Netflix Poland VPN

Netflix has used the long tail to its advantage, crafting a business model that creates close ties with film studios.  Studios love Netflix because they earn a percentage of the subscription revenue for every disk sent out to a Netflix customer.  In exchange, Netflix gets to buy the studio's DVDs at cost.  The movie business is characterized by large fixed costs up front.  Studio marketing budgets are concentrated on films when they first appear in theaters, and when they're first offered on DVD.  After that, studios are done promoting a film, focusing instead on its most current titles.  But Netflix is able to find an audience for a film without the studios spending a dime on additional marketing.  Since so many of the titles viewed on Netflix are in the long tail, revenue sharing is Netflix Poland VPN  all gravy for the studios – additional income they'd otherwise likely never get.It's a win-win for both ends of the supply chain. These supplier partnerships grant Netflix a sort of soft bargaining power that's distinctly opposite the strong-arm price bullying that giants like Wal-Mart are often accused of.The VCR, the Real "Killer App"?Netflixʼs coziness with movie studios is particularly noteworthy, given that the film industry has often viewed new technologies with a suspicion bordering on paranoia.  In one of the most notorious incidents, Jack Valenti, the former head of the Motion Picture Association of American (MPAA) once lobbied the U.S. Congress to limit the sale of home video recorders, claiming "the VCR is to the American film producer and the American public as the Boston strangler is to the woman home alone"7.  Not only was the statement over the top, Jack couldnʼt have been more wrong.  Revenue from the sale of VCR tapes would eventually surpass the take from theater boxoffices, and today, home video brings in about two times box office earnings.