Nearly a third of all Netflix subscribers with broadband internet connections stream video to their TVs using the company’s Watch Instantly service according to a new report from TDG.
That figure includes 24.6% who use both their computer and TV for Netflix streaming and 7.2% who watch exclusively on a TV. Another 30.7% only use their computer.
Even though the remaining 37.5% don’t use the service at all, the majority are at least familiar with it.
The increasing number of viewers streaming video to TVs is a reflection of the company’s long term thinking. In fact Netflix has taken a smart approach to the streaming business from the very beginning, when it was little more than a novelty.
Perhaps the most important detail of their strategy has been the understanding that some things are worth more when you give them away.
That’s not to say streaming video has no value. But its value hasn’t been in producing a unique revenue stream. Instead they’ve used it to promote their DVD by mail business and help them continue to increase their subscriber base.
The decision not to charge extra for streaming has allowed them to make other good decisions, such as avoiding overpriced content deals.
The number and variety of titles available initially through Watch Instantly was extremely limited. There were no big hit movies or TV shows when the service debuted in 2007.
Had they been charging extra to use the service that would probably have been the kiss of death. But they weren’t. As a result, anything they offered was a bonus.
[More]>>
Result for: embracing technology
MP2P Techonologies has announced that they were recently served with a lawsuit by the Spanish branches of the Big 4 labels. Warner Music Spain, Universal Music Spain, EMI music Spain and Sony BMG Music along with the Spanish branch of the IFPI, the Promusicae, are seeking $20 million USD in damages for what they call “unfair competition.”
“We intend to vigorously defend ourselves against this shake down attempt by the major label cabal,” said Pablo Soto, founder and CEO of MP2P Technologies. “Rather than embracing technology, they have chosen a path that will ultimately lead to their own demise, as evidenced by the label’s consistent decline over the past decade. Litigation is in itself not a valid business model for them, however, it has been a dogged and futile pursuit of theirs since the advent of P2P.”
“PROMUSICAE (Spanish branch of the IFPI; international arm of the RIAA) tried to proceed with civil suits against users of P2P networks in Spain and, after being halted by the Court of Justice of the EU, it has now decided to go against a neutral communication tool such as P2P technology,” added Soto.
Soto, for his part, is known internationally as a P2P pioneer among the ranks of Justin Frankel (creater of Gnutella) and Shawn Fanning (creator of the original Napster).
