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To: Irenic

I think the 16.99 was/is our limit, we will only step it back from there, until it’s no longer ‘worth it’ to us.


Cable companies faced the same dilemma back in the day. Their solution: allow advertising. Unfortunatly, they had no way to filter out advertising for coustomers that didn’t want it.

Netflix does. They could have a “standard” price that includes advertising during the shows, and a “premium” price that delivers the shows without advertising.

People like you, that won’t go beyond a certain price point, could choose the standard packgage and live with the advertising.

People that didn’t want the ads could pay a little more each month to eliminate them.

Anyway, I expect some competition to Netflix to emerge eventually. At the moment they have the market to themselves, but you know that can’t last forever. Hulu seems the closest thing, but they seem to target a different audience.

The barriers to competiton on the internet are lower than they are for cable. Competition will eventually come and push prices down.


46 posted on 12/14/2010 7:59:56 AM PST by Brookhaven (Moderates = non-thinkers)
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To: Brookhaven

Exactly: advertising.

Cable companies could drive prices higher for Netflix and... lose their advertisers to Netflix LOL!


66 posted on 12/14/2010 9:45:58 AM PST by mrsmith
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