Comments on: An Explanation For Netflix Price Hike – Reed Hastings Wants To Force Hollywood’s Hand http://www.webtvwire.com/an-explanation-for-netflix-price-hike-reed-hastings-wants-to-force-hollywoods-hand/ The Business of Internet Television and Video Fri, 19 Oct 2012 08:46:31 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Jeroen van Bemmel http://www.webtvwire.com/an-explanation-for-netflix-price-hike-reed-hastings-wants-to-force-hollywoods-hand/comment-page-1/#comment-272228 Jeroen van Bemmel Sat, 23 Jul 2011 10:47:13 +0000 http://www.webtvwire.com/?p=26755#comment-272228 Like many industries, the movie industry is based on maintaining scarcity by controlling production and distribution of content that consumers want. Streaming lowers the barriers for distribution, and moves control away from the movie industry to NetFlix and others. This is why they want to stick to DVDs and Blurays: it is a distribution channel they control. This is also why they insist on strong DRM, and refuse to approve many Android devices on the grounds of "insufficient security". It would make distribution easier, and reduce the scarcity of access to content. Apple took over the music business by growing big enough to enforce removal of DRM, thereby gaining control over distribution, retail and playout of music. The studios won't allow NetFlix to become the Apple of the movie industry. Like many industries, the movie industry is based on maintaining scarcity by controlling production and distribution of content that consumers want. Streaming lowers the barriers for distribution, and moves control away from the movie industry to NetFlix and others. This is why they want to stick to DVDs and Blurays: it is a distribution channel they control. This is also why they insist on strong DRM, and refuse to approve many Android devices on the grounds of “insufficient security”. It would make distribution easier, and reduce the scarcity of access to content.

Apple took over the music business by growing big enough to enforce removal of DRM, thereby gaining control over distribution, retail and playout of music. The studios won’t allow NetFlix to become the Apple of the movie industry.

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