You’d think the king of the over-the-top video heap would have a lot of new releases to offer its online streaming-video customers, but it’s an area in Netflix's library that many have found lacking.
While you can sign up for just about every new DVD release weeks in advance, the streaming options are much different. And it’s something that Netflix surprisingly says doesn’t concern the company. The company almost conceded defeat in new-release territory this week in an interview with The Street, saying “not many people are coming to [us] for new releases since they can get them elsewhere." The Netflix spokesperson specifically referenced retail stores, kiosks and pay-per-view, further saying that new releases "don't drive our business."
Netflix throwing up the white flag creates an opportunity for cablecos and telco TV providers who can offer new titles via pay-per-view and on-demand offerings.
Netflix has taken a lot of heat in the past month since announcing it would raise the price of its streaming + DVD plan from $9.99 to $15.98 per month, effective Sept. 1. Speculation is that a lot of these subscribers will ditch Netflix – or at least the streaming portion of the plan – since the selection isn’t that hot anyway. It’s the second rate hike in the past year.
Nonetheless, it’s still fairly low priced, considering the unlimited access you get – and that could be a major reason why the company doesn’t have more new releases in its streaming offering. Distribution deals with the big studios for streaming video don’t come cheap, so expanding its library could come at a cost, passed on to customers.
Sony’s recent contract dispute with the Starz cable movie network reportedly led to Netflix pulling Sony content from its streaming library in June.
