Though it has morphed from a primarily DVD-focused rental service to a streaming rental provider, “rental” remains the operative word in Netflix’s business model.
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According to industry insiders consulted by CNET, Netflix has refused studio offers of better content acquisition terms in exchange for an agreement to sell movies.
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According to CNET, Netflix managers have declined offers from their studio counterparts that would place a “buy” button in Netflix’s user interface, even though it means Netflix pays higher licensing fees in the absence of such a deal.
Josh Martin, a video analyst for research group Strategy Analytics, thinks Netflix is smart to stick with what it’s best known for: renting. Says Martin:
“We always have had these silo operations and this one appears to be working . . . So why would you introduce unnecessary confusion into the equation?”
Should a “buy” button to pop up on Netflix some day, Insiders, would you take the plunge? Or is Netflix doing the right thing by ignoring studio overtures that would turn it into a movie seller?
(via CNET)
Netflix should stay rental and streaming.
What’s wrong with selling vs. renting? It’s not that different. They’d probably market it out to a 3rd company anyway.
The day’s of buying DVD’s is gone. More than likely a larger portion of people who use Netflix are more interested in watching different movies meaning rental than watching a movie over and over. Disney movies, or kids movies are the only sector that is still driving the purchase dvd market I would guess.
I don’t see anything wrong with a buy button they had it in the past and took it way when netflix first launched. I got good deals on some of my dvds I bought used when netflix started.
Netflix is awesome stay the way you are. Why fix it if it’s not broken. The day’s of buying DVD’s is gone.
The studios would have to stop selling stripped-down rental edition discs, first. Who’d want to buy discs with the bonus features removed, and some discs without even a scene menu?
Yeah, I’m going to echo miker2 as well as the others… a buy button seems like a waste if the item for sale is the “rental version” dvd. I picked up Megamind from Blockbuster Express yesterday (as Netflix didn’t have enough copies?) and was pleasantly surprised to see it had bonus features on it. Nothing great, but still a nice change of pace from stripped down discs. Also, I’m much more oriented to streaming now and I’ll only buy a disc if I’m REALLY interested in the film. Most of the stuff out there these days sadly doesn’t interest me that much. Although I’ll add that Megamind would be worth buying… a good solid kid’s flick with enough to keep this “old dude” interested as well!