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Comment by smacktoward | Hacker News Reader

Netflix's USP isn't access to movies anymore. It's access to exclusive-to-Netflix content like House of Cards, Orange is the New Black, etc.

The fact that you get some movies along with that original content is just a legacy of their old strategy, which means that (1) their movie library is never going to get much better than it is now, and (2) things like feature film release windows are now more or less irrelevant to Netflix's market appeal, since they have full control over when their original content rolls out.

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That's sort of how I look at it. To me, Netflix (streaming) isn't a replacement for Blockbuster or PPV/VOD like their DVD-by-mail service. It's a cheap replacement for basic cable.

For under $10/mo I get the mostly the same thing as I get from all those USA/TBS/TNT sorts of channels: something to skim through and usually find something to watch with the occasional original show that I specifically seek out. With basic cable, I also can't count on a large selection of recent release movies or being able to find a specific movie/show to watch at any given time. The main difference is that basic cable costs more than the $8 or $9 per month that I pay for Netflix streaming.

"The fact that you get some movies along with that original content is just a legacy of their old strategy, which means that (1) their movie library is never going to get much better than it is now, and (2) things like feature film release windows are now more or less irrelevant to Netflix's market appeal, since they have full control over when their original content rolls out."

I like how aggressive you are with their strategy but frankly the fact that the multibillion multiyear disney deal hasn't even begun yet really pushes against your narrative.

If you were right, the Disney deal would have never gone down.

There's not enough original/exclusive content yet though. If their library were to disappear tomorrow, so would huge swaths of their subscribers. The library provides enough necessary value to warrant the membership, until more exclusive/original content becomes available.

I also wouldn't count the "old strategy" dead just yet. As torrenting becomes more popular, you may see Netflix get earlier deals and releases from those that would rather some money than no money.

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