Streaming costs Netflix 10 times less than mailing a DVD

Netflix StreamingNetflix streaming is just about the greatest thing around (yeah, it’s better than Hulu) for video content. The interface is clean, easy to use, and the selection is good enough for my $10 a month. Streaming has also saved Netflix a whole lot of money.

To stream a movie in HD costs Netflix around 5 cents, 3 cents for standard def. That’s it. Now granted, that doesn’t account for licensing and all that, but it sure as hell beats the pants off sending things through the mail. That cost could even go down as more competitors enter the back-end market responsible for supporting the Netflix streaming system.

My question – why aren’t more things available for streaming? If it’s so cheap, that extra revenue could be kicked back in part to studios for freeing up more streaming content. Everyone wins.

Source: Business Week