Netflix – The Future Is Streaming – Should We Dump Our DVD & Blu-ray Players?

In a recent article, we’re told that Netflix is preparing for the day when DVD and Blu-ray rentals will be replaced by video streaming; this could be a look at the future and how we entertain ourselves in our home. In fact, Netflix believes that the DVD and Blu-ray rental business will begin its decline in 2013. It is placing its eggs in the video streaming of movies basket, which it believes will be the future of movie rentals.

The article goes on to state that:

According to the Netflix Business Opportunity slideshow, the company sees streaming as a “huge potential market,” pointing to the 100 million households that have pay-TV subscriptions in the U.S. Netflix had 14 million subscribers by the end of the first quarter, a number it expects will rise to 17 million by the end of the year. And it believes that as both it and the Internet improve, it can get boost that figure even more.

“To have profitable growth in such a huge market, you find a segment in which you can gain and maintain leadership,” the slideshow says. “Netflix [sic] segment is consumer-paid streaming of movies and TV shows.”

With greater adoption of streaming video, Netflix says it can put more money toward building the catalog of content available through its Watch Instantly service. Its cost of goods sold in 2009 was $1.4 billion, of which more than half was spent on postage and handling. But as the company’s DVD-by-mail business peaks — which it expects to happen around 2013 — Netflix will be able to spend more money on licensing content. By 2020, if it can continue to aggressively grow its subscriber base, it expects to be one of the world’s largest licensors of movies and TV shows.

I can see how this could happen. I have been with Netflix for about five years and enjoy the service it provides. However, there have been times that I have received damaged DVDs that have not played correctly. Though Netflix has been quick to replace the broken disc, the fact remains that I had to wait for a replacement to arrive. With streaming you do not have this problem. I stream from my laptop to my plasma TV without any problems. The only issue is that the streamed films are not 1080P as of yet.

What do you think? Will streaming replace DVD and Blu-ray disks?

Comments welcome.

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I have been writing for LockerGnome since relocating to Missouri seven years ago, where I continue to be a technology enthusiast who enjoys playing with the newest and latest gadgets.

  • Dick

    Streaming sounds cool until you stop to think, where does my source material come from? Has anybody been paying attention to the track record of online entertainment sources?

  • http://www.twitter.com/zeph1 Ron

    I have to say no. People still have bandwidth limits on their internet connections and there’s a chance they’ll end up going over those limits if everyone replaces DVDs and such with streaming services such as Netflix. And, surprisingly, there are still a lot of people with dial-up connections.

    It may still be a few years (or more) until this can become a reality. But, as of now, it’s sort of unrealistic due to the prices of high-speed being unaffordable for millions and a business-class high speed connection for a family of movie-fans is even more likely outside of their income range.

  • Lissa

    I have tried Netflix streaming video through my Wii and I thought it was pretty awesome. You can start and stop multiple shows, and when you go back to one you had started watching it will start from where you left off. I think that it is a very great alternative to renting movies but not every movie is available to watch instantly so I will still be renting and buying my movies. Plus I like to actually own my favorite movies so I do not think that, for me, streaming videos will replace my DVD player.

  • Ryan

    1. Netflix streaming as it exists now is mostly crap. The programming that is, not the idea.

    2. New movies are almost always only available on Blu Ray or DVD, which Netflix has a limited on hand supply of.

    3. Once you work your way through the queue, they have to ship it to you which can take 2 days, when you ship it back, it takes another 2 days.

    4. If they decide you’re actually using the subscription you paid for (i.e. promptly returning movies so you can bust through your queue as fast as possible), they start imposing extra delays on shipping you your discs.

    5. The production of discs, the shipping of discs back and forth, and the facilities built to warehouse these discs not only cost a fortune, but they’re bad for the environment.

    Is it Netflix’s fault that they can’t do the right thing and post first run movies on their streaming service? No. It’s the peckerheads at the MAFIAA who are deluded and still think it’s imposible to rip a Blu Ray disc.
    :)

    I canceled my Netflix. The only reason I had it a full month was because there’s no partial refunds and your subscription ends the minute you click the button.

  • jim

    No, I hope dvds don’t disappear. I have a 50 inch. flat screen tv and have been a netflix customer for several years. Regular dvds and blu rays are much better playing on those big screen. Yes I stream a few times from netflix when I really want to watch a certain movie that night and if it is ready for streaming. Now it looks like they have changed there sight to all most all discs are ready for streaming. I all so like buying certain movies in Blu Ray discs for collection and I love those to watch over again. You have to remember there are a lot of other web sights that are now streaming movies to people. Netflix is not the only player in town anymore. Your blu ray discs and the blu ray players are getting cheaper now. So I don’t think the game is over yet. Not even in a few years.