Netflix: only 35 of IMDB top 250 available to stream (2018)
streamingobserver.com
streamingobserver.com
I would gladly pay 3, even 4 times more for a Netflix that would have everything.
Piracy still delivers a better product too unless you're using edge or a netflix apps.
DRM continues to harm paying customers.
Now the price is going to $12-13, and the selection is abysmal. It's heavily geared towards "original content" which are mostly series of 10+ episodes I have not the time to commit to.
Still not bad for the occasional documentary and comedy special, but this is a bait-and-switch. They don't have too many more pushes before I unsubscribe.
Second time I've shilled for them on here recently, but I'm in no way affiliated. Just discovered them a couple months ago and really happy with the service. Especially for free.
Ironically, Kanopy is the only film streaming service good enough to pay for, and you can't pay for it.
Negative $380 million in cash flow in the quarter (vs negative $287m last year), persistently worsening quarter after quarter, year after year. I can't decide who has the worse business model, Netflix or Uber. Their entire business hinges on the ability to hit US consumers with ever higher fees for ever less content.
Either $14 or $15 is where I unsubscribe permanently from Netflix, unless they want to give me a much larger traditional movie library to go with the perma hikes.
Thats sort of a huge advantage for one of the long time content producers. say DIS spends 10 bil on original content and netflix matches, DIS has decades of previous content already built up.
Disney generates $14.8 billion in operating income and has a real, sustainable profit. Netflix is actually losing vast, ever larger amounts of money, despite being at around 150 million paid subscribers. Which is a pretty blatant admission that they can never generate a profit with the current approach. And that's before the competition heats up a lot further with Apple and Disney, both of which have far deeper pockets. Amazon ($40b in cash) also now has far deeper pockets, thanks to their AWS & ad profit machines.
Perhaps the most interesting figure for Netflix is the quarterly interest cost. $132m in debt interest cost for all of 2015. $128m in interest cost just for 4Q18 alone. Soon their interest costs might match the size of their 'profits' at the rate they're going on debt accumulation (and assuming likely slower growth with their scale). They're looking at eventual debt downgrades and higher interest costs if they can't stop the worsening negative cash flow. The debt markets will get more skeptical. Long-term debt was $3.3 billion at the end of 2016. A mere two fiscal years later it was up to $10.3 billion. For a company their size that's an enormous jump. Given they've largely saturated the richer markets and the only thing they have left are fee hikes to try to improve margins, I fail to see how they can turn the corner given their financial metrics keep getting worse as they get larger. What new markets could they add that would spur some great positive cash flow turn? I suspect they're nearing the limits of price increases in the US, to make matters worse.
They've placed a bet on some magic corner-turning event based on scale, meanwhile two ferocious competitors with unlimited capital have just entered the race.
I think Netflix is worth less than half what it is presently trading for. I'll note I have no position in NFLX (long or short). Most of the valuation is story-based. I'm skeptical the story entirely survives the hard reality of Netflix being drastically outgunned by their three largest competitors. Netflix essentially contends Disney and Apple entering the space full bore won't slow them down, it's an absurd notion to pump to shareholders. If Disney is smart, they'll finish eating Hulu and use it as further value leverage in the Disney+ push. Apple now views such service offerings as critical to their future, so they're likely in it to seriously compete.
CBS is worth $19b, with $2.9b in operating income for 2018, compared to $1.6b for Netflix (at a $156b market cap). I like to hold that up as an example of what the medium is often really worth (obviously not meant to be a direct apples to apples comparison between the two). This is especially true once you move beyond some investor fantasies that streaming with monthly subscribers is somehow special. The ever larger capital blackhole of Netflix is a nice demonstration of the hard economic realities in expensive video content production.
I currently go through phases of Netflix and Amazon Prime. Once Disney+ launches, I can see us moving to Disney+ while keeping the Amazon Prime. Not 100% sure, but it's likely.
The fact is that there's no subscription streaming service that has a great movie catalog. You can subscribe to DVDs on Netflix--still pretty good though the back catalog is rotting. Or just buy/rent a la carte either streaming or disc. Welcome to our unbundled future.
For current content, there's also Redbox today.
Personally, I'm basically fine with 1 or 2 streaming services for a combination of general content and exclusives and renting/buying the rest in some manner. I should cancel my cable though because I never watch it even though it means that leaves me without live TV. Yeah, I know there's YouTube TV but I really don't watch enough for it to be worth it.
They've added record 6.9 million subscribers. That's new subscribers - defectors.
I'm not sure what would cause the "masses" to re-evaluate the quality of selection, especially taking into account the fact that Netlifx is now adding tons of content they'll own forever, so 10 years from now "The Crown" and "The Stranger Things" etc. will still be there plus all the shows and movies they've added in those 10 years.
Competitively Netflix is safe because to watch those 250 top movies online in one place you can go to... nobody.
If you seriously can't find anything to watch on Netflix, I suspect you either are uninterested in trying new/unknown things or are so hard to please that no service could satisfy you. I can't imagine either is a demographic all that large or rewarding to pursue.
I don't mean that in a bad way. Rather, I don't think it's in our best interest for any single company to own the entire catalog that would appease these demographics.
People have been foreseeing a mass exodus from Netflix for years now though, often when Netflix loses their hobby horse show. Yet Netflix only grows in net subscribers. Since everything always comes to an end, surely you need to put a timescale on your claim if you want to receive credit when Netflix finally collapses. Even Chicken Little is eventually right.
And, if you look at piracy for the lay person, it's not all that attractive. You have to somehow be able to sift through the bullshit streaming and torrent websites will throw at you. Somehow click the right links along the way that don't dead-end in a fake paywall or ad. And after torrenting something, you might get a scary letter from your ISP which happened to my sister in Austin with Comcast.
Do I wish there was a video equivalent of premium music services for video? (i.e. had most content) Sure. There isn't. So I'll pick some streaming services and I'll buy a la carte in various formats and just accept there's no single bundle that gives me everything for a monthly subscription.
Well, best best interest would probably involve mandatory, open-to-all-interested-parties licensing terms/fees in order to enjoy copyright protection, and outlawing vertical integration of end viewer distribution with production. Also I'd like a pony.
Put on your non-tech-savvy hat and google "watch <movie> online" or "torrent <movie>" and try to navigate a streaming website. You need to be somewhat tech savvy just to navigate the minefield. For example: https://pelispedia.tv -- it's confusing, frustrating, and full of popups/ads.
The layperson depends on someone more tech savvy to give them instruction. But even then, I once showed my sister how to download torrents and she got a scary letter from Comcast in Austin. My guess is that Comcast simply participates in the seeding process of the top 10k torrents and waits for its customers to connect. She hasn't tried since.
Not to mention all the side-loaded Firesticks with Popcorn time.
If you want highly rated content of all genres and formats (TV and movies), you get more than you could ever hope to have time to watch.
If you want to watch one specific thing, then yeah chances are good it's not there.
That's where I'll have to stop you, as its still a very cheap service comparatively.
I worked at Blockbuster toward the end of their run, it was about $4-7 dollars for a single rental.
Current streaming rentals on Amazon range from $4-8 as well.
Netflix, streaming only, is currently $13 per month.
The only alternative I think is very good is HBO, which is $15 per month. They usually have before-cable-run-but-after-initial-rental-period movies. And they have a handful of stellar TV shows. We still struggle to find something to watch on that service.
Netflix disks are a better comp. They cost the same as streaming does and while the selection is far better, the limited capacity is far worse for most people.
The real competition will probably end up being piracy, eventually. Netflix streaming is getting worse content. And if this decline continues, piracy will become much more favorable.
So at some point I decided that a subscription service with almost everything I was interested in would socialize things appropriately and reduce the transaction costs so that piracy and this anarchic tendency wouldn't be worthwhile. After a few years of using the service, I feel that it is only a moderate convenience. In the end my watching habits haven't changed. I am saving some time downloading random things from random horrible websites. But the selection is horrific. There is no way to actively decide to watch something. There are just a handful of options. There are no classics. It's worse than the selection on an international flight. And it's getting expensive.
Blockbuster at that price isn't a great example. Redbox Blu-rays are $2.12. I live in an area with a relatively low population density and there are three Redbox machines within short driving distance. Each with a solid selection of new releases (Aquaman, Glass, The Mule, Into the Spider-verse, Green Book et al.). Redbox has ~34,000 locations.
I've already seen many people who I would never believe could pirate anything reliably turn to sharing Plex libraries.
eg 3 year lease that's a decent deal but if you don't cancel and take a 4th the lessor makes a large profit. IT equipment leasing is frequently like this.
I mention by name it in case anyone wants to dig deeper with this idea w.r.t their own business...
I love that I have the Office on demand always, but that used to be true about It's Always Sunny, which is no longer there. So I can't even trust that the shows I keep Netflix around for will still be there. Including their original content like the Marvel stuff. Nothing is a safe bet to stay on Netflix.
It's also why you don't see certain prestige shows on streaming such as Fargo, Twin Peaks: The Return, Preacher, or Legion. They know that people will pay top dollar to rent/buy the really good stuff.
prime, another channel.
disney's thing, another channel.
so, if this is now the norm, what is the next next thing that will "disrupt" these old guard?
as a content provider, you have an edge in that your library is larger than theirs. by allowing them to stream your content, you make profit today, but subsidize a competitor building their library.
and in the transaction, you loose the most valuable component of the sale, the customer data. now your competitor has viewing habits of your customers, to which you are now blind.
10 years ago, it was really hard to stand up a streaming service for many companies, but that barrier is much lower now. 10 years ago, it was mostly tech companies that realized the value of data, now others are catching up.
what is the next thing to disrupt the old guard? probably something not movie/series related. all this stuff, listening to music, watching a show, posting on fb, reading on hn are all actually competing for our time. we are running into an era where our times are stretched thin and we finally see unrelated things compete. so the next disruption may be something completely new.
some said people posting content on youtube is that next thing. I am not so sure, I dont always want to watch someone rant about how bad the new star wars is.
Contrast with Amazon which has an incredibly deep library and is "free" to some extent with Prime.
Netflix is in trouble.