`Netflix to delay launch of online download service'
Headine pretty much tells the whole story.
Not a huge surprise, given these two things:
- CEO Reed Hastings hinted earlier this month at the Web 2.0 conference that deals with Hollywood weren't exactly going swimmingly
- When Steve Jobs, himself a minor Hollywood mogul (as CEO of Pixar), launched the video iPod earlier this week, he had all of one movie studio lined up to supply content (Disney, which is supplying only TV shows - not movies)
Netflix's stock started sinking after Hastings made the announcement. TheStreet.com's Sandy Brown writes:
...CEO Reed Hastings said the company would delay online downloads indefinitely thanks to pushback from Hollywood content providers.
The studios are looking for ways to best monetize movie product in an environment in which piracy remains an ongoing concern, box-office results have been soft, and DVD sales have been inconsistent. Netflix will continue to pursue download technology, but Netflix plans will wait until Hollywood comes around and coughs up the content.