Streaming ate the dinosaur

If you’re like me, Netflix has changed your movie watching career.  While the dvd-by-mail format was fun for a while, the new direction of the company is clearly the Instant Watch feature that is available on computers and video game systems.   Having hundreds of movies at my fingertips, ready to watch upon any whim, makes me giddy.  Ever since this service became available, I have taken full advantage of it and have watched movies that I would have never bothered ordering through the mail.  Now there’s some good news for all of us Instant Watch fans

Last year, Netflix spent $31 million on their Instant Watch programming (including contracting fees and server costs.)  Compare that to this year: in the first 6 months of 2010, Netflix spent $117 million on the program, and they just signed a new contract that is going to increase that cost by more than $200 million a year!

Netflix just finalized a deal with Paramount, MGM, and Lionsgate that will allow them to stream new movies from those studios within 90 days of the films first being available on Premium Pay channels.  As of September 1st, a large number of new movies are going to start showing up in your Instant Watch.  You can also bet that this is strong evidence of what direction the movie rental business is going, and I am 100% on board with it!