Geek Outpost

Netflix makes money from DVD renting. The company is just mailing DVDs to its customers and it’s doing really well although the sales have decreased from $15.9 billion last year to $14.5 billion. A report says that Netflix rents half a billion movies a year, and the number is growing and it will continue to grow. But why is Netflix losing money? Well, not losing, but the revenue is decreasing and is CEO Reed Hastings saying that they’ll sell DVDs 20 years from now?

According to more detailed reports, the DVD is in decline. Years ago companies had to convert from VHS to DVDs, and if you think it’s Blu-ray’s turn it’s not! We are going to avoid this thanks to the Internet and  online movie renting is going to take over. Users are renting more and demanding more movies, and they don’t want them to be delivered via snail mail, they just want to be stream them  to their PCs. This is a real time saver, and something that definitely simplifies your life.

The industry is on the verge of shifting again. The advantages of Internet movie services are enormous, both for the companies as well as for you the consumer. Netflix is currently acquiring content license, and why wouldn’t it do that? The company definitely has to move to online movie distribution so it’s not that strange to hear that Netflix is acquiring content license. DVD rentals will drop dramatically in the next five years according to some detailed reports. It seems like Netflix CEO Hastings is doing the right thing in moving to online movie distribution, but only time will tell.