Understanding The Movie Rentals Trade for a Changed World
In Netflix’s war with Blockbuster, Netflix appeared to be better in touch with today’s movie rentals business scene than the latter and fittingly, remained a strong market presence while Blockbuster had to file for bankruptcy protection. Netflix is already struggling with its next battle in the war for movie rentals supremacy, against ompetitors like Google, Amazon and Apple. Movie rentals are no longer just about sending DVDs out. They are about selling streaming movies, television shows and sporting action online. Netflix won its last battle because logistically, it had the upper hand in the sending and receiving of DVDs. Selling movies online won’t be about logistics, because everyone has the ability to easily stream high-bandwidth content. The winner of the next battle will be the company that can negotiate the best with Hollywood for the rights to the movies they wish to sell.
Of course, logistical barriers exist with streaming too. The winner in any battle for streaming market share will be the player that is accepted across the most devices. To be universally accepted, you have to have your service work with more than just computers and internet-enabled television sets. You have to get into every kind of set top box and gaming device out there. And Netflix has worked hard to be the one that does just that. You can now receive Netflix streams videos on 100 devices and more – XBoxes, Roku, Apple TV, you name it. The only problem is, Netflix hasn’t been able to convince Hollywood that allowing every one of its DVD titles to be streamed is a good idea. Right now, only about 20% of Netflix’s DVD catalog is available online. Netflix is actually losing this battle. There are movie rentals and TV show rentals available on other services like Amazon and Hulu Plus that are newer than what you can get on Netflix. They even have competition in YouTube now.
Apple TV on the other hand has its own wars to win. Movies are watchable today on cell phones, Blu-Ray disc players and a dizzying variety of other devices. The new $99 Apple TV device can stream movies from iTunes, Netflix and YouTube. TV episodes go for $.99, and new movies go for $4.99. They are just hoping that people will be encouraged by the ability Apple TV gives them to get all their stuff in one place just as they did with iTunes a decade ago. People are always complaining about how the cable companies force them to buy entire packages of channels just so that they can watch one or two that they like. Apple TVs episode-selling brings down the size of your commitment to the single episode. That has to be a winner for people who hate paying for stuff they don’t use.