Netflix Sticking to Subscription Strategy

It seems like an interesting game. All the major players in the home-video market are jockeying for position - trying to position themselves in the one location that will remain viable in the future.

Netflix is sticking to what they know best. Their subscription-based service will hopefully remain strong as their free streaming service gains popularity.

See what Netflix CEO Reed Hastings had to say on their decision to focus on subscriptions.

"We don't plan to enter the pay-per-view segment, where Apple, Amazon, Sony and others focus, or the ad-supported segment, where Hulu, YouTube and others compete," Hastings said during the company's second-quarter earnings call. "Both of those segments will likely be substantial, but our subscription segment will also be large and will provide Netflix plenty of room for growth."

The Hollywood Reporter added that Hastings predicted that the firm's free streaming offers would strengthen its appeal with subscribers. And he projected that Netflix's core DVD-by-mail segment would continue expanding for five to 10 years even as the DVD business slows down.

Not sure if sticking to one movie pipeline is a good idea, but for subscription holders, the vote of confidence is a good thing. -Leslie Shapiro

The Hollywood Reporter

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