Netflix: Online streaming will replace traditional television in the future

By on April 25, 2013, 11:30 AM
netflix, streaming, television, original content, house of cards

Netflix recently outlined their vision for the future which, surprising to nobody, will see online streams completely replace traditional means of watching television. The company makes some compelling arguments in the 11-page document titled “Netflix Long Term View”, highlighting a number of factors they believe will lead to the demise of television as we know it today.

Increased adoption of Internet-equipped televisions will play a heavy role in sending the traditional television packing. Also, Netflix feels that online streaming services will be able to adopt 4K faster than traditional cable and satellite operators – provided the bandwidth is there, of course. What’s more, the fact that newer companies are able to innovate and improve faster than well-established media also says a lot about the future.

In the interim, Netflix is well aware that they can’t offer the same variety as cable providers or even iTunes. Instead, they are focused on providing an experience that caters to customers’ wants and needs. Specifically, they are thriving on the freedom of on-demand and the flexibility of being able to watch on any screen, anywhere at any time.

Naturally, this level of flexibility doesn’t come cheap. Netflix said they have to shell out more than $2 billion a year just for content licensing. Another $450 million annually is allotted to marketing efforts while more than $350 million is budgeted to enhancing their online service. Even original series like House of Cards is an expensive endeavor – costing $100 million to produce just for the first two seasons.




User Comments: 10

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Guest said:

Yes, Online streaming will replace traditional television in the future. And XM Satellite radio will replace traditional AM/FM radio in the future too right? Right?

Im going to start selling ketchup popsicles and tell people that EVERYONE will want these in the future! Ill be rich!

NTAPRO NTAPRO said:

My goodness that's a lot of money

cmbjive said:

That future is already now in my home. I got rid of satellite tv for the much cheaper Netflx and Hulu Plus offerings. That was two years ago. I rarely tune to broadcast TV outside of the every now and then free UFC fight. Ad free, watch anywhere, and good variety of television I like (anime, martial arts, drama) and the move appears to be all positive.

MilwaukeeMike said:

If the future of television is streaming, why do I need netflix? I don't have some interface into the TV shows I watch over the air... why do we need an interface to get them off the internet?

Couldn't we just make TVs connect to the internet directly and if we want to watch a show from CBS, then we stream it from CBS? If we want to watch something from the Discovery Channel, we stream it from them. Of course then every channel would have to be able to host streaming, and I don't really feel like paying 15 cable bills for $3 each every month for the 15 channels I want to have.

1 person liked this | Skidmarksdeluxe Skidmarksdeluxe said:

Is that so? I thought grainy black & white tv sets were still cutting edge.

NTAPRO NTAPRO said:

Maybe this will be motivation for people like comcast to lower the prices >_>

treetops treetops said:

Gl beating a free service, when smart phones have 100 gig monthly plans at a affordable rate this may become a reality, stream from your phone to your tv. Currently local tv is FREE. The internet\netflix is not.

1 person liked this | Guest said:

Sorry, but there is no way in hell Netflix will replace traditional TV's. Why? Two words: data caps!

m4a4 m4a4 said:

Not with how this unreliable and slow internet is evolving... or lack there of...

Timonius Timonius said:

Essentially what the 'torrenter' has been doing for years now. Data caps (and related physical infrastructure issues) won't be as much an issue once cable companies update their business models to fall in line with what the people really want.

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