensive for the majority of people. The downloading of one or two HD movies will use up most of the bandwidth allotment of many of the proposed metered billing models of the ISP's.

DVD's and Blu-Ray will be with us for years and years.

By Tony Clifton (WPN reader) - Sun, 07/06/2008 - 00:37

Roku

I love Netflix, too, and have had Roku for about a week. It is total CRACK ... watch out! I have been logging about 4-6 hours a day on Roku, maybe more. Somebody make me stop!

By Chris Crum - Sun, 07/06/2008 - 16:07