Netflix getting content license for its online movie distributionOctober 1st, 2009 - 8:56 pm ICT by Aishwarya Bhatt
California, Oct 1 (THAINDIAN NEWS) The pioneers in the DVD rental business Netflix, announced today that they are in a deal with Stars Entertainment LLC that will get them great video content for their online streaming service license.
Netflix main business is from DVD renting, but as time and technology change so Netfix is also branching out in greener and newer pastures. The renting business sales have dropped from $15.9 billion last year to $14.5 billion. Even though the ironical part is that Netflix rents half a billion movies per year and this number is steadily rising, yet the profits are down.
The IAC/InterActiveCorp CEO and self-professed opportunist, rather impatiently told CBS News’ Katie Couric earlier this week that the day is coming when people will regularly pay for content. As he has before, he trotted out the example of Apple, which has managed turn, its iTunes store into a “multimillion-dollar business” based on the once-heretical notion of asking people to spend money on digital music and video.
In due time, he said, content companies will be unburdened of “this mythology of ‘the Internet is free,’” which was perpetrated by a seemingly prehistoric tribe that cared only about bandwidth and availability.
“The Internet, you have to remember, was started by tech people,” Diller said.
Tags: business sales, cbs news, content companies, content license, digital music, diller, due time, iac interactivecorp, interactivecorp, katie couric, multimillion dollar business, netfix, opportunist, prehistoric tribe, rental business, rents, stars entertainment, streaming service, technology change, video content