Even Smarter

On why Netflix streaming is a lousy service for customers and the algorithms are dumbed down.

I always thought the studios could make their own Netflix streaming service if it ever became valuable enough to do so.  But they have an even smarter policy: let Netflix make them money.

What’s more, the studios can watch the Netflix share price as easily as anybody else, and when they see it ending 2013 at $360 a share, valuing the company at well over $20 billion, that’s their sign to start raising rates sharply during the next round of negotiations. Which in turn helps explain why Netflix is losing so many great movies.

I still get the DVDs.