The economics of Netflix’s “Watch Now”

Posted on Tuesday 20 November 2007

TechConsumer has an interesting cost comparison of using Netflix to catch up on “Heroes.” His conclusion: If you watch a lot of episodes in a short period, Netflix is more economical than Amazon’s Unbox or iTunes.

Initially (first day or two) my wife and I just watched our five hours that comes in our monthly plan; we got hooked though. When we started watching Heroes there had been 28 episodes, and now we wanted to watch them all. At Apple’s iTunes or Amazon’s Unbox, each episode would have cost us $2, or $56 total to own lease the video. With episodes only being 43 minutes though, it only costs $0.72/episode on Netflix. So we just upgraded our plan by $12, and got caught up to the current episode in about a week (yeah, we didn’t do much else that week).

Moveover, Netflix’s “Watch Now” certainly seems to offer more selection at a better price than most pay-per-view or video-on-demand service. They have 5,000 titles available for watch now and 90,000 titles on disc for postal delivery.

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