Netflix focusing on Internet-based service
For the first time, cable television subscriptions fell in the United States in the last two quarters, a trend some attribute to California-based Netflix.
“Right now, Netflix is a distribution platform, and has very little competition, but that’s changing,” said Warren N. Lieberfarb, a consultant who help develop the DVD while at Warner Brothers.
Changing from a mail-order company to a technology-based company revolutionizes the way millions of people watch television, and makes Netflix a competitive threat to movie studios, who sell it their content, the report said.
Netflix and its streaming technology arrived at a time when the film industry’s primary source of profits, the sale of DVD’s, is dropping, the report said.