Netflix has announced that they made a ton of money this quarter, sure. But they also let it be known that for the first time in the company’s history, year over year DVD shipments had actually declined. Which is pretty much exactly what they want to happen.
All those past shipping costs add up compared to streaming content, the bread and butter of Netflix present and future. The downside? The company’s having to unload truckloads of cash to licence those streaming shows, as studios try to choke the life out of it.
So for those of you filling out your scorecards manually: DVDs are dying, Netflix is thriving in the face of adversity, and studios don’t want you to have nice things. [WSJ]