Stupidity

by Mike Masnick


Filed Under:
hollywood, licensing, piracy, streaming

Companies:
netflix



Hollywood Still Trying To Kill The Golden Netflix Goose

from the incredible-mistake dept

Netflix has made its share of mistakes lately in dealing with its customers, but the company's biggest problem may be that Hollywood is so jealous of its success that it's now seeking to kill off the company's service by refusing to license movies and TV shows to Netflix. This isn't a surprise. We've seen similar stories over the past year or so, but the fact is that Hollywood is so short-sighted that it's trying to hold back the tide, and in the process, causing itself more harm. Netflix isn't "the enemy." It's found a way to offer a good service that many people want and use at a price point that makes sense.

Of course, it's that part that makes Hollywood freak out. They fear the "threat" of new business models that undercut their legacy deals, and that means they want Netflix to boost prices, put even more annoying limitations on use and greatly delay and limit selection—because they stupidly think this will drive more people to the more expensive offerings from the studios themselves. The're wrong. All this does is drive more people to piracy, while killing off one of the few services that was allowed (if briefly) to effectively compete with "piracy" by offering a better overall service.

The problem for Hollywood doesn't appear to be piracy. It looks like it's Hollywood's own fear of piracy that is leading it to make really short-sighted decisions.

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  1. identicon
    Anonymous Coward, 20 Apr 2012 @ 7:03am

    Quote:
    Confused? Imagine you're running a lemonade stand with your buddy Steve. Your mom says you have to share half your profits with your sister. But you don't wanna! So you pretend your buddy Steve is actually a corporation -- call him Steve, Inc -- charging you rent for the stand, the spoon, etc. "Dang, mom, I don't have any profits, I had to pay it all to Steve, Inc!" you say when you come home. But the money isn't gone. It's as good as yours -- in your best friend's pocket.

    Source: The Atlantic: How Hollywood Accounting Can Make a $450 Million Movie 'Unprofitable'

    In that case Netlfix selling lemonade would expose their accounting practices and reduce their overall money making schemes that is probably why they want so bad Netflix to pay more and more, studios don't care about the profitability of Netflix they care about what they can put on the spreadsheet and Netflix spreadsheet they can't write it for them and that appears to be the real problem.

    Studios want to kill the Netflix's of the world so they continue to rob others from the money they worked and were not fully paid for it, not their fair share anyways.

    The brilliant part is that they got the dumb writers, actors and everybody who works for them to defend them against Netflix LoL

    This may even be what happens in the music world and with so many stoned performers they get shafted and still defend that system LoL

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