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 shift from VHS’ to DVDs, and now it’s not Blu-ray’s turn as you might think. We are going to skip this part thanks to the Internet and we will online movies renting is going to take over. Users are renting more and demanding more movies, and they don’t want them to be delivered via mail, they just want them to be streamed directly to their PCs. A real time saver, and a thing that definitely “facilitates” your life.
The industry is on the verge of shifting again. There are lots of advantages of Internet movie services are enormous, both for the companies as well as for the customers. Netflix is currently acquiring content license, and why wouldn’t it do that? The company definitely has to shift to online movie distribution so it’s not weird to hear Netflix acquiring content license. DVD rentals will drop dramatically in the next five years if it were to believe some trusty detailed reports. It seems like Netflix CEO Hastings is doing the right thing in shifting to online movie distribution, but only time will tell.
