Netflix Should Stick with it’s Two-Tiered Company

A theatre-esque setup is more appealing to some than a 13-inch laptop

Reading Troy Ochipinti’s blog, I was in agreement with his post “Netflix Jumps the Gun” which concerned Netflix’s change in price layout due to the separation of it’s streaming and DVD rentals.

I largely agree with what Troy has stated. Streaming movies is obviously, as he puts it, “the way of the future”. It is rapidly increasing in popularity, and there is no doubt that it will soon become the dominant way to watch films.

However, I would contend that there is a future for a greatly downsized DVD delivery industry. It needs to be taken into account that we are leaving an age where virtually every household has rented DVD’s. It’s true that a massive amount of the DVD market has been eaten up by streaming videos, but I believe that after the dust settles there may be a significant, albeit smaller, demand for DVDs. They can be easily played off of TV’s, which are bigger and better for watching movies on than computers. Netflix may still be able to capitalize on being the dominant company in a much smaller market.

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