This was good too: "Why would anyone want to watch anything other than new releases"
And this is why Netflix's share price is a good 15 times higher than Blockbuster's right now
And this is why Netflix's share price is a good 15 times higher than Blockbuster's right now
In the past, information was substantially easier to find on things that were new. Finding good movies in the so called "long tail" of a video store involved book research, knowledgeable friends, or lucky guesses. You could choose what had been recently marketed to you or the devil or the unknown box. Modern information networks have changed this reality largely in favor of the unknown box.
The truth is that a large percentage of new creation is not really worth your time. The biggest advantage the new stuff has is frankly that it is new. As information systems progress, people will have an easier time separating hype from substance. This will effectively make older quality creations more desirable.
It is probably fanciful, but I'd expect his statement to be exactly wrong in the long run. The reality may become "why would anyone want to watch new releases"?
The fact that the CEO is confused really is obvious in the market as well as in the interview.
NetFlix has become the premium rental service. RedBox is the budget service. Blockbuster is getting squeezed out of the market from both sides.