Tuesday, March 20, 2012

Technology Greece VPN Netflix

Technology, however, is not the only barrier to the inevitable prevalence of VOD. As previously mentioned,the studios are wary of allowing the legal digital distribution of films to take place on a major scale, as theyrely on DVD sales for a large portion of their revenues. Moreover, if the studios start reducing the windowof time in which a movie is exclusively available on DVD after its major theatrical run or allow moviesto be distributed in the home in other formats before they can be distributed on DVD, Netflix and otherDVD rental firms will be adversely aected[17]. They will no longer have a significant advantage in allowingconsumers to view new releases first through their services and more substitutes emerge for viewing thosenew releases (Pay-Per View, iN DEMAND, etc.). The fate of the DVD rental industry largely depends onfactors outside of the hands of Netflix and its competitors.In order to prepare for the demise of the DVD industry, Netflix must make its streaming services availableunder a separate subscription plan of its own. This point will likely come at a time when the penetrationof technology allowing for viewing streaming content on high-end TVs is substantially high. The technologyalready exists in some ways; the Apple TV is used to wirelessly connect to one's computer and retrieve moviesdownloaded from the iTunes store onto the computer, then play those movies on one's television[16]. However,it will be Technology Greece VPN Netflix some time before this expensive technology is adopted by the mainstream population to such anextent that the digital distribution of movies onto those TVs will return large profits. It is also at this timethat Netflix's experience with streaming under the previous tie-in structure will aid it in completely changingits business model toward eventually becoming a digital distributor of filmed entertainment as opposed to aDVD rental outlet. The one important factor it will maintain from its rent-DVDs-by-mail days will be theaforementioned "personalized library" available to its subscriber. Netflix will continue to benefit from theadvantages associated with its superior understanding of its customer base through their databases, whichthey have acquired over the years and will continue to develop. Clearly, Netflix's competitors will be tryingto do the same. As mentioned before, Blockbuster's acquisition of Movielink only serves to signal that it isalso pursuing a similar strategy in trying to survive beyond the death of physical media[20]. Yet, Netflix hashistorically been more adept at understanding its consumers and delivering easier to use content, so it willhave the right tools to experience a growing relative market share as this new market begins to take shape.Since Netflix has been able to market itself successfully even to the less tech-savvy consumers, this shouldnot pose much of a problem for Netflix, and will give it a likely advantage over other firms in the future ofthis emerging market.

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