Originally Posted by Apostate
The problem with Don Landis' position is that he believes we, the consumers, should cater to Disney's business strategy, which I find absolutely baffling. The entertainment industry makes its money by catering to the consumers, not the other way around. If Don believes that Disney's strategy is correct... well, I hope Don gets out of his position in time because Disney's stance will eventually come around and bite them in their ass sooner or later.
I completely agree that Disney's long term strategy is to get out of physical media business all together. I believe what Disney is doing is shaping consumers' expectations and buying habits. Disney is actively trying to steer consumers' to online streaming which means fatter profit margin and more control for them. As others have said it's all about greed. As consumers, the only and most powerful weapon we have is our wallet. For 3D programs, I will only buy blu rays. If Disney refuses to provide for my need then they simply won't get my money.
For casual viewing, I love the convenience of streaming but for ownership, I want physical media. To me, physical media such as blu ray gives me better A/V quality and control. The problem with owning movies in the cloud is that there is no guarantee that what you paid for is what you end up with; the ultimate control is with whichever company that holds the movies for you. The company can take away your movies' features to fit their situation. Even worse, you can end up losing your movies. You are held hostage to the company's vagaries and you have no recourse. With the movies in the cloud, the fact that the movies you paid for and own are not really your own bothers the heck out of me. It's downright un-American.
1. Not my position entirely. My position is you don't have to accept the business motive, but you should understand it. Disney, like most SUCCESSFUL public businesses work for the benefit of it's owners, not for an altruistic benefit of the world's population. Those who understand my position understand that I do not have the same rules as a user of products as I do as an investor. As I user, I want to have the products I want and I want them at the lowest price and most convenient way. As an investor, I want the company to make products that the people will buy and generate the company the most profit. I may love Disney products forever, but as an investor, when they cease to make profits and grow fast enough, I will indeed sell, take my money and move on to the next successful business. Trust me, I learned the hard way, not to ride a company all the way up and right back down, losing it all. Today, I'm always taking a little off the table and spending it ( a little to the tax man too) so when the day comes, I can even sell a little at a loss and still know I had a fun ride along the way. The entertainment industry makes it's money and is a success by UNDERSTANDING the consumer spending habits, not by giving him everything he wants when he wants, where he wants it, it for a price he wants to pay.
2. By present trends, media companies see where we are heading in the distribution business, hard media distribution day's are numbered. There is a better way. The trick is timing the transition. I agree with you that you have a choice not to buy what Disney is selling, at least until you change your mind. Disney, on the other hand is they remain true to a successful business strategy ( you call greed) will adjust it's business along the way
that works to maximize profits. Michael Eisner said, " We will raise our gate price for the parks 10% per year until the business falls off 10%". It was an oversimplification of a successful business model.
3. There will come a day when streaming meets your high standards. Fact is streaming has no permanent upside for delivery quality. The limit we have today is just temporary. I agree with you that Owning a COPY of a moviein the cloud is with greater risk of loss of control than the hard media but both are subject to loss unexpectedly. The best defense against this is redundancy. That's why I have two copies of Frozen 3D. One on Blu Ray for permanency subject to physical damage and a playback hardware failure. And on the cloud, because it was available immediately, and is quicker access from many locations. Un-American???? What is that? Maybe by your definition, but the only thing I find truly "American" is our constitutionally guaranteed freedoms that supposedly guarantees our freedom and even there many "Americans" work hard every day to take those freedoms away. There is no constitutional guarantee that you can have everything you want, when you want it, and where you want it at the expense of others including businesses. You are guaranteed the freedom to choose not to do business with them, that is all. And even in some areas of commerce those rights have been taken away by our "American" government. Nobody is holding you hostage, except yourself and your own limitations you place on yourself.
Can DVHS videos be recycled?
Maybe but here, unless the item has a recycle logo imprinted on it, our state recycling laws won't allow it. I tried once putting a carton of VHS blank tape out as it has no resale value and the recycle pickup people refused to take it because it doesn't have the authorization symbol. Sony has their internal recycling program where they grind up surplus CD and DVD stock and make cases for new products from that. The HDR TD30 3D camcorder and my new Region free modified 3D BD player is made from recycled CD's.
What I fret is Netflix,,,
As I said, don't worry about them only doing
PPV That business model needs to change drastically to make it popular enough for Netflix to jump in 100% unless Reed goes on a suicide mission.
Netflix is spending money currently on increasing it's subscribers numbers world wide.
Secondly, it is spending on doing original programming to augment licensed content. Both of these have been shown to work for the success of the business.
Netflix could triple it's subscription price and still be the best deal on the block. As an investor I would favor that as it would fatten the bank and put the company in a price to earnings multiple similar to Apple and Microsoft. BUT, the mainstream media would berate them and users would cut off their nose to spite there face and the plan would flop. Consumers trip over dollars to pick up pennies all the time. Netflix already made the mistakes of raising prices to match their nearest competitor before and won't do that again. They will remain a fantastic deal, way under the competition. Kind of like Red Box does.