Tuesday, January 27, 2009

Netflix winning

As we all feel the pinch from the bad economy, where are you willing to put your money.  It seems that Netflix is one place...with a 45% growth in the last quarter, and reporting $22 million in profit this quarter, the online entertainment business is sitting pretty.  It makes sense...a trip to the cinema for two, with ticket prices at $10, drinks, popcorn...you're easily looking at $40, and a night in at home in front of the TV watching a Netflix movie is cents, (monthly subscription fee).  The most interesting news is that Netflix's streaming service is really taking off.  This is backed up with a report that came out yesterday from Solutions Research Group, stating that 70% of 18-34 year olds are watching content online...all forms but mostly professional and longform.  WIll everything go online?  Years and years ago, when I was a a young media pup, the internet was just starting and the big prediction was a one screen universe. Everything on one screen, internet, TV, mail, everything on your TV.  This is now turning into the everything on every screen. you can watch your movies on TV, online, in theaters, and on your phone.  This is where it is going...embrace or die businesses.  To be honest, when I see Reed business publications laying people off, it would seem to make sense to get rid of the print business and put it all online.

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