is still considered an online success story based on several metrics, including its huge subscriber base and its recent quarterly profit statements. However, while the subscription model has helped Netflix profit from DVD rentals, a fumbled shift to high-def media and newer distribution technologies could not only threaten revenue growth, but also increase churn. High-def content and video-on-demand services are on their way to reaching critical mass, and if Netflix wants to maintain its position in the marketplace, its business model must evolve to harness these trends.
Related news, commentary, and predictions:
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- Prediction: Microsoft will make an acquisition offer to Netflix by June 30th
- Analysis: The home server in your pocket
- Analysis: Microsoft stays mum on Blu-ray Disc support
- News: Netflix surveys Xbox, PS3 owners about movie downloads
- News: Toshiba abandons HD DVD
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