Thursday
01Oct2009
Netflix Looking to Expand Online Rentals
Thursday, October 1, 2009 at 9:08PM
An interesting little item at Product-Reviews.net reveals that Netflix is exploring the acquisition of content licenses to combat about the only crack in the company's armor. DVD sales are dipping and that could lead to a big drop in DVD rentals. And you know which company would be harmed by sluggish DVD rentals.

The thought process behind the content licenses is that Netflix could be moving toward a future in online movie pimping, which would be a natural fit for the name of the company, don't you think? According to Product-Reviews, Netflix rents about 500,000,000 movies a year, but if DVD rentals do indeed topple, rolling out a back-up plan that would be cheaper for the company and the consumer might overtake the existing model in no time.
Of course, there are a number of places online to view video, with the major TV networks and Hulu all sharing new content all the time and other retailers already building online components for video. However, we reported recently about one of Blockbuster's many business snafus and theorized that one of the reasons that company is hurting to the degree that it is stems from a failure to recognize changes in the marketplace. At the very least, it appears Netflix is trying to avoid repeating that mistake.
Even though there is an online hub through Netflix now, the website stresses that only "some new releases" are available immediately. Between making that a more competitive part of the business, I would expect Netflix to expand its healthy catalog of classics, too.













Reader Comments (4)
Great article, but why have netflix adds all over the screen while discussing the merits of their business. Seems like a conflict of interest. But, I am a Netflix Fanboy and don't like seeing the adds all over the internet because they already have my money.
It's no more a conflict of interest than accepting ads for movies I hate, is it? I had The Goods plastered all over this site for about three weeks, but it didn't make that a better movie. However, on a lot of those Google ads, they're keyword driven by the page's content, so if I write something about a movie trailer, you might see an ad for a company that sells tractor trailers.
My only policies on an ad are really that it's not offensive to the eyes or ears. Tough to manage a lot of them because they come through third-party sources into my ad networks, which also have their own campaigns, but whenever I get one of those "Click Here to Win a Free iPod!" flashy ads, I always try to track it down and remove it. I've even pulled one of the highest-paying ads I've ever accepted, a full-pager that loaded in advance of homepage content, just because readers complained.
So I always do my best to keep the advertising at a certain level while also maintaining some kind of structure that makes it (marginally) profitable. But do I think Netflix ads are a conflict? No. I accept ads from the studios all the time and dislike more movies than I like, so I don't believe it taints the coverage to any degree.
Come on guys...Colin has to eat. He can't give us all this info and get nothing in return. Stellar job Colin, as always.
Hey colin,
I appreciate the discussion and want to reinforce that I have Netflix so the ads worked on me at some point. I love the site mainly due to your commentary and insight. Keep it up.