Economics @ ITT

Netflix’ Days of Monopoly Price Premiums Are Over

Posted in economics by ittecon on September 19, 2011

“Netflix was basically a monopoly in the streaming business until about six months ago, and the effect was that content providers were underpricing their products,” said Charlie Wolf, an analyst who covers the company at Needham. On February 22nd, Amazon announced that it would stream 5,000 movies and television shows at no additional charge to customers who signed up for a Prime membership, which costs $79 a year.

via NFLX Tumbles On Qwikster Announcement; Are Netflixs Best Days Behind It?.

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