Netflix CFO Sees No Future for Amazon Rentals 136
Dave H. writes "In comments made at the Morgan Stanley Small Cap conference last week, Netflix CFO Barry McCarthy says he doesn't think Amazon.com will expand its video rental market into the US because the retailer's infrastructure wouldn't work to its advantage with video rentals. He also sees the window between theatrical and DVD releases shortening, which is a Good Thing." From the article: "The price of entry is much higher now than it was in the past, both in terms of the cost of locating warehouses and just the mere fact that Netflix and Blockbuster are both considerably larger now. McCarthy then said that Amazon is in the classic make-versus-buy dilemma, noting that the company can either start from scratch or try to acquire service through either an acquisition or partnership." Update 6/20: Barry McCarthy's position at Netflix corrected.
Unlike, Amazon.... (Score:1, Funny)
Oh, wait...
Re:Unlike, Amazon.... (Score:1)
Buy out then??? (Score:1)
Re:Buy out then??? (Score:2)
Re:Buy out then??? (Score:2)
Amazon has been no friend of either Seattle or any place it has landed. Sure they could do it themselves, and then export the whole fofillment thing to Mexico or India. A plane full of DVD mailing envelopes can make it to the states in a day.
Re:Buy out then??? (Score:3, Interesting)
Some things are still cheaper to handle locally.
If I mail a DVD to netflix on monday I get a new DVD wensday. Try having that turnaround time when using an out of state facility, let alone an out of country one.
Re:Buy out then??? (Score:2)
You would think, huh? But look at all the stuff that goes overnight by air right now: mail (yes, the USPS ships most First Class by air), UPS, FedEX, flowers from S. America, food from all over the world. Ever been inside a cargo plane? More room than you think, passenger planes have a LOT of stuff in them that cargo planes do not.
Re:Buy out then??? (Score:2)
Look at the cost of shipping something from south america to a non major metro area in the US. Then compare shipping it from a major metro US city to a non major metro area in the US. The cost difference is astounding.
I can't wait... (Score:3, Funny)
Re:I can't wait... (Score:4, Funny)
I can't wait until I become a CEO of a large company so that I can patent what other CEOs already do and think.
Re:I can't wait... (Score:2, Funny)
Re:I can't wait... (Score:1)
Abstract
The role CEO is both novel and none-trivial, as such, this patent is written to outline these processes.
Claims
1. The CEO's age shall be greater than 40
2. The role shall have been applied by using the following options
Brown nose way through ranks.
Born with a silver spoon.
3. The CEO shall spend all his time in the office barring the following ommisions:
During a golf tournement
During another unspecified sporting event
During the mornings
Re:I can't wait... (Score:1)
Re:I can't wait...Other IMPORTANT CEO HEADLINES (Score:5, Funny)
2. RHEL CEO sees no future for UNIX
3. Google CEO sees no future for Yahoo!
4. RIAA CEO sees no future for P2P
5. CBS CEO sees no future for HBO
6. Western Digital CEO sees no future for Lexar
7. Oracle CEO sees no future for MySQL
8. Sun CEO sees no future for Dell
You read it here first!
Re:I can't wait...Other IMPORTANT CEO HEADLINES (Score:2)
but the greater point is when reporting the analysis/opinion of a direct competitor (the CEO of direct competitor, no less), you need to be ESPECIALLY SCEPTICAL about their analysis....
Netflix does indeed have the "well-embedded" position in their space, but i can quickly think of ways that i could attack that position, were i the Amazon CEO...(all just off the top of my head NO deep thoughts provided)
1. offer a free DVD of the customer's choice for every X months of rentals
2. cut prices b
Re:I can't wait... (Score:3, Funny)
Your posts have no future. Please leave and let our company's posters handle things.
what he really said was (Score:5, Insightful)
Re:what he really said was (Score:3, Insightful)
Most that start their own company and do well, at some point want to retire and be bought out.
Tens of millions goes a long way towards retirement.
Re:what he really said was (Score:1)
It would be like Linus selling Linux to Microsoft.
It just wouldn't happen.
Now, if members of your own hand picked team come up with a buyout offer, or maybe a business partner from the very beginning, or your own chi
Re:what he really said was (Score:2)
You come up with an idea, form this company (like Netflix)... and it grows. While you are CEO, you're raking in the cash, doing all you can to IMPROVE your product to get more customers to get MORE MONEY.
That's what it boils down to.
If you accepted a buyout, you'd be rich. The end. Retired, never having to work another day in your life.
Why would you continue to care about customers that do absolutely nothing for you? It wouldn't be your problem anymore, it'd be th
Re:what he really said was (Score:1)
Not exactly. The point of running a business is to make a proffit. It's a job where you hire yourself (self employment).
When your ready for retirement you sell out or pass it down.
(Selling out gives you a nice retirement fund, Passing it down gives your children jobs).
Linux however is a project. Money is not the objective thus it isn't for sale.
That however won't prevent Microsoft from making an MsLinux. Just means Ms Linux will have to compeate with
Blockbuster Online (Score:5, Insightful)
I was impressed that they had many shipping locations. Unfortunately I was unable to take advantage of these because it took 2-3 days to get mail from the shipping location to my house, which is in the same state as the shipping location.
It seems shipping locations would be a lot of the cost of setting this up. Perhaps smaller businesses could pool resources?
Re:Blockbuster Online (Score:2)
Don't forget that you get the two free instore game/video rental coupons a month. When you consider that games rent for $6.99 each, think of it as paying for the game rentals and getting the month of video rentals (12-15 a month) for free...
Comment removed (Score:5, Funny)
Infohilsm! (Score:3, Funny)
Infoholism... You should tell me that 10 years ago... Or at least before RSS was invented...
Re:You're the wrong demographic (Score:1, Insightful)
I use to have NF and I have to say it is a amazing service that saves me time, and increases my enjoyment of the time i spend in front of the TV.
NF allowed me to make a list of all the TV shows and Movies that I wanted to see. I was able to make sure that I would see those random movies that people always recommend, but i never remember when i get to the video rental shop.
I stopped watching a lot of TV becuase I was able to watch all the same shows i like, but commeric
Re:You're the wrong demographic (Score:2)
Aside from selection, that is the best part of Netflix. Now, when I read a movie review that makes me want to see it, I just open a new tab and put it in my queue.
Re:You're the wrong demographic (Score:1)
Re:You're the wrong demographic (Score:5, Funny)
I've never heard of anyone doing that to a cat.
Re: (Score:2)
Road Warriors (Score:2)
Don't forget road warriors. Back when I used to have to travel for work, I had a netflix subscription. It was great. I could watch movies on the plane, and in my hotel room if I was in some crappy little town with nothing to do.
The best part is I could grab the movies at home and return them from ANYWHERE. Then, I'd have more movies waiting for me when I got home.
It required no thought or effort on my part, a
Re:Blockbuster Online (Score:1)
The best way around that is to rent two or three days in advance of anticipating when you want it. With the concept of a queue and no limit on the length of time the DVD can be in your possession (in the case of Netflix), you're all set.
One can imagine the server peak for Netflix is probably Monday and Tuesday for those planning for the weekend.
Though it is funny to live less than one mile from a Netflix warehouse and know I could walk over there, pick it
Re:Blockbuster Online (Score:2)
My ultimate dream would be on-demand movies, but in lieu of that and soul-snatching DRM that would have to be in place to actually make it a reality, I wish Blockbuster would allow you to order a disc online and then have it burned at the local store for pickup. They'd have to work out some kind of payment arrangement w/ the MPAA (I think?), but if anyone could do it right now it's probably Blockbuster.
Re:Blockbuster Online (Score:1)
Re:Blockbuster Online (Score:2)
I thought the same thing. I began to generally hate the service, which was definitely a factor in cancelling it.
Re:Blockbuster Online (Score:2)
This added up to a waste of my subscription.
Theatrical Release TO Dvd Release (Score:3, Insightful)
Re:Theatrical Release TO Dvd Release (Score:2, Interesting)
Re:Theatrical Release TO Dvd Release (Score:2)
Re:Theatrical Release TO Dvd Release (Score:2)
Re:Theatrical Release TO Dvd Release (Score:2)
Re:Theatrical Release TO Dvd Release (Score:1)
Most films are not block buster hits and not having to rebuild interest from scratch can save a lot of money.
Time between theatre and DVD (Score:4, Interesting)
Re:Time between theatre and DVD (Score:5, Insightful)
Nowadays, every DVD release is dictated by the marketing department. Almost two years ago we fundamentally changed every aspect of our workflow in order to be able to deliver final DVD audio to the authoring department faster. We shortened our delivery time by a week, but marketing wants it much faster - often, this is not possible.
The biggest problem is that the company is so large and there are so many titles in the pipe that the scheduling of elements being created by outside venders is very problematic - final approved picture, final approved audio, extras, subtitles, DVD menus, etc. Not to mention the fact that there are so many idiots up the chain that have no idea what's involved in getting the actual work accomplished.
The President of my company has said that he wants to eventually see the day when a person can walk into the theater, watch a film and on the way out buy the DVD. This could, and probably will happen, but it would likely be a domestic only 5.1 and/or Lt/Rt with little or no extras. The replication time alone would probably push back the theatrical release a week or so.
Re:Time between theatre and DVD (Score:3, Insightful)
That would be awesome. I really dont like all the extras, and you can't tell me it doesn't cost more money to make. If what you suggest is true and the movies are priced cheaper than current DVDs, sweet.
Re:Time between theatre and DVD (Score:1)
Re:Time between theatre and DVD (Score:2)
People are already doing this with pirate copies.
Last time I went to the cinema, there was someone a minute down the road with his DVD warez neatly laid out on the pavement.
How's the studio going to undercut this guy?
Re:Time between theatre and DVD (Score:2)
For example, whenever I got to Fenway Park I pick up some Red Sox souvenirs; anything in/immediately around the park will be legally licensed, even with the outlying presence of bootlegging vendors who charge significantly less.
Check out Yawkey Way (next to the park, filled with official vendors) on any home game night and you'll see what I mean, it's PACKED with fan
Where do you live? (Score:2)
Are you the pope? The Dalai Lama?
Given same quality people will buy the cheapest.
The burgeoing black market of non "official" stuff attests to that.
Re:Time between theatre and DVD (Score:2)
Re:Time between theatre and DVD (Score:1)
Re:Time between theatre and DVD (Score:1)
Theatrical release date: Nov 19, 2004
DVD release date: May 3, 2005
Took 2 weeks shy of six months, which is the norm for most movies.
I worked in video rental for several years, getting out of it about 4 years ago. Six months was the time between theater release, and video rental release. It was then anywhere from a month to sometimes 3 months before it was available to consumers to purchase. Once DVDs came out, the biggest hits wer
Re:Time between theatre and DVD (Score:1)
Before the theatrical release?
A few days...
In related news... (Score:1)
What, I'm just doing what all these CDO's do. Tell you what, when one of these guys says 'Our business model is flawed. We're totally going to get taken over by another company' let me know, because
Most people... (Score:1)
Re:Most people... (Score:1)
the bigger issue is the slow uptake for media center PCs. Plus, no one has developed a low to moderate cost media center appliance designed to go into your living room. It doesn't exist, so movie downloading as a business is in the air. At best, mail order movie rentals is a risky business to invest in. The ramp-up time to develop the business (and cost) might be a waste, as one can often not account for public sentiment.
I read an interesting article the other day about J.K. Rowling. She's decided
Re:Most people... (Score:2)
My idea of "free" doesn't include broadband at $45/mo + a PC with DVD recorder + software + media + surcharges for gigabyte downloads over IRC or Usenet.
Re:Most people... (Score:2)
The big thing is that is far to cheap for the studios, but I'm not sure they can keep costs this high... There are too many people who know how and are willing to get Movies via net for $1 or less, and full first
Re:Most people... (Score:1)
Re:Most people... (Score:2)
I've said it before and I'll say it again (Score:2, Insightful)
Re:I've said it before and I'll say it again (Score:1)
Re:I've said it before and I'll say it again (Score:2)
Re:I've said it before and I'll say it again (Score:2)
I don't see why. I have downloaded shows that looked great at 1 Mbit/s. Let's triple that to be safe. 3 Mbit/s is still less than I see fairly regularly during downloads. (That's still only half the bitrate of a DVD, but DVD compression isn't the most advanced, either). Why would 100 Mbits to each home be necessary?
Re:I've said it before and I'll say it again (Score:2)
Re:I've said it before and I'll say it again (Score:2)
From the article: (Score:5, Insightful)
There you go, cause and effect. What else did you expect? Do you think the CEO of Netflix would say: "the market is expanding rapidly with absurdly high profit margins and plenty of opportunities for newcomers. Amazon is perfectly suited to join the competition and can make tons of money with little alteration to their existing infrastructure. I'll be the first to welcome them with a handshake while we prepare to downsize!"?
Doesn't seem like anything out of the ordinary to me.
"As to whether or not Amazon and Netflix are in negotiations for a partnership, McCarthy said "my comment is 'no comment'." I think that statement is about as obvious as obvious gets. No doubt non-disclosure agreements are par for the course, but sometimes nothing is so revealing as a "no comment". Then again, that could be read as some kind of public invitation to Amazon. Idunno... this is
Re:From the article: (Score:1)
Hope that helps.
I guess I've got something else on my mind (Score:1, Offtopic)
Re:I guess I've got something else on my mind (Score:2)
Re:I guess I've got something else on my mind (Score:2)
Wow! (Score:4, Funny)
4 a month = useless. (Score:4, Insightful)
amazon's service only allows 4 dvds a month. and you're only allowed 2 at home at any one time. at least, thats what they offer in the UK.
now, surely the people that are most likely to use a service like this are going to want alot more than that in return for their monthly fee. i watch alot more that one film a week, and i'm only an amateur film buff. so if i were to get one of these services (which i may do in the future) i'd be getting the one that allows me unlimited DVDs.
i did the math, and using the amazon service, you're not saving alot by getting the monthly fee. and if you only get 3 in one month, you lose money compared to renting(assuming renting is £2.50 like at my local rental place).
and if you live near a good library, its even cheaper and you can keep the DVDs for a week.
i'm usually a great supporter of all things amazon, but they really need to rethink their business model.
Re:4 a month = useless. (Score:2)
Their turnaround is also
Re:4 a month = useless. (Score:1)
Re:4 a month = useless. (Score:2)
Re:4 a month = useless. (Score:2)
So depending on how much of a buff you are, you can have more films out.
I'd never move away from Netflix. I love their system, and despite hearing about other people having problems, they've been terrific for me. One cracked disk in many months of subscription, and that's the only problem.
Re:4 a month = useless. (Score:2)
Re:4 a month = useless. (Score:2)
3<=n<=8, not 3=n=8. Thanks, Slashcode, for not doing entity substitution for me.
Netflix has improved service (Score:2)
Just signed up for Blockbuster's free trial to see how that goes.
Re:Netflix has improved service (Score:3, Insightful)
An interesting question is whether Blockbuster will find a better business model than to mimic NetFlix. It was obviously an immediate counter-move to watch their market share
Re:Netflix has improved service (Score:3, Interesting)
Re:Netflix has improved service (Score:2)
You are so right. This would also allow them to make late fees more lenient, since there would be no shortage of little round plastic disks to worry about.
They could even let you keep them as long as you wanted, or forever, so long as you had $20 on deposit for each DVD you had out at one time. If they were burning DVDs locally they could adv
So what he is really saying... (Score:2)
CFO, not CEO (Score:3, Informative)
Equity Marketing (Score:2, Insightful)
Re:Equity Marketing (Score:2)
NetFlix is afraid that Amazon will enter the market against them, leveraging their massive infrastructure, and they want to p
Re:Equity Marketing (Score:2)
Re:Equity Marketing (Score:2)
Re:Equity Marketing (Score:2)
Re:Equity Marketing (Score:2)
So, in fact, the infrastructure is basically here now. My $
Re:Equity Marketing (Score:2)
Not in the US != No Future (Score:3, Insightful)
So what, exactly?
I'm still waiting for my Netflix+Tivo... (Score:2)
And? (Score:1)
General comments (Score:1)
Sales Pitch? (Score:1)
A business with a lifespan. (Score:1)
Tough market to enter. (Score:2)
Of course, Amazon already has a distribution network... More competition wouldn't hurt, and I'm sure that Amazon would do a better job of it than Blockbuster Online.
On a side note, any Netflix users out there who are tired of fighting to get your queue in order, try out my Netflix Queue Manager program, FlixQueue, at http://www.5hyphen.com/FlixQueue [5hyphen.com]. It will s
Re:Doesn't matter (Score:1)
"Once the US housing bubble collapses there will be a total economic collapse."
I'd settle for a levelling off. $60,000 houses in parts of Arizona where there are NO jobs at all, going for more than asking price of >$250,000, the day they hit the market? I don't get it.
I'm not convinced a total collapse would be a bad thing, altogether.