Netflix’s Move Onto the Web Stirs Rivalries (Dinosaur Media DeathWatch™)

The New York Times ^ | November 24, 2010 | Tim Arango and David Carr

[abb]

In a matter of months, the movie delivery company Netflix has gone from being the fastest-growing first-class mail customer of the United States Postal Service to the biggest source of streaming Web traffic in North America during peak evening hours.

That transformation — from a mail-order business to a technology company — is revolutionizing the way millions of people watch television, but it’s also proving to be a big headache for TV providers and movie studios, which increasingly see Netflix as a competitive threat, even as they sell Netflix their content.

The dilemma for Hollywood was neatly spelled out in a Netflix announcement Monday of a new subscription service: $7.99 a month for unlimited downloads of movies and television shows, compared with $19.99 a month for a plan that allows the subscriber to have three discs out at a time, sent through the mail, plus unlimited downloads. For studios that a few years ago were selling new DVDs for $30, that represents a huge drop in profits.

“Right now, Netflix is a distribution platform, and has very little competition, but that’s changing,” said Warren N. Lieberfarb, a consultant who played a critical role in creating the DVD while at Warner Brothers.

For the first time, the company will spend more over the holidays to stream movies than to ship DVDs in its familiar red envelopes (although it is still spending more than half a billion dollars on postage this year). And that shift coincides with an ominous development for cable companies, which long controlled home entertainment: for the first time in their history, cable television subscriptions fell in the United States in the last two quarters — a trend some attribute to the rise of Netflix, which allows consumers to bypass their cable box to stream movies and shows.

snip

[TomGuy]

I started with Netflix about 6 months ago.

I can stream and DVDs, without commercials, rather than have the repetitious same-ole movies on extended cable. [How many times can cable play Men in Black or Independence Day in a single year? Answer dozens and dozens.]

Even with their recent $1 increase in the 2-DVD’s + unlimited streaming pricing, Netflix is a good deal.

I bought the Roku box which allows me to stream direct to the TV.

Netflix’s streaming competition is primarily Hulu, which is struggling and overcharging with their HuluPlus [the Plus is Pay subscription PLUS still get interruptive commercials].

[spodefly]

I don’t have cable because I don’t own a television.

I watch a few shows each week on Hulu, and an occasional movie on Netflix. I haven’t been to a movie theater to watch a new release in almost 2 decades.

My life is better for avoiding the passive idiot box and the “programmers” who fill it with crap 24/7.

My behavior, multiplied by millions, may hurt the business model of Hollywood studios and major television networks. I don’t care.

Production methods have changed, distribution models have changed. Adapt or die.

[UCANSEE2]

Though for some reason they pulled the first 4 seasons of Lost off

All of the MOVIE/TV/VIDEO sites are pulling selected video streams off the net. They used to have sites where they had EVERY EPISODE of whatever SERIAL you wanted.

Now, they are cutting back, so that you are forced to pay sites to get the same thing.

Eventually, they will no longer have 'free' movie/tv/video at ALL on these websites, and will either be charging or go out of business. (most are scheduled to do the later).

[abb]

Yes, Limewire is gone. But dozens more have taken its place since.

In my opinion, the concept of copyright will fade away altogether.

[meatloaf]

No doubt about. Instant gratification sells.

[MrEdd]

HTML video is more efficient than flash.

Apple has refused to put flash software on their iOs devices primarily because of the battery life hit.

[bert]

Have you tried Boxee?

[dennisw]

Why shouldn’t ISPs get some of this revenue? This is why ISPs are anti-Net Neutrality. They justifiably want some of the profits here. The pioneers of computers would have been astounded and disappointed to see where their efforts lead. To bouncing crappy movies and video-porn around the internet.

Though I do remember George Guilder proclaiming as early as 1992 (I think) there would be a computer/TV/internet convergence in a decade or two

[dennisw]

By H. L. Siddons, Jr.

Category: Computers and Software

A Personal Historical Perspective
Here in the 21st century, everyone is touting “Convergence” as something new and exciting...yeah, right.

In 1989 I predicted the convergence of the common PC, TV (television), radio (AM/FM stereo) and phone (telephone). I envisioned myself using a computer that had the ability to watch television, listen to the radio, talk on the phone and control, monitor and manage other electric appliances in my home.

[abb]

But my question is, doesn’t today’s video delivery software require much less bandwidth than that of ten years ago?

[Citizen of the Savage Nation]

Well, I thought I was paying for it with my subscription fee. Either way, it’s the way of the future...Netflix will do it, or so done else will.

[abb]

http://online.wsj.com/article/SB10001424052748704369304575632530358690498.html
Time Warner Cable Tests New Range of TV Packages

http://online.wsj.com/article/SB10001424052748703567304575628831283366798.html?mod=WSJ_0_0_WP_2722_RIGHTTopCarousel_1
Cord-Cutting Avoids Biggest Cities

http://gothamist.com/2010/11/23/photos_bowlmor_puts_useless_newspap.php
Bowlmor Puts Useless Newspaper Building to Good Use

http://www.bloomberg.com/news/2010-11-23/mobile-advertising-sales-to-grow-tenfold-by-2015-informa-says.html
Mobile Advertising Sales to Grow Tenfold by 2015, Informa Says

http://www.niemanlab.org/2010/11/the-journalists-guide-to-community-funded-reporting-a-handbook-and-lessons-from-spot-us/
A handbook for community-funded journalism: Turning Spot.Us experience into lessons for others

[Citizen of the Savage Nation]

Ah, so that’s what that was all about...well, I hope websites hurry up and switch to html5 and dump flash, my iPad (and I) would really appreciate it!

[TomGuy]

unlimited downloads

This is incorrect.

Technically, it is correct. The video file is streamed (downloaded) to a special directory on your computer. The segments are re-assembled on your computer during PLAY.

You could, if you had a 're-assembler' program, put the pieces back together on your computer.

[abb]

http://www.medialifemagazine.com/artman2/publish/Broadcastrecap_64/So-why-are-awards-shows-off-The-web-.asp
So why are awards shows off? The web.

http://www.medialifemagazine.com/artman2/publish/Overnights_50/Huge-finale-for-Dancing-with-the-Stars-.asp
Huge finale for ‘Dancing with the Stars’

[TomGuy]

My most common mail item these days is Netflix movies. It is no doubt keeping the US Postal Service afloat.

Netflix is the P.O.'s biggest client. Netflix will also be very instrumental in whether the P.O. ends Saturday delivery, as that will impact millions of Netflix customers and their DVD deliveries. Netflix is a multi-billion dollar company now, and they have alot of muscle.

[Stegall Tx]

expect that your cable/telco ISP rates will start to spike if they have to stream huge files to your home since the network is not configured to handle those types of sustained downloads

Except that is exactly how Verizon designed FIOS and AT&T designed U-verse. Both are delivered via IP, so what's the diff if you have a box provided by AT&T decoding an IP stream into CATV or if you have a box (such as the Roku) decoding an IP stream from NetFlix (and a lot of other optional channels)?

[libertarian27]

You can watch streaming tv and movies without paying for it now - and I’m not talking hulu - there’s a bunch of content gathering sites out there.

[Erik Latranyi]

As long as YOU PAY.

Since I am not a liberal, I do not expect anyone else to pay for the content I want.

[TomGuy]

Have you tried Boxee?

No. It was a tad late to the dance and a bit pricey. I got the Roku box for Netflix.

A few months earlier, I had purchased the Western Digital HD TV box which allows many computer video formats [avi, mpg, wmv, etc] to be played from an external hard drive via USB port to the TV.

With those two, nearly anything that I can play on the computer I can also play on the lcd HD TV.