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Netflix Real Estate to Vastly Improve When It Gets Hunger Games This Fall!

One of the things that people say is a Netflix negative is a large selection of new blockbuster releases. That’s about to change due to the combination of an exclusive streaming license agreement it has with cable channel Epix, which is a joint venture between Viacom, MGM and Lionsgate, which backed the popular blockbuster The Hunger Games. Also expected to join the Netflix lineup is The Avengers in 2013. Another popular series available on Netflix right now is The Walking Dead, which boasted 9 million viewers for the second season finale. AMC should be releasing the 2nd season to Netflix most likely this summer. Anders Bylund says “If Hunger Games and The Walking Dead don’t motivate a significant influx of new Netflix subscribers in the second half of 2012, I’ll buy a hat just so I can eat it.” We concur, Anders!


Not everyone is happy about Neflix – particularly cable and satellite TV providers who bundle hundreds of channels into a highly priced but convenient package for subscribers. Yesterday, Dish Nework said that it decided to drop AMC and a bunch of other channels from their lineup because streaming services like Netflix are devaluing them by making them available on multiple outlets. Dish Chairman & CEO Charles Ergen says “Those particular channels are also available to our customers through a variety of other sources, like iTunes, Amazon and Netflix.”

It’s scarcity that makes programming more expensive to consumers, but there comes a time when scarcity backfires on the entity making it difficult and expensive for consumers to access the content. It’s actually laughable that Ergen makes this statement with a straight face after The Walking Dead’s 2nd season finale. It’s my guess that Dish is trying to scare AMC into eliminating it’s agreement with online content providers in order to restore precious scarcity, so that they don’t begin to lose their paying subscribers to these streaming services. Additionally, because AMC programming has done so well, they increased their costs to Dish and other satellite and cable companies by 35 cents a subscriber. AMC only provides it’s former season’s libraries to Netflix, but new programming is made available to bundled Pay TV subscription providers.

Ergren is correct when he notes that his customers are resistant to paying more money for their subscription. Market forces are screaming for a la carte choices instead of these mega bundles where we are forced to pay an unaffordable monthly fee for a modest amount of programming. Both entertainment companies and satellite/cable TV companies are nervous about their fragile business models right now. It’s my belief that the reason Hulu.com may resort to an authentication requirement is because they are being pressured by their collective owners, despite their announcement that they made millions in advertising fees. By making anyone wishing to stream on it’s free platform prove they are already cable or satellite TV subscribers, they are in essence trying to force consumers to *not* cut the cord.

Christophor Rick of www.reelseo.com noted that they may gain the attention of the U.S. Government in possible ant-trust issues because of what looks like bullying tactics to force people to refrain from cutting the cord. But even if the government says “hey, they can do whatever they want,” it’s my guess that they will lose significant advertising revenues, and they will probably anger more people into cutting the cord when they realize the manipulation tactics. Rick believes that’s why Providence Equity Partners sold their shares to the other owners.


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Rick also pointed out that much of the content on Hulu is free over-the-air in most markets. There could be a whole lot more antenna sales going on, and if pay TV makes it to streaming like with services Aereo or Skitter TV, it will likely be the straw that breaks the camels, or the business model’s, back.

Also, many entertainment companies are keenly aware that it is the popularity of streaming services like Netflix that are actually boosting the ratings of shows that people might not otherwise tune into. By being able to watch old libraries of content, viewers are developing an appetite for newly released content. Of course, then we also develop a group of cord cutters who are willing to wait for the next season’s library, and that’s precisely what has cable and satellite providers nervous.

To learn more about Netflix subscription pros and cons, click here.
Originally published on www.streaming-411.com

Sources:  http://www.dailyfinance.com/2012/03/22/netflixs-strategy-plays-out-if-you-build-it-they-w/?source=edddlftxt0860001

http://adage.com/article/mediaworks/dish-netflix-devalued-amc/234606/

http://www.reelseo.com/hulu-authentication-bad/




Everyone Put Down Your Weapons! Netflix PAC is Not Your Enemy

The headquarters of Netflix in Los Gatos.

The headquarters of Netflix in Los Gatos. (Photo credit: Wikipedia)

Collectively, Americans are getting fed up with the political process, and one of the biggest examples of corruption includes the billions spent on lobby platforms to buy politicians’ allegiance, often from the viewpoint of average people in favor of corporate greed.  So when word got out through hacktivist group Anonymous that Netflix was starting a PAC, and that we should all take up arms, or rotten tomatoes, or cancel our subscriptions en masse, of course social media exploded and all sorts of negative emotions flared up, turning people anti-Netflix overnight.

But let’s all take a deep breath here and examine some points.  We can start with a word from Netflix:

“PACs are commonplace for companies that lead a big, growing market and Netflix is no exception.  Our PAC is a way for our employees to support candidates that understand our business and technology.  It was not set up for the purpose of supporting SOPA or PIPA.  Instead, Netflix has engaged on other issues including network neutrality, bandwidth caps, usage based billing and reforming the Video Privacy Protection Act.”

Okay, so what does all that mean.  Let’s go point by point.

  1. SOPA and PIPA no longer exist, and will not be resurrected.  When it was first being vetted, these bills had preliminary support from many sides, including big corporations, because they did not understand all of the issues.  But rest assured the majority of corporations changed their minds once they understood the flaws.  Simplistically, the bills say that stealing copyrighted content is illegal.  Most Americans would agree with that statement.  The problem with SOPA and PIPA was in who was getting stuck with the bill of policing the internet.  Under a SOPA regime, Google and other heavy hitters on the internet would be forced to be the internet police, and that would cost them billions of dollars, which would basically kill the free internet as we know it.  My article Why Any Future Anti-Piracy Legislation Must Not Regulate Search Engines provides a comprehensive argument for why we have to be very careful how we deal with copyright violations.
  2. Net Neutrality – again, this is a very multi-faceted issue, but basically there are two sides.  One side says the internet needs to be an unlimited resource to everyone for one low fee, with no restrictions placed on it.  On the other side of the issue are internet providers, who wish to charge the heaviest internet users a higher fee.  This is, of course, an extremely simplistic explanation, and only touches on one of the many facets.  But rest assured, usage-based billing and caps on internet hurt Netflix, not help.  So they are not trying to butter up the internet providers while sticking it to consumers.  That would essentially kill their business.  They want the internet to be able to handle as much streaming as they can serve up, and for a reasonable price.
  3. The reformation of the Video Privacy Protection Act – this one is more controversial, in my opinion, than points 1 and 2.  I believe Netflix wants to be able to provide Facebook apps that, when put into effect, will broadcast to all your Facebook friends what you’ve been watching on your Netflix account.  Blockbuster tried this a few years back, and was
    Image representing Facebook as depicted in Cru...

    Image via CrunchBase

    sued, citing the VPPA.  But really, Facebook  is a social network.  Many of us already share this type of stuff.  And we don’t need to integrate our Netflix account with our Facebook account if we don’t want to.  Now, if Netflix wants to share what I’ve been watching without my permission, that’s another story.  We definitely need to let this one play out before we decide to get puritanical with Netflix.

The bottom line . . . while the internet is a wonderful place where there is lots of information available, it also can do a lot of damage.  It’s very important to read things, even from what we consider highly credible authority sites, as conjecture until we hear all sides of a story.  Much of what we read on the internet is people’s opinion.  In fact, this article is my opinion, and I might be proven wrong in the overall scheme of things.  But I for one am tired of Netflix being the corporate whipping boy.  Now excuse me, I’m going to go stream something. :)

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Where Does Google Play Fit in the Streaming Services Landscape?

Image representing Google as depicted in Crunc...

Image via CrunchBase

Google, in it’s quest to become a major player in the digital content marketplace, as well as continuing to expand its reach through Google TV technology in a number of internet-connected devices, has just scored another victory.  The recently launched Google Play (formerly the Android Market) offers consumers much more choice in their entertainment quest.  It can be thought of as an entertainment shop for the Android operating system, just like what the Apple iTunes store is to iOS.

Integrated, One Stop Entertainment Shop

Just like the iTunes Store, Google Play has available an array of movies, TV shows, music, apps and games that integrate together with various Android devices.  Movies are available for rental, and the price points are similar to other VOD players in the industry, like Vudu, the iTunes Store and to a lesser degree, the Zune Marketplace, with content available in standard and high definition.  Google executives are engaging in discussions with the entertainment industry execs into allowing Google Play users to purchase digital content, which would make it a seriously powerful retailer if you consider the user adoption of Android.  Insiders say this may happen as early as this summer.

Google 的貼牌冰箱(Google refrigerator)

Google 的貼牌冰箱(Google refrigerator) (Photo credit: Aray Chen)

Google Play is also rumored to be working on upgrading features in it’s music area, including how users can organize their libraries, and improved song display features.

Google Play Not Yet in Netflix’s Rear View Mirror

Netflix and Hulu Plus need not fear Google Play or Apple iTunes as a threat to their customer base at this time.  This type of boutique, a la carte shopping tends to be a supplement to subscription streaming services with content that is newly released and not yet available through the all-you-can-eat buffet services.

Google & Paramount Sign Licensing Deal for 500 Movies

Just a few days ago, Google scored a deal with Paramount that will bring 500 new titles to both the Google Play store, as well as YouTube, to users in the United States and Canada.  Google’s movie rental library hovers around 9,000 right now.  This will give it a serious shot in the arm with titles like The godfather, Transformers, and Hugo.

Malik Ducard, Director of Content Partnerships at YouTube, noted “Paramount Pictures is one of the biggest movies studios on the planet.  We’re thrilled to bring nearly 500 of their films to movie fans in the US and Canada on YouTube and Google Play.”

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Netflix DVD.com Domain Purchase – Signalling Intent to Split Services?

Netflix

Netflix (Photo credit: adria.richards)

 

After it’s customer relations nightmare last fall when it announced it was splitting the streaming and DVD business into two entities, renaming the DVD business “Qwikster”, the industry and current subscribers alike are wondering about Netflix’s latest move in purchasing the domain DVD.com on March 30.  Without a doubt, their DVD rent-by-mail businesses is it’s bread and butter, and it would be a very good move to focus some attention on it, as well as nurture the existing relationship it has with subscribers.

Subscribers are lighting up various message boards on several forums, noting that they can now no longer view streaming subscriber ratings when they are looking to rent a DVD by mail, and vice versa.  This distinction, while it may serve to be a frustration to some subscribers, is important.  Streaming only customers in the past were able to read reviews of movies that were only available by DVD, and then they were frustrated because they couldn’t stream it.  Licensing agreements had Netflix’s hands tied about this, and it left customers scratching their heads.  With the removal of browsing capabilities in the DVD-only titles also came the removal of the DVD queue from Netflix apps.

This move could potentially be a good solution.  Apparently in the near future, subscribers of both the DVD service and the streaming service will be able to view user ratings of both sites, but streaming only customers won’t be able to access the DVD ratings.  Because the DVD mailing service is only available in the United States, this will alleviate a lot of headaches that streaming subscribers in other countries have when browsing the website.

The only other DVD subscription mailing service in the United States is Blockbuster Total Access, and in the United Kingdom LoveFilm provides both DVD and blu-ray rental, as well as  digital movies & tv shows for streaming.

Source:  Film School Rejects

 

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iTunes Store – New Features in Several Products This Month

The logo for Apple Computer, now Apple Inc.. T...

The logo for Apple Computer, now Apple Inc.. The design of the logo started in 1977 designed by Rob Janoff with the rainbow color theme used until 1999 when Apple stopped using the rainbow color theme and used a few different color themes for the same design. (Photo credit: Wikipedia)

The Apple Team is, of course, renown for their innovations that set the standard in the technology marketplace.  They are also committed to tweaking their products to make them more valuable to their customers.  Here’s a highlight of some of the new features, fixes & updates they have recently introduced.  These products are all available in the iTunes Store.

  • iTunes 10.6.1 available in Software Update, fixing glitches in the music and library app, including crashing issues, VoiceOver problems, and iTunes freeze-up while syncing with iPod shuffle or nano.
  • Features in iBooks 2.1 – adds new features for iPad, iPhone, and iPod touch.  Ability to highlight text by touching and dragging finger across desired text.  You control color, and can even enter a note, plus search for the text elsewhere using a convenient popup dialog box.
  • One of the biggest items of news for streaming services lovers is that movies are now available on iCloud.  In the past, you could only rent movies to view on Apple TV.  Now, you can access your purchased content via iCloud and view it on all your iOS devices at any time, including 2nd generation and later Apple TV.
  • Alert tones & ringtones for devices are now available through the Tone Store, to assign to special people who call you the most.
  • A new partnership between Netflix and Apple allows consumers to now order and pay for their Netflix subscription directly through their iTunes account.  However, Netflix and YouTube are currently the only services currently available through Apple TV.
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Comcast Stirring the Net Neutrality Pot?

Deutsch: Logo von Comcast English: Logo of Com...

Deutsch: Logo von Comcast English: Logo of Comcast Latina: Insigne Comcast (Photo credit: Wikipedia)

Comcast will soon be giving Xbox Live users a freebie on their data usage caps IF they stream Comcast On Demand videos through their Xbox 360.  Comcast gives their subscribers a 250 GB monthly data limit, but will not count any data toward this monthly allotment for certain scenarios.

This will likely not set well with net neutrality advocates, who believe that internet usage should be unlimited without prejudices like this.  With the Comcast scenario. if you want to protect your precious data, then you will continue to subscribe to Comcast TV bundles, rather than Netflix or other services that are much more affordable.

Comcast noted on their website that “Xbox content is being delivered over our private IP network and not the public internet.”  But net neutrality advocates lobbying for an open internet cite a concern that Netflix raised a few years back when the FCC was considering updating their policies that included exempting managed services of private IP-based services.  Netflix noted that “if left unchecked, the managed services category could engulf the Commission’s open internet policies altogether,” rendering them meaningless in effect.

As entertainment subscription services transition from DVD by mail subscriptions to on demand streaming service subscriptions, this issue will certain be brought to the forefront as TV subscription providers like Comcast are worried about a mass exodus due to high priced bundles that leave consumers scratching their heads and wondering how to justify the monthly cost in their already strained budgets.

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Netflix – Is Getting Cozy With Cable Good For Your Reputation?

Numerous rumors abound that Netflix is seeking out a cable internet partner for which to bundle their service to pay TV subscribers.  From a ‘bottom line” standpoint, this is probably in and of itself a good move.  It will create a new source of revenue for Netflix, it will provide cable subscribers with an already-functioning streaming library that would probably be at least somewhat of an incentive to continue to pay high subscription costs, and it would potentially give Netflix more clout in future negotiations with entertainment companies.


But my immediate reaction is what could this possibly mean for Netflix’s reputation?  Despite the series of missteps that Netflix made last year, things aren’t looking completely dreary for their long-term future.  They are making inroads in expanding their services internationally, and US streaming only users are up 72% even after separating the DVD mailing service from the streaming only service.

Market research firm Interpret published a report entitled “2012 for Netflix:  Where It Can Succeed and Where It Can Fail” that analyzed key factors that will impact Netflix.  One is shoring up in the original television series content, since the service is being predominantly used for streaming TV, and not movies as was it’s focus when it was a DVD mailing service.

However, there is still a strong demand for new movie content.  This may be where Netflix views a deal with the devil to help.  The concern, however, is how consumers will view this.  Will it signal (either correctly or incorrectly) the “beginning of the end” of standalone streaming services as an option separate from pay TV subscriptions?

Should Netflix move forward with this, a candid agreement with a strong signal to consumers that it will still remain a separate entity will be important in order to retain their growing subscriber numbers.  People are getting fed up with the high cost of cable, and the “oh by the way” streaming services that cable & satellite providers are frantically throwing together in order to be relevant are laughable to most people struggling to make ends meet.

Low cost, high quality alternatives, which may or may not include a Pay TV subscription, are ultimately what we are looking or in this new economic reality we face.




Apple Wants You to Stream Through Them By Christmas

Will consumers have even more choice in 2013 when it comes to internet entertainment options?  It appears that the answer is ‘yes’, in the form of Apple streaming tv subscription services, according to the New York Post.  The goal is to offer channels, similar to Roku or gaming consoles, in the form of downloadable apps for its devices, including Apple TV.  However, despite their massive clout, Apple is finding out just how hard Netflix has it when it comes to negotiating with entertainment companies who own the rights to movies and TV shows.

One of the issues appears to be that entertainment companies are concerned with how much control Apple wishes to have over the service.  One media executive noted “They want everything for nothing.”   Netflix pays a distribution fee, however, in the past Apple wanted to have a share in the ad revenue, and did not want to pay any distribution fees.  Apple also reached out to cable TV giants for web-based TV packages, but with the same revenue sharing notions that would cut into cable’s profits.  A deal with AT&T or Verizon may not be out of the question, but really, only time will tell when the players involved will be willing to transition to a new business model.  Cable & satellite giants are trying to stop the probable exodus from their expensive services by offering their own version of streaming services.

This is all one very interesting chess game being played out before our very eyes.  Who will emerge the winner?  We hope the consumer, for once.  It’s not that we don’t want these companies to make money . . . but not on the backs of a people trying to make ends meet in a very shaky economy.