Netflix and Video Games

While Netflix is not yet giving out(p) a loss leader of details on the greets associated with its cyclosis characterization service, the company has tending(p) out enough data for us to seduce a pretty effectual idea of its well outing have goty cost for the Xbox 360 and other devices. Heres what we do and wearyt know, and how it all breaks down. We know that the norm encryption regularize for video streamed to the Xbox 360 is well-nigh 2,000Kbps. That means one person watching a 2-hour movie would transfer roughly 1.8GB of data. For HD movies, the average encryption bitrate is around 3,200Kbps, and one user would transfer closely 3GB of data. establish on the high volume of movies Netflix is streaming individually month, it is turnting a very good rate in the market. I augur the company is paying, on average, some 3 cents per gigabyte delivered crosswise Limelight and Level 3, and it could potentially have a slimly get down rate. Based on the 3-cents-per -gigabyte assumption, it would cost Netflix astir(predicate) 6 cents to deliver one SD movie and 9 cents to deliver one HD movie. Those numbers would be active 25% put down if the length of the movie were 90 minutes quite of 2 hours. It would also be a little lower or higher(prenominal) depending on the exact bitrate, since some movies be streamed higher and some lower, and Netflix only has about 400 movies useable in HD.

Taking all that into consideration, the average cost to Netflix to stream to the Xbox 360 is about 5 cents per movie. Streaming to the PC is a lot cheaperabout half that costas the bitrates are a good deal lower. License to Stream B! ased on those numbers, Netflixs streaming whirl looks like it would save the company tons of money and achieve it much more profitable since it spends about 78 cents out and back for standard, presort, first-class mailing of its DVDs. just now the one job is that these streaming costs do not yet imply the licensing costs from the content owners. Its the costs associated with licensing the content that real make or break Netflixs streaming...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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