The delays and queue restrictions are part of an overall effort by Warner Brothers to boost its ailing DVD sales. The company thinks that by lengthening the time it takes for a movie to reach other platforms, it will increase demand for the DVD, and in turn make more money. Once a move reaches rental services and streaming video platforms, Warner Brothers stands to make far less revenue.Not allowing Netflix users to conveniently wait out the delayed availability of new DVDs fits within Warner Brothers new strategy. The company clearly wants consumers to feel the inconvenience and discomfort of not being able to watch these newly released movies immediately because it makes the option of buying the DVD much more attractive.
via Warner Bros. now adding restrictions to your Netflix DVD queue | VentureBeat.
The new “Mission: Impossible” film has made ten times more money than smaller films like “Young Adult.” If greater demand is supposed to move prices, why does a ticket to each movie cost the same?
via Why Do All Movie Tickets Cost the Same? – Derek Thompson – Business – The Atlantic.
Recently, Senator Ron Wyden asked CRS if it could explore the state of the movie industry today as compared to 1995 on a variety of different criteria. You can read the full report embedded below, but here are a few key points. First off, despite the industry’s regular attempt to play up its contribution to GDP and employment, the report found that the combined GDP contribution of both the “motion picture and sound recording” industries was a whopping 0.4% in 2009. Back in 1995… it was also 0.4%.
via Congressional Research Service Shows Hollywood Is Thriving | Techdirt.
What would it mean in terms of revenue if ALL BitTorrent traffic moved to Netflix?If we assume that BitTorrent and Netflix users consume roughly the same amount of content again an assumption favoring the movie studios, then this is an easy calculation. Netflix would generate a third more revenue. Based on the shareholders report of the last quarter of 2010 where most of the torrent stats in this article are based on this translates into $198 million additional revenue for Netflix.Based on more recent stats contained in Netflix’s third quarter filing of this year, the increase in revenue would be $266 million for that quarter.
via MPAA Costs Hollywood More Than US BitTorrent Piracy | TorrentFreak.
Today’s digital, global, on-demand media landscape has had only minimal effects on Hollywood’s “windowing” addiction—pushing out films in stages to theaters, then pay-TV, then satellite, then physical rental. Studios are continuing to push their “buyers only” window during which a film could be purchased at stores like Wal-Mart, but would not yet be available for rental.Blockbuster won’t go along with the request to delay new release rentals for 28 days after they first go on sale. In retaliation, Warner Bros. has refused to sell films directly to the chain, forcing Blockbuster to source those movies elsewhere. It’s the same tactic used by the studios on RedBox, which doesn’t get DVDs for rental until they have been on the retail market for four weeks.“The question is: how do we make ownership more valuable and attractive?” Warner Bros. Home Entertainment President Kevin Tsujihara told the Financial Times. “We have started the process of creating a window in bricks-and-mortar DVD and Blu-ray rental.”Blockbuster can work around the studios’ wishes because DVDs and Blu-ray discs are physical objects and thus subject to the “first sale doctrine” in the US; after purchase, the seller can’t continue to exert control over the objects. That’s not true of online streaming and downloads, giving the studios much greater power to control the windows of services like Netflix.
via Blockbuster trying to evade Warner Bros’ 28-day “buyers only” window.
Miramax CEO Mike Lang and Netflix chief content officer Ted Sarandos gave a keynote talk at the MIPCOM conference. The two discussed the challenges they face in the continuously changing digital world. Both agreed that piracy is not much of an issue as long as you give consumers what they want. Digital monopolies, such as Apple’s dominance in the music industry, are a far bigger threat.
pirateIf we believe the words of the MPAA and RIAA, piracy is the root of all evil resulting in billions of dollars in losses every year.
However, not all of the big players in the entertainment business subscribe to this theory. During the MIPCOM conference where movie and TV moguls gather, Miramax CEO Mike Lang and Netflix chief content officer Ted Sarandos touched on the subject of piracy. Both appeared to have a rather positive stance towards the issue.
Lang, whose company today debuts the Blu-Ray version of the cult classic Pulp Fiction, emphasized that people don’t necessarily want to pirate, as long as they get what they want. “Innovate or die,” should be the motive of entertainment industry companies, where it’s key to listen to customers.
“Piracy has not been the bigger issue for our company,” Lang noted. “I think all consumers at some point in their life , whatever market of the world, don’t want to pirate. They really don’t.”
via Digital Monopolies A Bigger Threat Than Piracy, Says Miramax CEO | TorrentFreak.
10 things to remember about Netflix while scratching your head about Qwikster
- Netflix DVD shipments “have likely peaked” and the company’s DVD subscriber base is declining. Already, 75% of Netflix’s new customers were signing up for streaming-only plans in the first couple of weeks after Netflix announced its price increases.
- Netflix sees its strongest competition as “an improved MVPD service offering more Internet video on-demand.” MVPD stands for “multichannel video programming distributor,” and includes cable companies like Comcast, telcos like Verizon, and satellite companies like DirecTV. Don’t forget that DISH Network recently bought Blockbuster’s assets and is bidding on Hulu.
- Netflix is expanding its streaming-only business internationally, but DVDs are only available to rent in the United States. Having a universal, worldwide definition of the Netflix brand — “streaming movies and TV shows for a monthly subscription fee” — is worth something.
- Qwikster relies heavily on the U.S. Postal Service, which is in big trouble. Would you want to have to worry about that every day?
- Netflix’s holy grail is to get each person, not each household, to have a separate streaming subscription, the way everyone also has a separate Facebook account. Separating a per-household service like DVD rentals-by-mail helps simplify that eventual transition.
- Netflix was already physically separating the DVD business, with that team to be based in San Jose, whereas Netflix corporate HQ is in Los Gatos, Calif. Netflix also says that negotiating DVD and streaming deals is already largely a separate process, involving separate groups at the studios.
- Eventually, Qwikster may decline enough or pivot into a different business to the point where Netflix may want to fully spin it off. Or sell it, or use it to buy other companies, or merge it with another company, ranging from Redbox to Best Buy to GameStop. Having a nondescript name that doesn’t suggest “mail” or “movies” is probably a good thing, given its unclear future.
- Netflix was already planning some sort of next step for this shakeup. It teased on its last earnings call: “we’ve got a dedicated group, who actually have come up with some pretty neat ideas for how to improve the DVD service … and those improvements will roll out in Q4.” [PDF]
- If Netflix finishes Q3 with 21.8 million streaming subscribers, as anticipated, it will still almost have as many video subscribers as Comcast, the largest U.S. cable company. Also: Most people who subscribe to digital TV services still aren’t Netflix subscribers, so they aren’t involved in the upheaval.
- As before, Netflix’s biggest challenge is now to get more streaming content to make the service better, while preserving its value. Part of that means it needs to convince studios to stream more of their best content through Netflix. (Some of that content is still only available on a plastic disc.) That’s why Netflix is so adamant to separate itself from the DVD business and speed up streaming adoption for studios and consumers.
via 10 things to remember about Netflix while scratching your head about Qwikster – SplatF.
Discovering behaviors and attitudes related to pirating content
Today’s consumers can access an astonishing variety of movies, videos, and television shows — on multiple platforms — faster than ever before. With so much content at their fingertips, what compels some consumers to commit online piracy by downloading or streaming content illegally?
via Speed of life: Consumer intelligence series.
Pachter predicts Netflix’s streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.
via Studios are starting to play hardball with Netflix – Jul. 11, 2011.
At the D9 Conference this morning, Netflix CEO Reed Hastings credited his company with helping to beat piracy — at least in the U.S. Now, he says, the challenge is to outcompete copyright infringement in places like Korea, where it runs rampant.
“One of the things that we’re most proud of is we’re now finally beating BitTorrent,” Hastings told AllThingsD’s Kara Swisher. Thanks to services like Netflix, Hastings said most Internet video is now paid for in the U.S. The hard part for content providers, he said, was coming up with a service good enough that people were willing to pay for, rather than just searching for free content on the Internet. Netflix has been able to provide that service by making its streaming videos available across a vast number of devices, and giving subscribers access to a wide range of library content for a relatively low price.
Netflix has also enabled content owners to make money on shows they previously weren’t monetizing. Hastings offered up Joss Whedon’s Firefly as one example of a series that had a rabid fan base that couldn’t find it under legal means prior to appearing on Netflix. At the same time, he quelled any rumors that the company could bring Firefly back from the dead.
via Netflix CEO: ‘We’re Finally Beating BitTorrent’ — Online Video News.
The number of illegally downloaded films in the UK has gone up nearly 30% in five years, new figures suggest.
That research, from internet consultancy firm Envisional, indicates that the top five box office movies were illegally downloaded in the UK a total of 1.4 million times last year.
Film industry bosses say it is costing £170m every year and putting thousands of jobs at risk.
The research also shows a big rise in TV shows being pirated online.
Dr David Price led the the team which conducted the research and said there are four main reasons for the increase.
“We’ve seen increases in technology like faster broadband,” he said.
“The methods of piracy have become easier, with quicker downloads and easier to find content.
“We have a generation online now who aren’t really bothered about downloading things illegally.
“Finally it’s an issue of availability – there’s a lot of American content which a lot of people are desperate to download that they can’t get hold of legitimately.”
via BBC – Newsbeat – Illegal UK film downloads up 30%, new figures suggest.
Signing a deal that makes anyone a net profit participant in a Hollywood movie deal has always been a sucker’s bet. In an era where studios have all but eliminated first dollar gross and invited talent to share the risk and potential rewards, guess what? Net profit deals are still a sucker’s bet. I was slipped a net profit statement below for Harry Potter and The Order of the Phoenix, the 2007 Warner Bros sequel. Though the film grossed $938.2 million worldwide, the accounting statement below conveys that the film is still over $167 million in the red. Text continues below…harry potter net profits
via STUDIO SHAME! Even Harry Potter Pic Loses Money Because Of Warner Bros’ Phony Baloney Net Profit Accounting – Deadline.com.
Friday nights in Romania under the Communist regime which came to an end in December 1989, friends and family would gather in front of their television sets, trying to guess what they were actually watching. Telephone calls would be made, film reference and theory books consulted. Such detective skills were required due to the government’s censorship tactics, which included screening foreign films both on television and in cinemas with their titles altered beyond recognition, their credit sequences removed, entire scenes eliminated, and dialogue ideologically “cleansed” through the subtitling process. 1 Coauthor and Romanian national Ioana Uricaru recalls that “God” was invariably translated as Cel-de-Sus, or “the one above,” and “church” as edificiu, or “edifice.” 2 Sometimes films playing in cinemas would differ dramatically at the beginning and end of their run as elements requiring excision came to the attention of officials. 3Subtitling was the translation method associated with government media channels. As such, it was considered official, professional, and proper—both “ideologically correct” and the industry standard. With subtitles, interference of the “original” is kept at a minimum. 4 As lines of text superimposed onto the film image, subtitles neither erase nor noisily intrude upon the foreign soundtrack. Consequently, they are often viewed as a clean technique that respects the source material by enabling it to remain intact. However, in Romania the identification of subtitling with “quality” translation was compromised by its close link to adjacent practices of content deletion and paraphrasing for the sake of ideological alteration. The role that subtitling played in making meaning palatable for the “party line” meant that this technique was, concurrently, subject to suspicion and distrust
via Project MUSE – The Velvet Light Trap – Slashings and Subtitles: Romanian Media Piracy, Censorship, and Translation.
As TorrentFreak, one of the first blogs to report on the Locker case, points out: If only 10,000 of the alleged infringers pay a $2,000 settlement, it would net $20 million for Voltage and USCG. In comparison, The Hurt Locker grossed $17 million at the U.S. box office.
via Hurt Locker lawsuit: 50,000 sued for BitTorrent downloads – Jun. 10, 2011.
The year 2010 was similar to 2009 in that the domestic box office hit a record high, once again, while the domestic video retail market was continuing its steady decline as consumers alter their home video viewing habits.Consumers are now opting to sign up for streaming and/or rental services, such as Netflix Inc. They are using video-on-demand services more and more, as they discover these services can be cost-effective.Unfortunately for studios, the revenue from VOD has not yet offset the resulting drop in DVD sale revenue, which was their top earner for more than a decade now.We tracked 415 titles in our database that were released on DVD in 2010, and among those titles, wholesale revenue dropped by 43.9% from $7.97 billion in 2009 to $4.47 billion in 2010. It is important to note that this does not include Blu-ray revenue, which grew significantly in 2010. It should also be noted that this sample of the video market does not include library titles, direct-to-video titles and TV on DVD, as well. When looking at the video retail market as a whole, consumer spending only declined 10.8% to $11.86 billion in 2010.The average wholesale price was relatively flat when compared with 2009, but there were significantly fewer units shipped, down 43.8% to nearly 226.0 million.On average, films shipped 545,000 units and made $10.8 million in wholesale revenue, off 52.4% from the $22.6 million average in 2009. In the past five years, average wholesale revenue posted a negative 13.7% CAGR.
via SNL: Article.
Netflix knocked over a new milestone Monday: It now has more subscribers than the largest cable TV operator in the U.S.
Netflix's global subscriber base grew almost 70% over the past year, to 23.6 million users. With that audience, it dethroned Comcast (CMCSA, Fortune 500) as the country's biggest provider of subscription video content. More than 7% of Americans now subscribe to Netflix.
Those details came out Monday in Netflix's (NFLX) first-quarter report, in which the company reported earnings of of $60.2 million, or $1.11 a share. That's up from $32 million, or 59 cents a share, a year ago.
Revenue rose 46% to $719 million. Both figures topped Wall Street estimates, but shares fell 2.5% in after-hours trade on light forecasts for the second quarter.
via Netflix tops Comcast as largest video subscription service – Apr. 25, 2011.
YouTube could become the latest to offer a movie rental service, challenging streaming sites such as Netflix.The entertainment news site The Wrap says Google is lining up deals with major Hollywood studios in order to launch the service. The story cited an anonymous executive at a studio that has signed on who said Sony Pictures Entertainment, Warner Brothers, Lionsgate and Universal have all licensed their movies to the service. Not everyone is on board — Paramount, Fox and Disney declined to join. Photo: Reuters<br>YouTube is preparing a video rental service according to one report.EnlargePhoto: ReutersYouTube is preparing a video rental service according to one report.Related ArticlesStrong earnings push S&P through key levelAnalysts Are Concerned Netflix’s Fun Run About To EndStrong earnings drive S&P through key levelRelated Topics Netflix Wal-Mart Hollywood Sony InvestmentGet Tech Emails & Alerts Stay connected with cutting edge technology news SampleYouTube has already gotten into the movie rental game with a few independent films. The service is currently in beta mode and the films are available for a 24-hr rent at the price of $2.99.A YouTube spokesperson said, “We've steadily been adding more and more titles since launching movies for rent on YouTube over a year ago, and now have thousands of titles available. Outside of that, we don't comment on rumor or speculation.”
via Watch Out Netflix, YouTube Is On The Prowl – Entertainment & Stars.
In a little over two months time, the long-awaited horror movie The Tunnel will receive its world premiere. Rather than a traditional theatrical release, the movie – which is set in abandoned real-life tunnels under Sydney, Australia – will make its debut online for free with BitTorrent. Simultaneously it will be released on physical DVD, to be distributed by Hollywood giant Paramount Pictures.
via Paramount Pictures Partner With BitTorrent Release Movie | TorrentFreak.
TekGoblin
Netflix announced today that they have brokered a deal with Disney-ABC to add their content to the Netflix library. The deal should add a substantial number of new TV shows and Movies to instant watch. The episodes will be added rather quickly to instant watch only 15 days after initial telecast. Here is a list of the new additions to Netflix:
- Prior season episodes of current ABC hit series “Grey’s Anatomy,” ”Desperate Housewives” and, for the first time on Netflix, “Brothers & Sisters,” all of which are among the network’s most successful and popular TV franchises in recent years.
- Every episode of recent ABC favorites “Lost” and “Ugly Betty,” the latter making its streaming debut at Netflix.
- Each season of several hit series from ABC Studios, including “Scrubs” and “Reaper,” which are both new additions to Netflix.
- A host of content from the Disney Channel, including the hits “Phineas and Ferb” and “Good Luck Charlie,” which are also new to Netflix; updated and expanded offerings of “The Suite Life on Deck” and “Wizards of Waverly Place;” and library offerings from the smash hits “Hannah Montana” and “The Suite Life of Zack & Cody.”
- A wide range of content from ABC Family, marking the introduction of ABC Family content streaming from Netflix. Included are the hit series “Greek,” “Make It or Break It,” “The Secret Life of the American Teenager” and “Melissa & Joey.”
With much more content to come. Netflix also recently added a new plan that included no dvd rentals but unlimited streaming for only $7.99 a month down from the original $8.99 plan.
Epicenter | Wired.com
 Netflix instant accounts for 20 percent of all non-mobile internet use during prime time in the United States, according to a new study.
Streaming media — real-time entertainment — accounts for 43% of peak period traffic in the U.S., according to Sandvine, which helps ISPs manage their networks and thus has access to buckets of information about usage patterns.
But Netflix alone accounts for nearly half of that between 8 and 10 p.m., and that usage comes from only 1.8 percent of the service’s subscribers.
“Per-user, Netflix is the heaviest user of downstream bandwidth in North America: the average fixed access Netflix connection is 1 megabit per second,” Sandvine said in reply to an e-mail question. “On mobile networks, per user, only Slingbox (at almost 800 kbps) is heavier than Netflix (~125 kbps).”
Streaming video is the most bandwidth-intensive use of the internet, but there are plenty of other choices — starting with YouTube. So the dominance of Netflix, which only offers “studio” fare, would seem to indicate that there is an enormous appetite for profession programming delivered from the cloud.
Good news for Hulu, Amazon Unbox and even YouTube, should its movie rentals service gain traction. Better news for the content creators, assuming they can come up with a killer streaming revenue model and as if they needed any more proof that on-demand, internet delivery is the future. Bad news for cable and satellite — protestations by CEO Reed Hastings notwithstanding.
But Hastings does see that streaming is the engine for Netflix now. “In fact, by every measure, we are now primarily a streaming company that also offers DVD-by-mail,” Hastings said in conjunction with the company’s earnings report Wednesday [pdf]. “At the same time, the introduction of our streaming offering in Canada in late September has provided us with very encouraging signs regarding the potential for the Netflix service internationally.”
|
