Source: http://www.engadget.com/2009/08/07/subscription-services-like-netflix-watchnow-generates-20x-the-re/
Now this is one stat from an analyst that we wouldn't refute, but we do wonder how Versaly Entertainment aquired this information. How exactly does one calculate streaming revenue from a subscription service like Netflix anyways? To be fair we are only assuming that Netflix is involved here as it wasn't specifically mentioned, but we really can't think of any other subscription based video streaming service. Our best guess is that the revenue in question is based on what the studios are receiving and not for the service itself. Regardless, it isn't hard to figure out why no one is paying $4-$5 for the 24 hour rights to watch a movie on any of the pay-per-download services out there. Especially when you can rent a movie from just about anywhere via Redbox for $1.
Read -- Subscription downloads outperform pay-view.
Read -- Redbox undermining DVD value
Filed under: HDTV, Home Entertainment
Subscription services like Netflix Watch Instantly generate 20x the revenue of pay-per-downloads originally appeared on Engadget on Fri, 07 Aug 2009 20:22:00 EST. Please see our terms for use of feeds.
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