Posted on 10/20/2005 2:57:11 PM PDT by Quick1
Internet DVD renter Netflix has put its plans for a movie download service on hold after failing to agree terms with Hollywood.
In a conference discussing its third quarter numbers Netflix CEO Reed Hastings said the company would continue working on the infrastructure for the planned service, Reuters reports.
However, due to problems obtaining license agreements with Hollywood studios, the test phase of the service has not been postponed. Hastings said the company would hit the play button on its plans “when the content climate beings to thaw.”
The studios' reluctance to let Netflix squirt their movies down the wire is no great surprise. Because of its paranoia about unregulated distribution of its content Hollywood is currently about as keen on the internet as it is on thoughtful, foreign language dramas featuring real, unaugmented people. Perhaps Netflix would have more success if it courted Bollywood instead of Hollywood.
For the third quarter, Netflix reported revenues of $174.3m, 23 per cent up on the previous year. Net income was $6.9m, well down on the previous year's $18.9m.®
what is keeping people from renting from netflix and making a copy?
Why, nothing at all... [snicker]
hehehe don't tell now you didn't hear it from me
I never seen orginaztions shoot themselves in the foot more often than the MPAA and RIAA.
So, people will just continue to download the movies for free, what is the big deal? The MPAA and RIAA are both dinsosaur business models and are absolutly doomed.
They way they behave makes me enjoy watching the squirm as the powerful monopoly is seized right out from under them by kids with computers. Bwahahahahaha!
With movies, most of the time it's not worth the effort.
About the same thing keeping someone from renting a movie from Blockbuster and making a copy.
I'm with you guys. If the mpaa insists I drive to the video store to grab their movies, I'll just keep downloading them free. The president asked us to conserve energy. My computer uses a lot less gasoline than my car.
depends on the movie I suppose
Why did Netflix's net income decline dramatically despite a 23% growth in revenues?
Because they spent more? :)
Seriously, I don't really know.
Dunno any facts on net income decline, only have anecdotal info. I'm a heavy user. I've gotten more than a few broken DVDs, their availability/selection has declined and return processing slowed.
I'm, guessing, perhaps inventory problems, fulfillment problems, and maybe with their subscription model, the amount of product inventory cost and service/delivery cost has increased.
I hope the movie industry totally chokes and fails.
And of course the RIAA has decided it's time to kill that goose by demanding that iTunes raise it's song fees and demanding that the industry impose an "iPod tax" on every new mp3 player sold. Typically RIAA stupidity and greed.
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