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Netflix spends less to offer streaming as compared to mailing movies

Sections: Business News, Content, Online Music/Video, Video, Video Providers, Web

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A little bit of useless, albeit interesting information has come available about Netflix and the cost of streaming movies as compared to mailing movies. It is less expansive to stream movies than it is to mail them. Granted, that alone may not be all that surprising for some, however that even applies to HD quality movies. According to details coming from Business Week, Netflix pays about 3 cents to stream a standard definition movie and about 5 cents for an HD movie. And that should give you a good idea as to why Netflix is pushing streaming so much. That also makes sense as to why those Wii and Playstation discs went out so quickly (and went out for free). The other nice part, which will hopefully lead studios to stop complaining and embrace movie streaming a little more is that some of that savings reportedly goes back to the studio. Now, given these numbers I can no longer feel like I am getting a great deal for Netflix, at that, my 9 dollar and some change monthly price seems more than fair.

Read [Business Week] and [HackingNetflix] Via [Gizmodo]

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