Cable VOD: More Ugliness For Blockbuster (BBI) and NetFlix (NFLX)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

Warner Brothers will begin national simultaneous release of its films on DVD and VOD. If the trial works, many of its films could show up on home televisions the same day they are available from NetFlix (NFLX) and Blockbuster (BBI). VOD revenue shares bring studios over 60% of the retail price. DVD’s yield closer to 15%. Hard to say which is better.

Of course, if these trials work as well as Warner believes they will, the other major studios are likely to join in. The economics are too good to resist.

NetFlix is quickly becoming last year’s movie delivery business model. And, Blockbuster’s model has not worked well since almost a decade ago. Perhaps that is why Netflix shares are down 20% over the last year and Blockbusters are off 50% over the last 24 months.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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