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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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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.

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