Quote:
Originally Posted by darryl
To what do the authors attribute this? I would guess the factors include:
1. A lot of streaming sources are generally on a Netflix type model and subscribers are watching a lot more bacause of this..
2. It is also more convenient for subscribers to watch at any time. This also increases the number of movies subscribers watch, and the impulse "buys" are no doubt much more frequesnt.
3. Choosing something subscribers like is also a lot easier online than in a physical store.
4. Binge watching is now possible, available and affordable. Take, for example, Amazon releasing all episodes of a series together.
The convenience and related factors still seem to be powerful even without a subscription model. I have friends who love Google's options on their Smart TV and "rent" movies and TV on it regularly at prices I would associate with old physical video stores.
No doubt there are other factors?
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House of Cards was one of the examples. The authors talk a lot about scarcity verses non scarcity. They mention the ability of customers to watch what they want, when they want, and mention binge watching. More than anything it's control. Plus, since Netflix has the data on the individual customers, they can present them with more movies that they might like. Discover ability, if you would.
As mentioned earlier in the thread, on pay TV and PPV, there are only so many slots available. Same in your local blockbusters, there is only room for a few hundred different titles. The movie companies put a lot of money into advertisement and placement. With iTunes and Netflix, you have almost unlimited choices.
(one factoid mentioned is that Netflix paid $100 M for 26 episodes of House of Cards, right off the bat, rather than the usual pay for a pilot that has to fit a specific time slot )