# Netflix Movie Streaming vs. DVD Only **URL:** \ **Category:** Cafe Society\ **Created:** [September 27, 2017, 6:20pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449 "2017-09-27T18:20:10Z")\ **Posts on this page:** 14\ **Page:** 1
**Author:** ![dolphinboy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dolphinboy/32/330_2.png) [@dolphinboy](https://boards.straightdope.com/u/dolphinboy)\ **Post date:** [September 27, 2017, 6:20pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/1 "2017-09-27T18:20:10Z")
I have a Netflix subscription that I am generally happy with it, but recently I found that many of the films I want to watch are either not available, which I understand, or only available on DVD and not for streaming, which I don’t really understand. I assumed it was because the content license holder didn’t want their movie streamed for some reason, but now I’m wondering if Netflix is making that decision in order to keep their mail order business going. Disk storage and network bandwidth is so cheap these days I don’t think that’s an issue. So why, in 2017 are so many titles on Netflix still DVD only? Is there another provider out there I should be considering instead of Netflix? ---
**Author:** ![PastTense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pasttense/32/14550_2.png) [@PastTense](https://boards.straightdope.com/u/PastTense)\ **Post date:** [September 27, 2017, 6:38pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/2 "2017-09-27T18:38:55Z")
Any company can buy physical copies of DVDs so Netflix does. But streaming would massively cut the sale of DVDs so a movie company would want a high price before it makes such a deal. And often these deals are exclusive–so Netflix will buy some, Amazon others, Hulu others… So the movie industry works on a pattern: movies are first available at movie theaters, after a while with physical DVDs, still later with streaming and other options. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [September 27, 2017, 6:47pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/3 "2017-09-27T18:47:37Z")
> [@dolphinboy](#): > > I assumed it was because the content license holder didn’t want their movie streamed for some reason, but now I’m wondering if Netflix is making that decision in order to keep their mail order business going. Disk storage and network bandwidth is so cheap these days I don’t think that’s an issue. Netflix has made it clear that they don’t care about the DVD-by-mail service. They tried to sell or spin it off a few years ago, but then backed down in the face of consumer complaints. And more recently, as their streaming business was expensive and not particularly profitable, the DVD-by-mail service was still profitable, and thus subsidizing the streaming service. But there are much fewer subscribers to the DVD-by-mail service now. I think I read that it’s down to about three million customers. They’ve reduced costs, by using automation to handle as much of the processing as possible. ---
**Author:** ![ZipperJJ](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zipperjj/32/211_2.png) [@ZipperJJ](https://boards.straightdope.com/u/ZipperJJ)\ **Post date:** [September 27, 2017, 6:57pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/4 "2017-09-27T18:57:56Z")
Yeah I can’t imagine that Netflix is suppressing streaming titles by choice. I know of tons of people who checked out Netflix streaming for a minute then realized it’s not a utopia of Every Movie Ever then promptly dropped it. If Netflix were able to have streaming licenses for every movie they’ve got on DVD, they would drop the DVD option in a heartbeat and also have 10x the subscribers. I’m sure they are having to fight for every title they’ve already got up there to stream, and it costs them time and money. And their titles aren’t always that good. AND titles go out of license and drop off their service. That’s why they are putting so much money into their own content - put up stuff that makes people want to subscribe to watch, so they have SOME kind of draw, aside from their shitty movie selection. I don’t envy Netflix. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [September 27, 2017, 7:04pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/5 "2017-09-27T19:04:43Z")
At least Netflix eventually puts its original content on DVD and makes it available through the DVD-by-mail service. I don’t think Amazon does that, so I can’t watch their shows without subscribing. ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [September 27, 2017, 7:08pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/6 "2017-09-27T19:08:05Z")
DVDs can be leant without any payment to the producers other than buying the CD. Streaming requires negotiating streaming rights. Additional payment has to be negotiated. And these days, there are competitors for streaming rights (one of the reasons Netflix started original content was to not be dependent on these negotiations). The DVD market is shrinking because people find streaming more convenient and cheaper. ---
**Author:** ![dalej42](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@dalej42](https://boards.straightdope.com/u/dalej42)\ **Post date:** [September 27, 2017, 7:12pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/7 "2017-09-27T19:12:10Z")
There seem to be more pissing matches about streaming content, with everyone wanting their own streaming service. So, cutting the cord and relying on streaming is becoming as expensive as cable was since multiple services try to entice subscribers with content. Netflix DVD service used to be great, but they’ve reduced the turnaround so much and eliminated Saturday service. Original content annoys me, but I know I’m probably not in the majority about this. There’s just too much that I want to see and I just don’t have time for endless new content. ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [September 27, 2017, 7:45pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/8 "2017-09-27T19:45:21Z")
There was an article in the Times about Netflix. When they started they negotiated good deals (for them) with lots of content providers. The content providers felt ripped off when streaming took off, and either raised prices or did it on their own. I had quit streaming out of frustration at the poor choices, but came back when they launched MST3K. They seem to have more stuff now. But I’m quite a happy DVD customer, as I am watching a lot of old movies (like The Public Enemy) which will never be on streaming. I have noticed a slight slowdown, on the other hand they frequently send a third DVD though we have a two disk subscription. ---
**Author:** ![Jophiel](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jophiel/32/66_2.png) [@Jophiel](https://boards.straightdope.com/u/Jophiel)\ **Post date:** [September 27, 2017, 7:51pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/9 "2017-09-27T19:51:58Z")
> [@dolphinboy](#): > > I assumed it was because the content license holder didn’t want their movie streamed for some reason, but now I’m wondering if Netflix is making that decision in order to keep their mail order business going. Disk storage and network bandwidth is so cheap these days I don’t think that’s an issue. > > So why, in 2017 are so many titles on Netflix still DVD only? Is there another provider out there I should be considering instead of Netflix? When Netflix started its streaming service, it spent (in 2010) $180 million on licensing. In 2016, it’s estimated that it spent $12.3 _billion_ on licensing. When it started streaming, no one knew if it would work and there was no competition so licensing content was pretty cheap. Then it took off and studios began demanding more and more money and withholding the best content to stream their own services – NBC/Universal is owned by Comcast and Time Warner owns HBO and Charter Spectrum cable, each with their own paid streaming services. So Netflix has less and less premium content available to it and it all costs more and more to license. This is also a major factor in Netflix getting into original programming instead of relying on other people to provide it. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [September 27, 2017, 11:41pm UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/10 "2017-09-27T23:41:06Z")
> [@Jophiel](#): > > When Netflix started its streaming service, it spent (in 2010) $180 million on licensing. In 2016, it’s estimated that it spent $12.3 _billion_ on licensing. Except that $180 million it spent in 2010 was to license other people’s movies and shows while now the majority of the $12 billion they’re spending is to produce their own original content. Supposedly they have about 50 million subscribers worldwide, so if my math is correct, they’re spending the equivalent of twenty bucks per month per subscriber on content. In the US, at least, they charge eight to twelve bucks per month. So they’re already losing money. And then it’s gotta cost them a fortune to stream all of this data. I don’t know if they still do thing this way, but a few years ago, Amazon Web Services hosted their content and delivered it to customers, which is a little weird given that they’re competitors. ---
**Author:** ![Jophiel](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jophiel/32/66_2.png) [@Jophiel](https://boards.straightdope.com/u/Jophiel)\ **Post date:** [September 28, 2017, 3:46am UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/11 "2017-09-28T03:46:28Z")
> [@Dewey\_Finn](#): > > Except that $180 million it spent in 2010 was to license other people’s movies and shows while now the majority of the $12 billion they’re spending is to produce their own original content. About half according [to this article](https://www.cnbc.com/2016/10/17/netflixs-6-billion-content-budget-in-2017-makes-it-one-of-the-top-spenders.html) which pins original content at $6bil for 2016. Still, $180 million in 2010 to $6 billion in 2016 is a hell of a jump. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [September 28, 2017, 4:03am UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/12 "2017-09-28T04:03:11Z")
Googling, that twelve billion dollar number is what they call their “streaming content obligation”. As I understand how they’re using the phrase, this includes commitments beyond the current fiscal year. In other words, it includes what they’ve promised to spend in coming fiscal years on content. ---
**Author:** ![Jophiel](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jophiel/32/66_2.png) [@Jophiel](https://boards.straightdope.com/u/Jophiel)\ **Post date:** [September 28, 2017, 5:17am UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/13 "2017-09-28T05:17:51Z")
$6.2b due in under a year, $6.7b due in 1-3 years, $1.3b due in 3+ years per their 2016 annual report. Also: > [@](#): > > As of December 31, 2016, streaming content obligations were comprised of $3.6 billion included in “Current content liabilities” and $2.9 billion of “Non-current content liabilities” on the Consolidated Balance Sheets and $8.0 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not then meet the criteria for recognition. > Streaming content obligations increased $3.6 billion from $10.9 billion as of December 31, 2015 to $14.5 billion as of December 31, 2016 primarily due to multi-year commitments associated with the continued expansion of our exclusive and original programming. > Streaming content obligations include amounts related to the acquisition, licensing and production of streaming content. An obligation for the production of content includes non-cancelable commitments under creative talent and employment agreements. An obligation for the acquisition and licensing of content is incurred at the time we enter into an agreement to obtain future titles. Once a title becomes available, a content liability is recorded on the Consolidated Balance Sheets. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. Traditional film output deals, like the U.S. output deal with Disney, or certain TV series license agreements where the number of seasons to be aired is unknown, are examples of these types of agreements. The contractual obligations table above does not include any estimated obligation for the unknown future titles, payment for which could range from less than one year to more than five years. However, these unknown obligations are expected to be significant and we believe could include approximately $3 billion to $5 billion over the next three years, with the payments for the vast majority of such amounts expected to occur after the next twelve months. The foregoing range is based on considerable > management judgments and the actual amounts may differ. Once we know the title that we will receive and the license fees, we include the amount in the contractual obligations table above. ---
**Author:** ![Shalmanese](https://avatars.discourse-cdn.com/v4/letter/s/45deac/32.png) [@Shalmanese](https://boards.straightdope.com/u/Shalmanese)\ **Post date:** [September 28, 2017, 7:04am UTC](https://boards.straightdope.com/t/netflix-movie-streaming-vs-dvd-only/797449/14 "2017-09-28T07:04:56Z")
Physical objects fall under the first sale doctrine which means that once Netflix acquires a physical DVD, the original seller of that DVD only has limited rights on controlling what Netflix is able to do with it. Digital objects aren’t typically sold, they’re licensed with an accompanying terms of service. If you spend money on a physical copy of 1984, you can do what you want with it, including lend/sell it to whomever you want. If you spend money on the kindle version of 1984, you’ve merely rented out the right to use it and Amazon can arbitrarily wipe it from your machine if they so choose without compensating you. There have been a couple of companies that have tried to get around this physical/digital loophole by doing the following: 1. You own a computer that resides at the company’s data center 2. When you want to watch a movie, you “buy” the DVD of the movie and it gets inserted in the computer you own. 3. You then stream a copy of the movie from the DVD you own on the computer you own to another computer you own. 4. When you’re done with the movie, you “sell” the DVD back to the company for a few bucks less than you bought it for. Voila, you have a netflix like service that allows you to stream any movie in existence. The courts were unimpressed with this loophole and shut those companies down which is why we have this patchwork of streaming services we do now.