Netflix’s streaming service could help the online DVD rental pioneer double its 10 million subscribers to about 50% of the combined subs of HBO, Showtime and Cinemax, said CFO Barry McCarthy.

Speaking May 18 to a J.P. Morgan investor conference in Boston, McCarthy said the Los Gatos. Calif.-based company’s Watch Now streaming service could help it attain anywhere from 20 million to 40 million monthly subscribers.

“We think [offering streaming] will be a larger market opportunity than the DVD-by-mail business has been because it offers greater convenience,” he said. “How large it becomes depends on the value the value-proposition becomes, meaning the monthly price.”

With its streaming service offering about 16,000 largely catalog titles (compared to 100,000 DVD titles), McCarthy sounded irritated at what he characterized as “uninformed” press reports about the quality of Netflix streams, including a dearth of new-release titles.

The CFO said the majority of new-release content (day-and-date with DVD) is held by cable operators — a reality that prompted Netflix’s third-party license agreement with Starz.

“Whether the cost of acquiring those rights is economical for us turns entirely on our ability to grow our subscriber base,” McCarthy said. “If we do that well, I think there are attractive economics, and if we do it poorly, clearly there aren’t.”

He said that of the three available business models for electronic distribution — pay-per-view, ad-supported and subscription — only the latter appeared economically feasible to Netflix.


http://www.homemediamagazine.com/netflix/netflix-cfo-streaming-offers-greater-opportunity-dvd-mail-15785

To respectfully paraphrase the old Bill Clinton line;

IT'S THE IMAGE QUALITY, STUPID

NETFLIX's streaming image quality is presently, in a word,
TERRIBLE and that should be unacceptable to everyone
. . . . even to those who don't at present notice that it's terrible -- people's tastes and their gear will change.
What looks "fine" on a laptop or an I-POD doesn't look so
fine on a 60 inch HD plasma. . . and don't forget the total lack of lossless audio formats and the total lack of commentaries and extra features.

MP3 and the I-POD pretty much killed the concept of
HIGH FIDELITY AUDIO . . . .

. . . . and NETFLIX STREAMING pretty much threatens to
do the same to the concept of HIGH END HOME VIDEO.

The problem with LOWERING THE DIGITAL QUALITY BAR
now is that it becomes virtually impossible to raise it
later without a radical change of format. . . .


I would actually LOVE to be proven wrong . . . .

NETFLIX wants to be "encouraged" to improve it's
image quality [ and audio quality ] -- as does I-TUNES to be fair -- rather than
seeking the force the lowest common denominator approach on the market.

So, Mr. Hastings, I would consider using your service when and only when you can offer me streaming and/or short term downloads -- which is preferable -- in HIGH BANDWIDTH FULL HIGH DEFINITION . . .
AND, or course . . . with lossless audio and ALL the extra features
of Blu-Ray

PERIOD



-30-

Then don't use it.

I hope no one uses this - I am tired of technology that goes backward in quality. We all suffer

I hope no one uses this - I am tired of technology that goes backward in quality. We all suffer

Then don't use it. Why are you in here anyways?

I use it all the time (3-4 times per week, anyways) and am very happy with it. Contrary to popular believe by blu-bois, not everything worth watching is on Blu-Ray, nor does everything worth watching need to be.

I watch the Blu-Ray if it's available (especially if it's a heavy surround-sound of sfx movie), but I also have about 75 movies in my instant queue that aren't on Blu-Ray. I'm perfectly happy having access to them at anytime without having to wait for it to be "available" and then the shipping turnaround....or having to spend $20-$35 for the disc.

Terrible might be a bit of an overstatement, but I would agree the current Netflix Watch Instantly encoding quality is rather disappointing when viewed on a larger TV screen.

But I don't think we need full HD and lossless audio to be useful. Just getting the encoding quality up near standard DVD level would be a huge improvement for viewing on full size TV screens. (I use the Roku box).

Given the studio licensing limitations on HD streaming, I would rather see the majority of the Netflix streaming library get upgraded to DVD quality encodes. On my 50" HD plasma, the difference between Netflix streams vs Netflix mailed DVDs is far more noticeable than the difference between DVD and Blu-Ray, for example.

Then don't use it. Why are you in here anyways?
I use it all the time (3-4 times per week, anyways) and am very happy with it. Contrary to popular believe by blu-bois, not everything worth watching is on Blu-Ray, nor does everything worth watching need to be.

I watch the Blu-Ray if it's available (especially if it's a heavy surround-sound of sfx movie), but I also have about 75 movies in my instant queue that aren't on Blu-Ray. I'm perfectly happy having access to them at anytime without having to wait for it to be "available" and then the shipping turnaround....or having to spend $20-$35 for the disc.

1) This is an open thread.
2) At least some, including myself are subscribers...we pay for it good or bad.
3) We want something better than sub dvd viewing experience...from NF.

Thanks in advance for respecting diverse first hand users comments.

Terrible might be a bit of an overstatement, but I would agree the current Netflix Watch Instantly encoding quality is rather disappointing when viewed on a larger TV screen.

But I don't think we need full HD and lossless audio to be useful. Just getting the encoding quality up near standard DVD level would be a huge improvement for viewing on full size TV screens. (I use the Roku box).

Given the studio licensing limitations on HD streaming, I would rather see the majority of the Netflix streaming library get upgraded to DVD quality encodes. On my 50" HD plasma, the difference between Netflix streams vs Netflix mailed DVDs is far more noticeable than the difference between DVD and Blu-Ray, for example.

There is a vast difference between quality of individual streaming encodes. There is work being done to standardize the digital masters, which should help in the process. And keep in mind that many of these encodes were done for other purposes and then provided to Netflix.

If you look at HD streams from places like CBS.com (http://www.cbs.com/hd/) you can see how the quality is improving on newer content.

One of the greatest things about download/streaming is it allows for rapid improvements of quality. I have very little doubt that download/streaming will break the 1080p barrier (for studio/broadcast content) long before any physical format will.

1) This is an open thread.
2) At least some, including myself are subscribers...we pay for it good or bad.
3) We want something better than sub dvd viewing experience...from NF.

Thanks in advance for respecting diverse first hand users comments.

understood, but my response was to the specific user/comment which I quoted: "I hope noone uses this"

understood, but my response was to the specific user/comment which I quoted: "I hope noone uses this"

I wouldn't worry too much about the naysayers. They are tilting at windmills.

Streaming/downloading is growing in usage (both in number of users and number of hours of use) and improving in quality. Broadband continues to grow in speed and availability, and there are corporations and government agencies taking active steps to improve availability and infrastructure. ISPs have been smacked down for anti-competitive and anti-consumer action, and the growing popularity of streaming/downloading will only make it more difficult for them to try and protect their video distribution monololies.

There is a great deal of content available now, including a growing number of HD titles. The technology is improving at a rapid pace and there are more homes then ever before with devices that can stream content directly to their primary viewing device.

There are a few ill informed individuals who seem terrified about the growing number of options for consumers. Who knows why, but their voice really cannot change any of the facts or the momentum. Just enjoy the content that is out there now and know that it will only improve in availability and quality. It is a good time to be an enthusiast.

I really do not know why Netflix has invested so much money in providing subpar audio and video. The silverlight player was demo'ed years ago with HD streaming video. 5.1 sound doesn't take up that much space.

Netflix right now has the market position to dominate the video streaming market. They should stop making poor decisions on quality or someone else will eventually take over their business.

Woe is Netflix.... oh wait. Nevermind. They are experiencing record growth and profitability and their execs specifically cite streaming as the value-add driving their growth.

The quality will get worked out as buidling quality streaming encodes becomes part of the normal process. Right now it sounds like much of the stuff they are getting is repurposed from other sources.

Netflix right now has the market position to dominate the video streaming market. They should stop making poor decisions on quality or someone else will eventually take over their business.I rather think the market will be won on cost and content not quality. Especially when you consider those only interested in quality won't use any of the services anyway. Even VUDU's HDX is considered worthless to most of that segment.

Eat up folks, I am a Netflix stockholder :)

Just curious, when Netflix starts charging for streaming what will be the maximum you will be willing to pay per month for streaming only? If you subscribe to one of the disc rental plans what will be the maximum you will be willing to pay per month for adding streaming to your rental plan.

Eat up folks, I am a Netflix stockholder :)

Just curious, when Netflix starts charging for streaming what will be the maximum you will be willing to pay per month for streaming only? If you subscribe to one of the disc rental plans what will be the maximum you will be willing to pay per month for adding streaming to your rental plan.

At todays quality from NF:

$0

and

$0

Get it to 720p and I might use it because it's an added value, otherwise, discs by mail are ok by me.

I wouldn't cancel my disc-by-mail plan (because of Blu-Ray), but I'd probably pay $5 - $10/month for the streaming....assuming it was unlimited. I might bump my disc plan down to 2 at a time though from my present 3-at-a-time plan.

I wouldn't pay anything if it was a PPV model.

Eat up folks, I am a Netflix stockholder :)

Just curious, when Netflix starts charging for streaming what will be the maximum you will be willing to pay per month for streaming only? If you subscribe to one of the disc rental plans what will be the maximum you will be willing to pay per month for adding streaming to your rental plan.

I don't think that is going to happen for a while.

Streaming is a strategic tool that has fueled growth for Netflix. Quite simply, it pays for itself in increased subscribers and lower churn. Add in Netflix not having to turn over 1/3 of their revenue to the post office, and the long term strategy advantage of streaming becomes even more clear.

They have also noted that they do not want to enter either the PPV or advertising based market. They seem content to count the money from new subscribers thanks to streaming and use Blu-ray as a way to charge premium prices from their customer base.

I just subscribed to netflix. 2 dvds and unlimited streaming. I have watched a few instant streaming movies so far. I was quite impressed by the video quality. It was in hd-looked good to my eyes. Just wish they would upgrade to DD/DD+. Hopefully real soon they will have the upgraded audio.

I just subscribed to netflix. 2 dvds and unlimited streaming. I have watched a few instant streaming movies so far. I was quite impressed by the video quality. It was in hd-looked good to my eyes. Just wish they would upgrade to DD/DD+. Hopefully real soon they will have the upgraded audio.

Yeah, I think the HD stuff looks pretty good. Not Blu-Ray quality of course, but I think it looks as good as broadcast HD, for the most part (viewed on my 50" plasma).

Sound is lacking, which is why I still stick with Blu-Ray for surround-sound heavy stuff.

On a side note, just watched "Traitor" which isn't HD and it actually looks pretty good. Thus I think the newer encodes look pretty decent. Too bad the majority of stuff is old encodes that I believe they've gleaned from other services (like the StarzPlay stuff that generally looks soft).

I wouldn't cancel my disc-by-mail plan (because of Blu-Ray), but I'd probably pay $5 - $10/month for the streaming....assuming it was unlimited. I might bump my disc plan down to 2 at a time though from my present 3-at-a-time plan.

I wouldn't pay anything if it was a PPV model.


If that's all you're willing to pay for streaming, the release window for newer movie titles will never improve.

My main gripe with Netflix streaming service are the poor selection of movie titles and its average video quality.

If that's all you're willing to pay for streaming, the release window for newer movie titles will never improve.

My main gripe with Netflix streaming service are the poor selection of movie titles and its average video quality.

What do you mean by average video quality. It checks your internet speed, it rated mine at HD-I would compare video quality with HD DirectTV/Dish network HD. No where near Blu-Ray quality. Could it be some of your internet connection speed causing the video "hiccups" you are seeing. I use Comcast high speed and no complaints on video. Wish they offered DD/DD+.

If that's all you're willing to pay for streaming, the release window for newer movie titles will never improve.

My main gripe with Netflix streaming service are the poor selection of movie titles and its average video quality.

Right now the revenue that Netflix gets from the customer gets split like this:

1/3 to the Studios
1/3 to Netflix
1/3 to the Postal Service


With streaming the model becomes:

1/3 to Netflix
2/3 to the Studios


Which do you think the studios would prefer in the long term?

As a value added free service, Watch Instantly can't be beat, regardless of the sub-DVD quality of most non-HD titles, lack of 5.1, and lack of newer major studio titles. I've really enjoyed "discovering" many of the straight-to-video, independent, documentary, and foreign films that seem to make up the bulk of the more recent content offered. I also think it's great that I don't ever have to use a spot in my disc queue to catch up on 4 seasons of The Office, in HD. I finally got a Roku last week, which makes using this service even more convenient and will definitely reduce the number of discs I have mailed. My only wish is to see more HD titles, which I'm sure will grow in the coming months. However, as a standalone service, I certainly wouldn't want to pay more than $7/mo. for Watch Instantly given what I can get for $11/mo. by subbing to a premium channel like HBO.

1/3 to the Postal ServiceI don't know their related costs but keep in mind delivery isn't free for streaming. There is quite a large overhead to expense.

While the quality and selection of watch it now titles is generally pretty bad, as a (currently at least) bonus to an existing mail subscription I have little to complain about*.

It's handy for those times when there's nothing else to watch, or when I fancy watching something on the laptop when away from the TV.

I'm sure I'd feel differently if I had to actually pay for it however.


*Other than the recent "optional" switch to the Silverlight player that you can't opt back out of that is.

I don't know their related costs but keep in mind delivery isn't free for streaming. There is quite a large overhead to expense.

The scenario of the revenue split (in mail based versus streaming based) comes directly from Netflix.

I understand there are costs associated with streaming, but Netflix has tended to charecterize it as significantly less than with using the postal service.

If that's all you're willing to pay for streaming, the release window for newer movie titles will never improve.

My main gripe with Netflix streaming service are the poor selection of movie titles and its average video quality.

I should've clarified my willingness to pay $5-$10 for streaming. That would be on top of my disc-rental plan (similar to how it's $5 extra for Blu-Ray on my plan).

Even though I'd never use a streaming only plan AS NETFLIX STANDS RIGHT NOW, I would think $20/month would be fair. Right now, I have 80 movies in my INSTANT queue, and more are being added all the time.

I have said before, that if I could get HD with DD+ and D&D, I'd pay $45-$50 a month for unlimited streaming. I'd already have Vudu if they offered a plan like that, but will NOT pay for a PPV model. Too expensive.

So in a nutshell, this is what I would pay for streaming:
1) $5-$10 on top of my discs-by-mail
2) $20 for unlimited streaming-only (as Netflix's offering stands right now)
3) $45-$50 for unlimited streaming of HD/DD/D&D (think VUDU or AppleTV selection/quality).
4) $0 for PPV model, unless it was in the neighborhood of $3 to $4/view for the HD/DD/D&D stuff.

My problem with Vudu is the standalone player I have to buy (I use XBOX for Netflix right now), combined with the IMO expensive PPV model, combined with that I'm not convinced they'll be around a year from now.

I started my Netflix 2 week free trial on Monday. I got my first blu-ray on Wednesday, but didn't have a player until Thursday. I watched the dvd on Thursday and returned it, Netflix got it on Friday and sent me my second blu-ray which I got today (Saturday). Of course living in the same city where the videos are returned and sent out helps the turnaround time.

Streaming videos--I love em and have zero problem with the picture quality which is 480p for me. I have already watched lots of movies and tv series episodes, so between the blu-ray dvds and the streaming videos this is the best $11 bucks I have spent other than the $99 I spent for the Roku player. Oh, and I also watched an Amazon video on demand movie tonight that also looked just fine to me.

I have to remember that this is AVS where there are those here who are anally retentive, fault finding perfectionists and are never entirely satisfied with anything. It must be a real treat to have to live with those kinds of people.

I have to remember that this is AVS where there are those here who are anally retentive, fault finding perfectionists and are never entirely satisfied with anything. It must be a real treat to have to live with those kinds of people.

Most people aren't that bad. I think most people here are like me and use (or are at least interested in) a combination of things: Blu-Ray, streaming, Cable/Satellite, etc.

But there are the vocal few who are "Blu-Ray or nothing" that will immediately put down anything less, but they quickly get added to my ignore list, since I am interested in a variety of content sources and am educated enough that I don't need to be repeatedly told of the benefits of Blu-Ray over everything else under the sun.

Most people aren't that bad. I think most people here are like me and use (or are at least interested in) a combination of things: Blu-Ray, streaming, Cable/Satellite, etc.

But there are the vocal few who are "Blu-Ray or nothing" that will immediately put down anything less, but they quickly get added to my ignore list, since I am interested in a variety of content sources and am educated enough that I don't need to be repeatedly told of the benefits of Blu-Ray over everything else under the sun.

True, most probably aren't that bad, but there is a very vocal and snobbish minority who turn their noses up at anything less than perfect. Right now I am watching Meercat Manor on Netflix streaming and although it is only 480p it looks good on my 50" plasma and as with anything I watch it is for the content and not simply the PQ. In fact, no matter how great or perfect a picture may be if the content does not interest me I simply won't watch it.

Yes Blu-Ray does look good, but I started off as a young duffer watching the radio and then a series of what would now be considered small b&w tvs until I first saw color in the early 60s. Now b&w to color, that was a big difference.

Really you spent money on a 50" plasma tv to be happy with 480p?

Really you spent money on a 50" plasma tv to be happy with 480p?


That's right. I primarily watch tv for content and not exclusively PQ. I am not a HD snob. I spent many years watching a b&w tv (with tinfoil on the rabbit ears) as well was one with a SD picture and so I'm not going to stick up my nose at a program I want to watch just because it is only 480p. I enjoy Blu-Ray and HD when it is on and marvel at how good it looks, but I am watching a Netflix streaming 480p picture now and I am happy with how it looks since it is something I want to watch.


I spent less on this 50" plasma than I did on a widescreen 30" crt Samsung just 6 years ago and I enjoy watching Blu-Ray and HD on it. I also have a front projector with which I watch movies on a 7' screen at 480p and it looks fine to me and everyone who has seen it likes it too. I'm happy. There will always be something better and something worse.

Let's face it, someday somebody will say, "How can you be satisfied with 1080p? Ewwwww!"

If I spent thousands of dollars for a high def display then I want to view the best quality I can on that display.

If I spent thousands of dollars for a high def display then I want to view the best quality I can on that display.

Again, I watch tv for content and simply PQ. I have read of many who apparently will watch anything, as long as it is HD, regardless of whether or not they like the content. There is plenty I can watch in HD so I can make do with only 480p when I have to.

If I spent thousands of dollars for a high def display then I want to view the best quality I can on that display.

No offense, but you're one of the "Blu-Ray or nothing" people I spoke about before, and you should really just stick to the Blu-Ray forums then, since nothing else is as good, and your posts here in the download/streaming section are just redundant (we already know the streaming options aren't as good as Blu-Ray, but choose the selection/convenience anyways). You are not telling us anything we don't know.

Cancel your satellite/cable, and only watch only what's on Blu-Ray (granted, that's roughly 0.5% of content that is out there, but hey...at least the quality is good).

No offense, but you're one of the "Blu-Ray or nothing" people I spoke about before, and you should really just stick to the Blu-Ray forums then, since nothing else is as good, and your posts here in the download/streaming section are just redundant (we already know the streaming options aren't as good as Blu-Ray, but choose the selection/convenience anyways). You are not telling us anything we don't know.

Cancel your satellite/cable, and only watch only what's on Blu-Ray (granted, that's roughly 0.5% of content that is out there, but hey...at least the quality is good).

Who died and gave you the authority to tell people where they should or shouldn't post?

If you and some other can go in the other section and talk about the subjet being discuss there then he and other like him can come here and do the same. This isn't your own private sandbox.

That being said, Yes content IS king but quality does matter. If I have the choice, I'll go with the best one available to me. I won't accept a subpar encode just because I feel like a rebel and I want to "stick it to the man".

Streaming isn't going away, at least in the US, but it's not a reason to accept bitstarved encodes as if it's the second comming.

Who died and gave you the authority to tell people where they should or shouldn't post?

I am glad I have a fine appreciation of irony.

:D

No offense, but you're one of the "Blu-Ray or nothing" people I spoke about before, and you should really just stick to the Blu-Ray forums then, since nothing else is as good, and your posts here in the download/streaming section are just redundant (we already know the streaming options aren't as good as Blu-Ray, but choose the selection/convenience anyways). You are not telling us anything we don't know.

Cancel your satellite/cable, and only watch only what's on Blu-Ray (granted, that's roughly 0.5% of content that is out there, but hey...at least the quality is good).

You might want to explore the IGNORE option when one of the blue-boys gets under your skin. What you can't see won't bother you! ;)

Who died and gave you the authority to tell people where they should or shouldn't post?

If you and some other can go in the other section and talk about the subjet being discuss there then he and other like him can come here and do the same. This isn't your own private sandbox.

That being said, Yes content IS king but quality does matter. If I have the choice, I'll go with the best one available to me. I won't accept a subpar encode just because I feel like a rebel and I want to "stick it to the man".

Streaming isn't going away, at least in the US, but it's not a reason to accept bitstarved encodes as if it's the second comming.

Actually, my pappy died and his dying breath was granting me the authority, but thanks for opening up old wounds :(;)

I didn't mean any offense and he can post here if he wants to obviously....just his only contribution over here has been ripping on us for choosing to watch anything less than Blu-Ray. If you're only interested in Blu-Ray and look down on everything else, it would make sense to not troll (maybe that's too strong of a word but it will do) in this section.

If you read my post history, I think you'll see I do the same thing as you....I watch Blu-Ray if available (moreso if it's something surround-sound or action-heavy), but that doesn't mean I ignore all other options that are available to me and can live with "less than Blu-Ray" for a lot of stuff. For example, you can't even watch Mega Shark Vs. Giant Octopus (http://www.avsforum.com/avs-vb/showthread.php?t=1150153) on Blu-Ray, and if you're going to pass on that just because it's not in 1080p and lossless sound...well, I just don't know what to say.
http://roberthood.net/blog/wp-content/uploads/2009/05/msvsgo-01-small.jpg



Ok...back to your regularly scheduled posting. Sorry if I offended you guys.