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Response in the Wall Street Journal to their article - Netflix Boss plots life after the DVD

by Administrator June 25. 2009 10:10

Could it include Deal Chime?

Hand held will become the #1 way consumers access the web in the next 12 months in the US, simply based on smart phone penetration and the fact that cell phones outnumber computers 3 to 1. On-demand video viewing is already available on phones.

As access and speed to the internet accelerates, the 700 MHZ spectrum just vacated by broadcast television and now available alone will exponentially increase rates on hand held and computers to speeds that will easily download movies and on-demand products at a moments notice.

Given that, Netflix really doesn't have a proposition to survive. The studios themselves will begin releasing first run features for premium prices on the internet.

The only model for Netflix to survive is to buy in to a product like Deal Chime or other geo-based coupon tools that know where consumers are and what they are purchasing. These tools have the CRM capabilities to deliver offers and even special purchase bundles that include movie downloads.

"Spend $200 at Safeway and view a first run movie tonight," will become a common offer.

As will straight downloads directly from Studios.

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