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Next Big Wave for Studios ? Downloading or HD Format

Some key fundas from an interview with Reed Hastings, founder and CEO of Netflix.

The next big wave in studio and Netflix profits is not downloading. It’s high-definition DVD. The hardware industry wants it to succeed because they want to sell another 100 million high definition DVD players. The studio wants it to succeed because they want customers to buy another copy of The Godfather. Yes, there’s a high-def DVD format war coming. Yes, it will get resolved. So the big economic story in the next five years is not downloading, it’s high-definition DVD. What we see in downloading is that it will be a long, slow evolution that at some point, five to 10 years from now, will get really big.

Starbucks was not customer driven, it was vision driven. Howard Schultz went to Italy, saw the experience of what a coffee bar could be, then re-created that in America, despite many, many skeptics.

Now, did he listen to customer feedback about the necessity of low-fat and non-fat milk? Sure. Has he adapted in various ways after listening to customers? Sure. But he fundamentally had a vision that he could create this wonderful third place for people to gather, and that he could start the coffee culture throughout America.

Netflix is completely Web-based, our warehouse employees never interact with the customer. So what we focus instead on is to have the Web site be the most personalized in the world. If the Starbucks secret is you get a smile with your latte, ours is that the Web site adapts to an individual’s taste, so that of the 50,000 movies available, we can figure out which 50 we ought to put on the screen that would be relevant to the individual.

read complete interview >>>>

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