Netflix Increasingly Focuses on Streaming Video Instead of DVDs

Thirteen years after its launch, Netflix has effectively shut down Blockbuster, who filed for Chapter 11 Bankruptcy in September of 2010. Only three years after Netflix began offering streaming video, it has taken over its business. “By every measure we are now primarily a streaming company that also offers DVD-by-mail. DVD-by-mail shipments are still growing, but streaming for us is much larger and growing much faster," says CEO Reed Hastings.

What other proof do we need that web video is indeed the way of the future? Netflix allows users to watch movies and television not only on their laptops but also on their TV’s. Sony Playstation 3, Wii, Xbox 360, Google TV and Apple TV are examples of products dedicated to bringing Internet to your home entertainment system. With it, you now have access to thousands of titles instantly.

The reason for their rapid growth is obvious. Why would people go to a store if they could accomplish the same goal without leaving their house? Netflix is happy to oblige these customers, as the company spends $700 million a year on postage alone. As the market increasingly demands streamed video, the only victim appears to be the United States Post Office. If they increase rates, as they are currently proposing to the Postal Regulatory Commission, Netflix will get slammed with $50 million more in postage fees. If this occurs, and it looks like it will, it is a sure thing that Netflix will focus its business primarily on the growing streaming video market.

Web video is the future and the now. Call the Fairfax Video Studio at 877.477.STUDIO to talk to us about creating professional web video for your site.