Netflix lowers costs for streaming movies (for itself)


Streaming video over the internet costs mucho dinero. There’s so much data heading to your screen that it’s hard not to run up costs. In 2009, Netflix spent around $100 million on streaming content. That comes out to five cents for every two hours of standard-def video. And that was before they had a bunch of high-def films!

So I’m sure we’ll all be pleased to hear that this year, estimates place Netflix’s internet spending at “only” around $50 million, due to falling bandwith costs. The cost of 2.5 cents per two hours is really going to make a difference, even with increasing membership. Sure, postage costs for old-fashioned discs have gone up to 78 cents round-trip, but with more people hopping on board just for streaming, I’m sure it’s offset somewhere in there.

Of course, don’t expect these savings to trickle down to you, the consumer! Cheaper operating costs are just good news for the guys at Netflix. So don’t wait for any discounts, unless you were hit by the streaming outage the other night, in which case complaining this week might get you a bit of a discount, if reports are to be believed. That’s almost as good, right?

[via Home Media Magazine]