Comment Re:A win for capitalism! (Score 1) 325
I think that it is naive at best to consider Reed Hastings for doing this for 'greed' alone. Now that Netflix had established themselves as a leader in online video distribution and more than just a niche geek thing, he knew he wasn't going to get the cheap deals again from the studios like he might have before. Again, take for example the Dreamworks deal that happened recently. People are complaining about Netflix having good current streaming content (myself included), so they did what they thought would provide more value to the customer and went with this deal. However Dreamworks want 25 million per picture available on Netflix. And you know that other studios are going to want a sweetheart deal like that. This would inevitably mean the good deal that was Netflix was going to have to raise prices to be able to afford content.
Now I, like everyone else, can grumble about the price increase, but I feel that their hands were tied and can accept it. Netflix is trying to improve their product, but they knew that it was going to cost them more. Like any business, one way or another, these costs are passed onto the customer.
Now I, like everyone else, can grumble about the price increase, but I feel that their hands were tied and can accept it. Netflix is trying to improve their product, but they knew that it was going to cost them more. Like any business, one way or another, these costs are passed onto the customer.