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Why the switch? Isn the Internet ready for the delivery of prime-time entertainment?

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Why the switch? Isn the Internet ready for the delivery of prime-time entertainment?

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It was to solve a chicken and egg problem. To do Internet delivery of movies, you need to convince the content owners to license their movies to you, and you need a large enough installed base that it’s economically interesting to them. But you need people to buy the platform, and you can’t get there without the movies. That pushed us into supporting DVDs initially. We think in the long term people will want to see high definition movies delivered electronically. In the near term, the vast majority of content in digital form is available on DVD. We also realized that DVD collection is a national pastime, and a lot of people have hundreds or thousands of DVDs. As soon as you get to 150 or 200 discs, it becomes a management problem in collecting, storing and finding what you want to watch. I was having that problem in my own home with 300 DVDs, and this was a problem that needed a solution.

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