Monday, December 6, 2010

Re: [MISP] Understanding the Netflix Business Model


Truly fascinating article. I always wondered how Netflix could make money with sending out all those DVDs, and it looks like they barely do, and their streaming model is indeed headed for disaster unless they can get a much cheaper licensing rate - and why should they?

And I'm surprised this "doctrine" which allows them to mail DVDs isn't pulled out from under them:

For this mail-in business, Netflix did not need the approval of the studios. It simply buys DVDs, as does anyone else, from retailers such as Wal-Mart then mails them out to subscribers. What makes this form of rental  legal is the “first sale doctrine,” which holds that once a person buys a DVD, he can rent it out to others without the permission of the copyright holder.

In fact, when I sell my documentaries to libraries, they ask specifically for "library rights", meaning as I understand it that they can have showings -- I wonder how this relates to this "first sale doctrine," which seems more liberal / all-encompassing.

Thanks, Kenneth - interesting info. Here's the link in case it didn't come through for some the first time.

http://www.thewrap.com/movies/blog-post/netflix-streaming-its-way-towards-disaster-23019?page=0,0





On 12/6/2010 10:03 AM, Kenneth Knoll wrote:
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A lot of independent film makers really don't understand the Netflix business model, the link below is right on mark.

http://www.thewrap.com/movies/blog-post/netflix-streaming-its-way-towards-disaster-23019?page=0,0

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