A recent study by the University of Hong Kong seems to confirm the existence of a relationship in the reduction of physical content with respect to Netflix.

The arrival of Netflix is ​​not only a blessing for fans of series and movies with a great and updated catalog daily, but it is a big problem for the industry of selling movies and series in physical format. It is logical, since why are you going to spend € 20 on a movie or € 50-100 on a series, if for about € 15 a month I can have all the content at my fingertips with just a single command or with a simple click.

Until now, the fall from grace of legal physical content was attributed to illegal downloads, but a recent study developed by the University of Hong Kong has published in the study that the movie that is released on Netflix directly affects its version of Physical format. For the study, the behavior of the content of the Epix distributor has been used, which distributes content from the important studios Lionsgate and Paramount Pictures, which left Netflix to go to Hulu in 2015.

According to the report, the company's DVD sales grew 25%, driven by the lower penetration of Hulu as a digital content service, compared to Netflix, a titan in this field. In addition, this study ensures that companies must choose to launch content in physical format before launching it on platforms such as Netflix.

Netflix is ​​a great service that ends the mediation of physical platforms. From the sofa you have access to a large amount of content that you would otherwise have to search in stores, at a large cost per unit. Here everything is at your fingertips and there are a large number of filters, to adjust searches according to our tastes. There is also talk about the profit margins obtained by Netflix licenses, against the better margins offered by sales in physical formats, but that is not confirmed in the study.

This confirms what we already knew, which is that Netflix directly affects the sale of physical content. It is logical, but on the other hand, sales of physical content are less and less in demand and access to digital content is the future. It is true that the profit margin is lower, but if it is reproduced many more times, the benefits can be equal to or greater than the physical contents.

Source: TorrentFreak