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Mobile apps not popular for Netflix  (Source: Netflix)
Mobile users not interested in long-form video according to Netflix CEO

The number of mobile devices on the market today continues to grow – mobile devices like smartphones and tablet computers such as the iPad are booming in popularity.

Many consumers that own these devices use them for surfing the web and consuming media on the go. Netflix has a streaming offering that is very popular in the home with movies and TV content that can be streamed through device like the PS3 and to mobile devices like the iPad and iPhone. Netflix CEO Reed Hasting recently stated that the apps Netflix offers for mobile devices has had "very little" impact on business.

He notes that offering streaming on the PS3 and Xbox 360 had a huge impact on business for Netflix. He reiterated that the mobile apps the company offers haven't significantly affected Netflix's bottom line. Hastings also noted that Mac computers had a significant impact on Netflix business when streaming launched on the Apple devices.

These facts have lead Hastings to believe that consumers are primarily uninterested in streaming long-form video on mobile devices. The popularity of streaming on big screens shows the preference of consumers. Streaming media is a big deal for Netflix, Hasting considers the company a streaming firm that also mails DVDs

Hastings also commented on web-connected TVs while speaking at Web 2.0 Summit. Hastings figures that Twitter and Facebook will not see big gains in users from the uptake of connected TVs. He does expect about a third of the TVs sold to be web-connected this holiday season.

He went on to predict that be the end of 2012 just about all TVs sold would be web-connected.



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Yes, but...
By El Soze on 11/18/2010 10:43:00 AM , Rating: 4
No people don't care to watch things on their mobile device most of the time, but I DO care about adding things to my queue.

A mobile app that lets me easily search & bookmark things I'm interested in while I'm on the go would be beyond amazing.




RE: Yes, but...
By Flunk on 11/18/2010 10:53:05 AM , Rating: 1
Don't worry too much about your queue, they're phasing out physical media anyway because streaming has a better profit margin.


RE: Yes, but...
By tlbj6142 on 11/18/2010 10:59:24 AM , Rating: 2
You still might want to add stuff to your streaming queue as (currently) not all Netflix "clients" support searching.


RE: Yes, but...
By RamarC on 11/18/2010 11:14:14 AM , Rating: 2
netflix's revenue and profits are based on subscribers, not rentals. they either pay a fee based on anticipated rentals or, for older titles, pay an overall fee to have the title in their library (irrespective of rentals). streaming is the same. their fees to the content providers don't go up/down based on the number of rentals/streams because they're pre-negotiated.

and physical media isn't going away anytime soon. they offer unlimited streaming but still haven't offered a streaming only subscription in the US. why? they'd lose revenue because it would likely cannibalize their existing subscriber base (especially the one-rental-out bottom level).

one of the best things about netflix is their library has tons of old/obscure dvds that will likely never be available streamed because demand would be small and it would be expensive to renegotiate the rental fees. and finally, the majority of TV households in the US still don't have broadband connected TVs. so, physical media rental will still be a staple for some time.


RE: Yes, but...
By El Soze on 11/19/2010 9:23:36 AM , Rating: 2
Yeah, physical media will be around for awhile.

And I will continue to use it as long as Blu-Ray is vastly superior in quality to streaming.


RE: Yes, but...
By dreddly on 11/18/2010 11:03:21 AM , Rating: 2
I do a 420km commute daily and I stream netflix into the audio of my car.

I regularly max out my 3G download cap, so there are some users that do use it. There just aren't enough of us. They better not end support for mobile or I will switch to hulu.


RE: Yes, but...
By ninjit on 11/18/10, Rating: -1
RE: Yes, but...
By supermitsuba on 11/18/2010 11:51:54 AM , Rating: 2
TO THE AUDIO . Nothing about the post said watching his phone while driving in traffic. That being said, I do listen to movies at work while im working. I think comedies are the only ones you can get away with JUST LISTENING TO .


RE: Yes, but...
By dreddly on 11/18/2010 11:13:40 PM , Rating: 2
Yeah snl and comedies work really well for audio streaming.

Contract work is what it is, you take the work where you can get it. I need something for the long commutes, streaming makes so much more sense that pmps.


RE: Yes, but...
By Blight AC on 11/18/2010 12:32:17 PM , Rating: 2
quote:
A mobile app that lets me easily search & bookmark things I'm interested in while I'm on the go would be beyond amazing.


m.netflix.com

Who needs an app when a web page does this exact thing. However, the only issue is I can't easily drag and drop to arrange my queue. Adding that would be awesome.

Also, Movies app by Flixster allows you to browse movies, view trailers and add them to your Netflix queue.. although, it's kinda clunky on the Netflix side, it also allows you to view and sort your Netflix queue, unfortunately, it doesn't show availability of the items in the sort menu. So I can't see if an item is on a wait or if it will be released shortly.


RE: Yes, but...
By El Soze on 11/19/2010 9:21:39 AM , Rating: 2
Thanks

I checked it out. It looks like it was made for blackberrys. Great for BB's, but not so awesome for touchscreens.

On my droid I go to the website and manage my queue from there. So I know it's doable, it's just slow and clunky. I'd rather have something that I can just pop open and find something quickly and then keep on my way.


RE: Yes, but...
By CZroe on 11/18/2010 9:14:28 PM , Rating: 2
I think it might affect their bottom line more than they think. You see, some people DO watch it, but they don't consider that because it didn't trigger an influx of new customers, but they might not realize just how much it is helping retain customers. For example, my sister/roommate has wanted to cancel our Netflix account for the last few months but I wouldn't let her because I'm getting so much use out of it on my phone. :)


In other news...
By OUits on 11/18/2010 3:44:11 PM , Rating: 1
...competition enhances customer offerings, does little to boost business' bottom lines.

Glad Netflix understands the underpinnings of capitalism, even if they had to learn it from their own self case-study.




RE: In other news...
By osalcido on 11/20/2010 10:26:58 AM , Rating: 2
What the hell are you talking about? What competition? And Bottom lines WERE boosted by the game console apps.


RE: In other news...
By OUits on 11/20/2010 4:06:55 PM , Rating: 2
What the hell are you talking about? Every single major network has streaming episodes online from their websites. Hulu, iTunes, Zune, ESPN3. That's competition. Somebody mentioned above that these types of applications may not bring in customers, but it does work to retain customers. It's hard to measure that on the bottom line.


Network
By Motley on 11/18/2010 12:46:07 PM , Rating: 2
I tried it, and I do watch netflix videos when I run out of movies to watch from physical media. I would stream more (a LOT more), but the AT&T mobile network (3G) really blows in many parts of my commute on the metra trains going from the suburbs to Chicago. The network is even worse in many places in Chicago itself.

I think netflix has the right idea, they are just ahead of the game. Watch what happens in the next few years as 4G (and the inevitable 4.5G) networks start roll out and then there actually is enough bandwidth to use it while doing your daily commute (train, bus... airplanes?).

That aside, netflix being available on the iPhone 4 is what sold me the phone over the competition. I don't often use it because of all the stuttering (Wish the streaming buffer was MUCH MUCH larger, say like 1.5GB? ;p) but I'm really glad its there.




Yay!
By jharper12 on 11/18/2010 6:31:32 PM , Rating: 2
Combine this with Microsoft not really caring about expanding Silverlight to other platforms (like ANDROID!) as they promised they would... and basically I can expect to never stream Netflix over WiMax on my EVO. So... Android has a 25.5% market share and may not ever get streaming. Awesome. Before someone chimes in with "Linux" anything, Roku box folks... Roku box.




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