The simple way Bitcoin could help Netflix and it's users - Pay per view

02/02/2014 - 00:00

In January 2014, right after announced their Bitcoin integration on the website, rumors started floating around that Netflix would be the next big company adding Bitcoin as a payment option. This rumor was powered by a tweet from Max Keiser: I broke story that Zynga will take BTC several months ago. Here's the next big story. Netfllix is thinking about going BTC. — Max Keiser (@maxkeiser) January 4, 2014
This does seem a very logic option, as Bitcoin can completely change Netflix’s revenue model. How? The answer is simple: pay per view.

The main advantage of Bitcoin are its worldwide usage, sending money in seconds, and no transaction fee’s. Those 3 factors can make PPV a reality for Netflix. Currently netflix bills you $8 per month, which gives you complete access to all their movies, series & tv shows. However, sometimes you don’t even watch 2 or 3 movies in a month due to being busy or anything else that takes up your time. At that moment the pay per view model comes in handy.

It works as follows: You do not pay a standard subscription fee, but instead only pay for the movies that you watch. They could make an episode of The Simpsons $0.10, and a complete movie $0.25. When you want to watch a movie, a screen pops up with a Bitcoin address. You pay the $0.25 (0,0002978 BTC) and start watching the Movie. The currency can be used worldwide, and the sending process can be completed within seconds.

Now you might ask yourself: Why wouldn’t this system work with just a Credit Card? The answer is: Transaction fee’s. The average Credit Card payment processing fee is roughly 1.60% plus a $0.10 standard fee. This means that when a user want’s to pay for a movie for $0.25, Netflix will lose 1.60% + $0.10 of that amount to the Credit Card processing company. This is the only thing that makes the pay per view model unprofitable at this moment, and Bitcoin is about to change that!