OPINION: Biz building
By Paul Sweeting -- Video Business, 1/30/2009 12:57:00 PM
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At a time when falling DVD sales may force studios to take significant write-downs on movies, and media companies are slashing jobs by the thousands, it was a welcome sight to see consumers still flocking to a movie service.
But there were a few numbers in the Netflix results that ought to attract some scrutiny from the nubbly pencil types at the studios.
Much of Netflix’s surge in subscribers in the quarter is attributable to the growing popularity of its streaming service.
“It's very clear that streaming is energizing our growth,” CEO Reed Hastings said on a conference call with analysts.
And much of that energy is coming from Netflix’s deals with device makers such as Microsoft, LG, Samsung and TiVo.
Wedbush Morgan analyst Michael Pachter estimates that the Xbox 360 alone delivered 200,000 new subscribers to Netflix in just the last half of Q4.
Hastings said on the call, “You can expect a broader range of partners over the year,” emphasizing that Netflix is concentrating its efforts on partners who can deliver the highest device market share.Click here to read the rest of the column on ContentAgenda.
