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  • This site is an independent Web site (I don't work for Netflix). Netflix is registered trademark of Netflix, Inc. HackingNetflix will not teach you how to lie, cheat or steal from Netflix. Hacking is the desire to fully understand something, and we want to learn as much as we can about this company and share this information.

    Click here for more information about this Website and a full disclosure statement.

    Investors: Please do not use the information on this site to buy or sell stocks. I don't want to have to explain to your spouse how you lost a huge amount of money based on advice from a site called "Hacking Netflix."

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« May 2004 | Main | July 2004 »

Netflix Chats with Hacking Netflix

I had a very informal chat with Netflix. Based on my prior attempts to establish a dialog (Bloggers & Corporate Public Relations Departments), I was surprised by an e-mail and then a conversation with representatives from Netflix.

Netflix, like most companies, has limited resources and bandwidth, but they are working on a strategy to reach out to the online community. They are very aware of the blogs and Web sites that discuss Netflix, and are listening to the chat rooms where we complain about, criticize, and compliment them.

They do get it. We just have to give them some time to figure out what to do with us.

Netflix Q2 2004 Webcast on July 15th

Netflix issued a press release (PDF file) announcing a Webcast of the Q2 2004 earnings on July 15th, 2004 at 2pm (PST), after the release of the financial results for the quarter. You can tune in at: http://ir.netflix.com.

Always interesting to listen to, this time I'm wondering about the price increase, churn rate, and revenue.

New Releases for June 29, 2004

A wide range of new movies this week. I spent a bit of time debating about the William Hung movie, but since American Idol is so popular, I was afraid of getting hate e-mail if I didn't post his movie (we really shouldn't be encouraging him).

13 Moons (2002) Steve Buscemi, Karyn Parsons
3 Way (2004) Dominic Purcell, Joy Bryant
Aida (2004) Luciano Pavarotti, Margaret Price
And the Beat Goes On: The Sonny and Cher Story (1999) Jay Underwood, Renee Faia
Barbershop 2: Back in Business (2004) Ice Cube, Cedric the Entertainer
Blazing Saddles: 30th Anniversary Special Edition (1974) Cleavon Little, Gene Wilder
Bleak Moments (1971) Anne Raitt, Sarah Stephenson
Cold Mountain (2003) Jude Law, Nicole Kidman
Colonial House (2-Disc Series) (2004)
CSI: Miami: Season 1 (6-Disc Series) (2002) David Caruso, Emily Procter
Dawson's Creek: Season 3 (4-Disc Series) (1999) James Van Der Beek, Katie Holmes
Der Fliegende Hollander (1989) Hildegard Behrens, Matti Salminen
Die Mommie Die (2003) Charles Busch, Natasha Lyonne
Dracula: Dead and Loving It (1995) Leslie Nielsen, Peter MacNicol
Erotic Nights of the Living Dead: General Release Version (1980) Laura Gemser, George Eastman
Fancy Pants (1950) Bob Hope, Lucille Ball
Garfield as Himself (2004) Lorenzo Music, Sandy Kenyon
Knight Club (2001) Lou Diamond Philllips, Lochlyn Munro
La Belle Noiseuse (2 Discs) (1991) Michel Piccoli, Jane Birkin
Land of the Lost: Season 1 (3-Disc Series) (1974) Spencer Milligan, Wesley Eure
Little House on the Prairie: Season 5 (6-Disc Series) (1978) Michael Landon, Melissa Gilbert
Maggie & Annie (2004) Amy Thiel, Joy Yandell
No Small Affair (1984) Demi Moore, Jon Cryer
Rebels & Redcoats: How Britain Lost America (2004) Richard Holmes
Revenger's Tragedy (2002) Christopher Eccleston; Eddie Izzard
Ron White: They Call Me "Tater Salad" (2003) Ron White
Salome (2004) Steven Berkoff
Samurai Reincarnation: Makai Tensho (1981) Shinichi Chiba, Kenji Sawada
Short Fuse (2001) Frances McDormand, Mary-Louise Parker
Simon Boccanegra (1998) Elena Prokina, Ginacarlo Pasquetto
South Park: Season 4 (3-Disc Series) (2003) Trey Parker, Matt Stone
The Cheetah Girls (2003) Raven-Symone, Lynn Whitfield
The Dick Van Dyke Show: Season 5 (5-Disc Series) (1965) Dick Van Dyke, Mary Tyler Moore
The Perfect Score (2004) Scarlett Johansson, Erika Christensen
The Salamander (1981) Franco Nero, Anthony Quinn
The World of Suzie Wong (1960) William Holden, Nancy Kwan
Three Blind Mice (2001) Brian Dennehy, Debrah Farentino
Tycoon: A New Russian (2002) Vladimir Mashkov, Mariya Mironova
Who's Who (1979) Philip Davis, Bridget Kane
William Hung: Hangin' with Hung (2004) William Hung
Wonder Woman: Season 1 (5-Disc Series) (1976) Lydna Carter, Richard Eastham

DVD Rental Competition Article

The Dallas Morning News has a great comparison article (free registration required) that looks at Netflix, Wal-Mart, Blockbuster, Gameznflix, GreenCine, and Cleanfilms.

In this section of the story Crayton Harrison talks about delivery speed:

Delivery speed. Netflix has concentrated on building its distribution network in metropolitan areas, and it has done a good job, if delivery to my home in East Dallas was any indication.

Netflix movies showed up at my house the day after I ordered them, thanks, no doubt, to the Irving distribution center the company built in 2002. When I sent Netflix movies back to the company, I had new ones in my mailbox within two days without fail.

Wal-Mart needed an extra day, in most cases, to send movies to me. When I returned movies in exchange for new ones, the turnaround time was three or four days.

That was far better than most other services, which took as long as a week to send me my movies.

Here's the comparison chart from the story:

dallsmnnf

I just want to know how Cleanfilms can rent a "clean" version of Kill Bill without offensive language, sexual situations, or graphic violence. Is the resulting movie 20 minutes long?

Thanks again to Joe for sending this in.

Bloggers & Corporate Public Relations Departments

I’ve spent the past few days debating if I should post this at all. I finally decided that this is an important issue many bloggers are facing and wanted to start a discussion on this topic.

I’ve been working on HackingNetflix.com since last fall. I like Netflix (I’ve been a subscriber since September, 2002) and wanted to start a blog to discover and share information about this company. The blog has since grown, and I’ve built up a community of people that visit, comment, and exchange e-mails with me. I really enjoy working on this project.

I’ve worked in the technology field since 1985. I’ve worked in technical support, programming, marketing, sales, and many years in public relations. I’ve won many industry awards for companies, including a PC Magazine Editor’s Choice Award, InfoWorld’s Best in Class, and even the highest software award, a “Codie” from the SIIIA.

I’ve approached Netflix public relations twice since I started HackingNetflix.com. The first time was to ask if I could be added to the press list, and they declined. No big deal, I can get the releases from other sources.

I approached Netflix last week with the intention of running an “Ask Netflix” story. The plan was to ask you, my loyal readers, for questions to present to Netflix for answers. I would e-mail the questions to Netflix public relations, and they could answer them at their leisure. I called them, and when they didn’t call me back, I e-mailed the idea.

Here’s my original e-mail:

From: mikek@hackingnetflix.com
Sent: Wednesday, June 16, 2004 1:41 PM
To: XXXXXXXXXX
Subject: Working on a new "Ask Netflix" column...
Hello,

I am working on a new "Ask Netflix" story for my Web site,
www.HackingNetflix.com. I would like to put out a request for
questions, edit them, and then send them to you for response (you can
always decline to answer a question).

Are you willing to participate in this story? HackingNetflix.com gets a
lot of traffic and has a very loyal group of Netflix fans. I know there
are questions not answered by your FAQ that people would like answers
to.

I would also like to know if I can arrange to get a tour of a
distribution center (I live in Connecticut, so a local one would be
preferred).

I promise to keep this friendly (I do like you guys).

Just out of curiosity, have you seen HackingNetflix.com before?

- Mike

This is a very common request for public relations departments, and I’ve been on the receiving end of these, so I tried to make it easy for the Netflix people to handle.

This is the response I received from Netflix:

Hi Mike,

We appreciate your interest in Netflix, but we must decline your request at
this time. Thank you for your zeal for Netflix and we wish you the best for
your site.

Best,
XXXXXXXX

I was seriously disappointed. When I worked in public relations I tried hard to answer every phone or e-mail request, no matter how small the publication. I spoke at user groups at every opportunity (and public speaking used to make me physically ill!). Blogs are a small online community, just like a journal or user group.

I think most companies don’t get blogs yet. I know Netflix public relations is concerned with making USA Today and the New York Times happy, but how can you ignore a community that has tens of thousands of your customers? I had 1,000 people visit my site today, plus an untold number that read my site through RSS and Atom feeds. If you do the math it’s easily 20 – 30,000 readers a month (and growing!).

I know I’m not alone. It’s hard to get companies to take bloggers seriously. I really like Netflix, but they are slowly withdrawing, closing themselves off from their customers (they recently removed their phone numbers from the site). Instead, companies should be embracing these online communities, comprised mostly of the highly desired “early adopters” that evangelize products to the general population.

Great Video Industry Overview in USA Today

David Lieberman at USATODAY.com did his homework and put together an awesome article on the Video industry. It has more statistics and information than the last 10 articles I've read, and covers everything from VOD to movie downloading.

Here are a couple interesting bits:

Studios make more from videos than they do from theater box offices. Last year, people paid $8.2 billion to rent videos and $16 billion to buy them, compared with $9.5 billion to see movies at the theater.
Equally impressive, studios in the first half of 2004 licensed 20 movies to VOD in 30 days or less. That's up from 14 in all of 2003 and three in 2002. This year's fast-to-VOD films include X2: X-Men United, American Wedding, The Lord of the Rings: The Return of the King and Mystic River.
That's why he [Blockbuster CEO John Antioco] doesn't think studios will continue to shorten the period retailers have in which to offer hit movies before they appear on cable, satellite and the Internet. If they did, retailers and consumers would buy fewer DVDs. Because studios make about $2 on each VOD showing, they'd need about eight rentals to make up for just one $15 DVD sale lost.

If you want a good overview of what's happening, read Blockbuster jabs back at its rivals

Viacom Dumps Blockbuster, Gets $738 Million Tax-Free

Wish I had paid more attention in my college accounting classes. Just watching companies like Viacom, after being unable to sell Blockbuster to anyone, find some loophole that lets them get rid of a bad investement and reap $738,000,000 tax free. If I lost $3.6 billion since 1997 I would really work hard to find a way to get back some of that money (OK, so maybe I am enjoying this a bit much, but I am still bitter about all of the late fees I paid over the years).

So many online new sites covered the story it would be hard to be fair to all of them, so I'll link to a few covering this story:

NY Times: BIG Payout Set by Blockbuster to Viacom

TheStreet.com: Viacom Gets Blockbuster Payday

Houston Chronicle: Terms Announced in Blockbuster Deal

Figures that I'd go away on a long weekend and all heck would break loose.

Slate: STARZ! Will Drive You To Piracy

Paul Boutin at Slate says that STARZ! is "...just good enough to drive you to piracy." He compares the new movie download service from the Starz TV network and RealNetworks to BitTorrent, a program often used to download illegal versions of movies. Paul says:

Bootleg movies on BitTorrent are often of higher visual quality than Starz movies, thanks to DivX's compression format, which looks a lot better than Real's at the same file size. And bootleggers often scan movies at higher resolution than Starz offers—a 750 megabyte DivX of Nemo looks a lot better than a 500 megabyte Real file.

I was worried that STARZ! would bet Netflix to market with a really cool product, but I think Netflix is being careful and working out the bugs and details before launching. Netflix, with more than 2 million members, has the luxury to be able to do it right, rather than rush a low-quality service to market.

Movies Coming to DVD Faster / DVD's Make Double the $$

The time it takes for a movie to finish at the theater and come out on DVD is getting shorter and shorter, according to this BusinessWeek.com story (paid registration required).

Hollywood is simply following the money. Traditionally, studios release their films on DVD five or six months after the premiere. But DVD and video sales now generate more than twice as much revenue as theater showings, says Adams Media Research. That's why Disney's Miramax unit will ship copies of Kill Bill Vol. 2, starring Uma Thurman, just shy of four months after its Apr. 16 opening, says DVD Release Report. Sony also says it's planning to release DVDs of its comic book adventure film Hellboy a little less than four months after its Mar. 30 debut.

This can only be good for Netflix. We have two small children and it's hard for us to get out to see a movie, so we wind up watching movies on DVD most of the time. There's also the cost of popcorn and soda that add on the already high movie tickets that make it cheaper and more convenient to make it a "Netflix Night."

Sent in by HackingNetflix reader Joe.

New Releases for June 22, 2004

Here's the weekly fix for your video addiction:

A Woman Is a Woman (1961) Jean-Paul Belmondo, Anna Karina
Antony & Cleopatra (1974) Richard Johnson, Janet Suzman
Bad Santa (2003) Billy Bob Thornton, Bernie Mac
Biggles: Adventures in Time (1986) Neil Dickson, Peter Cushing
Bloody Territories (1969) Tsuneo Aoki, Tatsuy Fuji
Cave In (2003) Mimi Rogers, Ted Shackelford
Clinton and Nadine (1988) Andy Garcia, Ellen Barkin
Close to Leo (2002) Pierre Mignard, Yannis Lespert
Cold Feet (1989) Keith Carradine, Sally Kirkland
Deathwatch (2002) Jamie Bell, Ruldhri Conroy
Deception (1993) Andie MacDowell, Liam Neeson
Devil Winds (2003) Joe Lando, Nicole Eggert
Gettysburg: Three Days of Destiny (2004) James Choate, Patrick Falci
Greendale (Directed by Neil Young) (2004) Eric Johnson, Ben Keith
Hullabaloo Over Georgie and Bonnie's Pictures (1978) Peggy Ashcroft, Larry Pine
Les Miserables (1978) Richard Jordan, Anthony Perkins
Level 13.Net: Around the World (2003)
Line King: The Al Hirschfeld Story (1996) Lauren Bacall, Carol Channing
Major League Soccer: Greatest Goals (1996-2003) (2004) J.P. Dellacamera
Mamma Roma (1962) Anna Magnani, Ettore Garofolo
Mapp & Lucia: Series 2 (2-Disc Series) (1986) Geraldine McEwan, Prunella Scales
Mutant X: Season 2 (Discs 3 & 4) (2002) Forbes March, Victoria Pratt
Night Patrol (1984) Linda Blair, Pat Paulsen
Perfect Strangers (2003) Sam Neill, Rachael Blake
Qigong For Health (1997) Paul Lam
Reno 911: Season 1 (2-Disc Series) (2003) Cedric Yarbrough, Niecy Nash
Scooby-Doo and the Loch Ness Monster (2004) Casey Kasem, Sheena Easton
Secret Window (2004) Johnny Depp, John Turturro
The Brewster Project (2004) Mr. Cheeks, Mike Shorey
The Joe Schmoe Show: Uncensored: Season 1 (3-Disc Series) (2003) Matt Kennedy Gould, Melissa Yvonne Lewis
The Lost Skeleton of Cadavra (2004) Fay Masterson, Andrew Parks
The New Girl (2003) Juliana Kincaid, Diana Espen
Wolf's Rain (2003) Mamoru Miyano, Johnny Yong Bosch

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