Originally Posted by 42Plasmaman
Really, let me know when I can watch a new popular release on release day on Netflix. VuDu and others are trying but it seems people still opt for disks.
People opt for discs over Vudu/VOD (in the majority of cases) because Vudu is still priced high ($3.99 for SD and on up through $5.99 for HDX). A lot higher than disc rental prices. Netflix has gotten new releases day of (or within a few weeks), but it's rare and not usually the blockbusters. Like Kevin Smith's Red State was just released day-of, but of course that wasn't really a blockbuster.
Netflix had their niche but Amazon and others are attempting to provide the same model plus new popular releases for a premium.
I believe Amazon has the most enticing package if they can get a queue setup like Netflix.
Cheap catalog access and new titles if you want to pay for them on a single interface/service.
Blockbuster may be not to far behind since they already offer "ala carte" new titles for single viewings. They just need to add more catalog and charge a base subscription price.
I agree that the combo buffet + new releases at a premium is enticing. However, most people currently enjoying streaming have those options already (for example, I can stream unlimited from Netflix or Amazon or Hulu+ and rent a new release at a premium from Vudu, PSN, Zune, Amazon, FiOS, etc). I'd be hard pressed to find a streaming device that didn't offer a similar plethora of options. Yeah, it's not from the same all-in-one provider, but I'm not sure how much that matters to your average person. Perhaps more than I think based on the Qwikster fiasco where people were so upset about having to pay 41 bills a month instead of 40. (I personally wasn't). The "nice" thing about the combo is being able to maintain queues in one place.
As you point out, those others have a ways to go to catch up if they want to take over the Netflix crown. They can't continue to offer a subset of the Netflix titles, at (roughly) the same price, on fewer devices, and hope to catch up. But it's nice to see people trying, as I really don't want the buffet model to die, and I'm afraid if the Netflix model dies, that dies with it.
To me, it seems Netflix did the bait and switch and got a lot if subscribers using their low price scheme and hoped they would stay on board with a 60% price increase and splitting services but they gambled and failed.
I hate to point this out because you're so seemingly jumping for joy that Netflix lost 800,000 subscribers in one quarter, but you do know that's out of ~25 million, right? That's about 3% and just slightly higher than they had predicted (depending on which news article you read). And a good bit of remaining people are paying the higher prices. I know the kneejerk reactions of the media and stock market kindof made that out to be a big deal, but it's not like they lost 10, 20, 30 or 40%. They've had quarters where they've gained more than twice as many subscribers as they lost. Not saying that will continue to happen, but losses in a single quarter (that can be directly attributed to hopefully one-time changes), is hardly a trend.
I'm just not convinced it's as big of a deal as others seem to think. I still predict they'll gain back most of those subscriber numbers in Q4, barring another PR disaster. Now, if they continue losing subscribers over the next couple of quarters and it becomes an ongoing trend, then it's a bigger problem/trend. As it is right now, it's too early to say what the long-term effects and the loss is simply an expected result.
I'm just saying a bit of reality check is in order here.