If it's crap ... We'll tell you
What now? Details?!
the link leads to a news article. Click it.
I have two thoughts concerning this development. First of all, fuck Starz, sure they added a lot of content, but when a new movie comes out, I want to watch it in HD, and nothing that Starz provided to the service was. Streaming content already has a lower video quality than physical media due to compression, so I'd rather just buy the Blu-Ray. I don't care about that part.
The other thought is that the article reinforces the fact that movie studios are behind the times when it comes to new forms of distribution. They're going to feel the pain of that soon, I'd wager, as people just stop buying their overpriced home video products. I for one buy a lot of my movies when they go on sale after a few years and I can pick them up for $15 or so. I don't usually drop $25 for a new Blu-Ray because, let's face it, an average of $12/hr for my entertainment just isn't worth it.
With the DVD business shrinking more every year, Netflix needs new streams of revenue to compete with rising services like Amazon. After faltering heavily last year by consecutively raising prices and proposing the DVD-only Qwickster, Netflix needs to come back hitting hard. Any company whose stock falls by 70% in less than a year needs to rethink their business strategy. By obtaining the rights to shows as well as creating original ones, Netflix hopes to expand its customer base. Only time will tell if this strategy will work.
Well there's this new up-and-coming website called Vudu.com that gets the newer releases quicker (and as a buy-as-you-go kinda deal, not subscription based), so maybe this is there way of saying "Well we might not be able to have the latest movies, but we'll make up for it with our TV selection!"?
Yeah only time will tell if this helps them out any; but it can't POSSIBLY be any worse than their panic-attack-driven price spike a few months ago that put them in a shitty situation to begin with...
The price jump alone wouldn't have had such a bad impact if it weren't for their completely delusional Qwikster debacle. Add those two things together and you get a 70% drop in stock price! Yikes.