A lot of US debates on traffic shaping suddenly make sense.
Things I didn't know:
- Tons of media devices, from XBox to TVs, have a Netflix card now built in that let the devices stream movies
- Netflix uses data from customer DVD rental queues to prioritize movies to purchase for online streaming. It's basically Moneyball applied to movies: Netflix goes for the ones that did poorly in theatre, so streaming rights will be cheaper, but where Netflix expects high customer demand.
- $9 per month gets you unlimited streaming of 17,000 movies. If you don't already have a Netflix enabled device, their set-top player costs $80.
Closest NZ equivalent: the newly released TiVO box. You can either pay $200 upfront and then $30 per month on a 24-month contract, or pay $920 upfront. That gets you a TiVO box that'll let you stream old movies at $5 a pop or new(ish) releases for $7 each. If you're a Telecom subscriber, it at least doesn't count against your 20GB monthly data allowance ($60/mth) or your 40GB limit ($80/mth). All of that's in $NZ, so multiply by $0.74 to get the current $US equivalent.
Tyler Cowen warned me that New Zealand would teach me the importance of fixed costs. Fixed cost here would have to be the streaming rights for New Zealand; otherwise, we could just jump onto the Netflix service, albeit at a much higher price to account for capacity issues on the
I'm going to go weep off in the corner for a while.