Wednesday, February 8, 2012

Netflix less about flicks, more about TV

By Ben Fritz and Joe Flint, Los Angeles Times

Like most fresh faces that arrive in Hollywood,Netflix wanted to be a movie star.

But now it's learning what many in Tinseltown have known for decades: Movies are sexy, but the real money is in television.

Launched in 1997 with a goal of eliminating the drive to the video store, Netflix Inc. became a hit with consumers and helped push the movie rental chainBlockbuster into bankruptcy. By charging customers a small monthly fee for unlimited DVDs by mail, then expanding into Internet streaming in 2007, it amassed almost 25 million subscribers in the U.S. and in 2011 had revenue of $3.2 billion.

For most of that time, Netflix was all about flicks. More than 80% of the discs it shipped and virtually all of its streaming content when that service began consisted of movies.

Not anymore. More than 60% of the 2 billion-plus hours of video streamed by Netflix subscribers during the fourth quarter of 2011 originated on the small screen.

To see the rest of the article please click on the following link:

http://www.chicagotribune.com/business/la-fi-ct-netflix-20120205,0,6552350.story