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Netflix Streams Decreasing

Netflix's dumbed-down algorithms

Netflix's big problem, it seems to me, is that it can't afford the content that its subscribers most want to watch. It could try to buy streaming rights to every major Hollywood blockbuster in history — but doing so would cost hundreds of billions of dollars, and could never be recouped with $7.99 monthly fees. What's more, the studios can watch the Netflix share price as easily as anybody else, and when they see it ending 2013 at $360 a share, valuing the company at well over $20 billion, that's their sign to start raising rates sharply during the next round of negotiations. Which in turn helps explain why Netflix is losing so many great movies.

John Gruber also links to Can I Stream.It?

One Response to "Netflix Streams Decreasing"

  1. I read this recently and found it to be pretty compelling. I had thought of re-upping my Netflix streaming subscription, but I think if I do anything with Netflix I would be better served by going with the discs. I know Netflix wants to get rid of discs, but without a good streaming selection, they will need to keep the discs.