Netflix says: DVDs will be around for the next 10-15 years
Yep, I concur. DVDs will be around for a long time. Movie Marketing & PR interviewed Netflix’s Steve Swasey:
Netflix: DVDs will be around for a long time. Netflix will use DVD rental—and Netflix [DVD mailing rental] will grow for at least 5 more years. And even after the peak, whenever that is — there’ll still going to be people wanting to watch movies on DVD. DVD is a very, very good format, and it’ll be around for a long time. People will be watching movies on DVD for another 10-15 years—at least—if not more. If you think about it, VHS tapes still are clinging to their last breath of life after 30 years.
MMktPr: So basically, you don’t think DVDs are going to be the VHS of yesteryear?
Netflix: The growth of DVD rental will be for at least another 5 years, ten more years even. We haven’t seen the peak. We have been nowhere near the peak or close to DVD rental growth.
Netflix are smart .. they’ve used the DVD business to underwrite their streaming business, and correctly recognise there will be plenty of good earnings on the back of DVD rental for the coming 10-15 years. They’ve no intention of abandoning that market and neither have we!
March 25th, 2009 at 10:27 pm
Hi Applebox
Quickflix as Australia’s largest independent online DVD rental company agrees with Netflix’s outlook. With 90% of Australian households owning at least one DVD player and the simplicity of DVD, it will be around for a long time yet. Blu-ray is the new high resolution format and fast and cost effective streaming and download is part of our exciting future.
Great to hear that Applebox is doing well. New physical store formats such as AppleBox and Red Room DVD and online DVD rental services like ours at Quickflix and BigPond Movies bring exciting new choices for Australian movie lovers.
Stephen Langsford, Quickflix Co-founder
March 28th, 2009 at 5:13 pm
I mentioned to Simon the other day that, in a fit of desperation for an episode of Arrested Development after Applebox had closed, I downloaded an episode from iTunes. For the convenience, I was willing to pay a price disproportionate to renting a muli-episode disc. I did it twice. And then, two thirds through a billing cycle, my broadband was exhausted and Optus dropped me back to dial-up speed. I can only imagine this happened because of the episode downloads (on top of usual usage). So, if correct, the size of the pipe and cost of data will stiffle growth of online delivery of movies and video.
March 29th, 2009 at 11:50 pm
Too true Alister! Being dropped back to dial-up speed is a rude shock. We’re entering an era where home entertainment truly is multi-channel. There’s mail-order, local & retail DVD, payTV, online downloads (legit and pirated), gaming and the Internet (from short form clips through to social networks). Your experience whilst a good indicator of the current limitations of download, is also a good indicator of new avenues opening up. The market has changed forever, and now renting a DVD will sit within a download here or a night on facebook there. Which means as operators we’ve got to get smarter to keep our service relevant. That might be mail-order by Quickflix or online/local to APPLEBOX … but I reckon the days of wandering aimlessly along isles and shelves is a throwback to a by-gone era.
March 30th, 2009 at 9:17 pm
Yeah! survival of the fittest or should I say the SMARTEST!! and all that. Hi Stephen. hope you guys are holding up ok with all the economic trauma around.
Cheers
Sarah Gilligan