What Netflix Thinks it's Future is

Published Friday, June 4, 2010 3:27 PM

Netflix has released a 40-slide slideshow that talks about where they see themselves in the future. The slideshow is interesting, to say the least, and makes a lot of sense when you think about their business decisions they have made recently.

Probably the most interesting topic discussed is about the future of DVD rentals. According to their graph they predict that renting DVDs will all but be replaced by online streaming by 2030. I think that's a pretty good time table considering how many ways there are to stream a movie even now.

Netflix is not going to allow themselves to become obsolete so they are changing the game by moving from DVD rentals by mail to movie streaming via the internet. It's a pretty smart move, if you ask me, and makes a lot of sense when you look at the deals they are making with the big movie studios.

Netflix has made deals with Warrner Bros., Fox, and Universal, to delay their new releases by 28 days. Why? Because Netflix is thinking about the future. They don't want to be in the DVD rental business they want to be in the online streaming business. They want to have the largest back catalog of movies and TV shows as possible.  

I have to say I'm impressed. I was sort of upset about the deals, but now I understand why they did it and I think it was a smart move. Netflix doesn't really want to be the end all video streaming service, they want to be a ubiquitous and cheap service that will simply be apart of how you watch movies and TV shows.

Netflix has some hurtles to over come however. They have to think about piracy, which is always a pain for companies delivering digital content. Netflix has already put money into piracy protection we will have to see if it's good enough to keep people from stealing their content. They also have to be on the look out for Hulu, which has already announced a paid service giving people access to back episodes from many of the popular networks. The question is, when the time comes to choose a video streaming service which one will people go with? Hulu or Netflix? Only time will tell, but I will probably stick with Netflix. I have been a customer of theirs for several years and have enjoyed it immensely. 
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