Movie Streaming Celebrates a Landmark

Pop the bubbly. Streaming has won.

On Oct. 20th, 2010, Netflix announced that users of their service will watch more movies and TV shows streamed online than they will on DVD during the current (fourth) quarter. Even though streaming will overtake DVDs before the end of 2010, Netflix has no immediate plans to shut down their network of DVD distribution centers. These regional mailing centers (warehouses that ship and receive the iconic little red envelopes) represent a big expense for Netflix. But regional distribution centers are also the key to the rapid delivery of DVDs in the mail - the legacy business that built the brand back in the olden days when the business was founded (circa 1997).

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Thoughts from a film producer about making and distributing films.