Looking to the future: Netflix and digital delivery
Summary.... This report looks into the economics of digital delivery and Netflix transition to hybrid physical/digital business. Generating little revenue in its own right, Watch Instantly is a cost centre for Netflix, due to content licensing and delivery costs. The service is acting as a very effective land-grab for Netflix in the digital space, demonstrating the company's impressive agility and maintaining relevancy of the Netflix brand to a rapidly evolving home entertainment consumer.