Netflix was a juggernaut as a DVD-by-mail delivery service, but its self-professed evolution into a streaming video company has it going head-to-head with pay-TV service providers and a movie industry that's struggling with the collapse of a once-lucrative DVD market.
This year, the company that made Blockbuster a flop, will, for the first time over the holiday season, spend more on streaming its movies than it does on postage, reports the New York Times.
And, Netflix believes that as it leaves its position as the U.S. Postal Service's top customer, it can move onto Hollywood's VIP list as it works--and spends--to acquire more recent content. Analysts agree.
"As the home entertainment industry comes under pressure, they are the only guy standing there in a red shirt writing checks," said Rich Greenfield, an analyst at BTIG Research. "That makes Netflix really unique right now."
For more:
- see this NYT article
Related articles:
Netflix debuts streaming-only plan, raises prices
Netflix CEO: We are now primarily a streaming company
Netflix: We'll stream video to Android devices in 2011
Five potential mates for Redbox streaming play... the winner likely is Amazon
Netflix launches disc-free streaming on Wii, PS3
Dolby digital surround sound coming to Netflix instant streaming video
Netflix cuts deal with Sony for deeper catalog access for streaming