Hacking NetFlix

Variety on the Growing Netflix Threat

Variety has very interesting story (Netflix Adds its Own Pix to the Mix) about how Netflix is starting to flex their muscles in the movie biz, despite being a fraction of the size of Blockbuster:

But Netflix also has used its leverage to pressure distributors. Haggling over terms has become common; several suppliers say that in fits of pique they have halted sales to the vidvid rental company in the hope that Netflix blinks first. (It usually doesn't.)

Meanwhile, studio execs worry privately that a gargantuan rental player could give rise to a number of problems. The real DVD margins lie in sales, and Netflix, they believe, cuts into those sales by making rentals so easy.

To the chagrin of exhibs, Netflix could also become a cudgel in the battle to collapse the distribution window. "We want to continue getting the message out that a long window isn't just bad for Netflix, it's bad for the studios," says Netflix chief content officer Ted Sarandos.

You can read the rest of the story here.

Thanks to Joe for sending this in.

Blockbuster Q4 2005 Earnings Call

The Blockbuster Q4 2005 earnings conference call will be held on March 9th at 10am (ET). This should be a very interesting call and you can listen in at http://investor.blockbuster.com.

FindLaw on the Netflix Settlement

Anita Ramasastry from FindLaw has written an analysis of the Netflix Class Action Lawsuit:

The problem, though, was that Netflix did not disclose the throttling to consumers up front - and thus arguably misled them as to the service they were purchasing, breaching its agreement with them, as stated in its Terms and Conditions. For this reason, the plaintiff class had a valid claim.

Nevertheless, I will argue that this suit -- which led to a whopping payment to attorneys and limited benefits to DVD renters -- may not have been the best way to protect consumer interests. The lawyers may get as much as $2.5 million in fees. And Netflix subscribers will get an upgrade on their current subscriptions for one month.

The conclusion?

One thing is for sure: The suit didn't put a stop to throttling. Netflix is still doing it - and so is Blockbuster, which now also offers a rent by mail service for DVDs. The difference is that now, both are doing it openly.

via Netflix Fan Blog

New Releases for February 28th, 2006

Click here for the full list of new releases this week (157).

Interesting movies include Walk the Line, Yours, Mine and Ours, Pride & Prejudice, The Ice Harvest, Where the Truth Lies, Network: Special Edition, John Cleese's Personal Best (Terry Jones, Graham Chapman, and Terry Gilliam, too), New Orleans: Anatomy of a Disaster: Nova, and National Geographic: Inside Grand Central.

Netflix in Ireland?

Davis Freeberg comments on a rumor about Netflix being a suitor for the Irish DVD-by-mail company Busy Bee DVD. According to ElectricNews:

Busy Bee DVD, Ireland's second provider of an online movie rental service, says it has been approached about a takeover from overseas -- even before Ireland's other provider has changed its name to reflect its acquisition last month, according to the Irish Independent. Busy Bee DVD says it has been approached by Netflix and by Screen Select. Meanwhile, says the paper, Dublin-based Screen Click is about to change its name to Lovefilm.ie to reflect its EUR3 million acquisition last month by LoveFilm.

The Irish Independent has a great overview of the Irish DVD rental market.

Is Netflix finally expanding into Europe?

McDonald's redbox Selling DVDs

Video Business is reporting that McDonald's $1/night DVD rental kiosk company redbox is now selling DVDs:

Each title will sell for $20. Lady and the Tramp will be bundled with coupons for three free one-night McDonald’s rentals. Narnia similarly will be tagged with freebies.

Redbox DVD vending machines are installed in more than 800 McDonald’s restaurants. This month, McDonald’s rented its 8 millionth DVD. In December alone, McDonald’s rented 1.1 million discs.

Here's an interesting bit of DVD care advice from the redbox Web site:

DO: Handle the disc by the edges. DO NOT: Touch the shiny surface where dirt, oil and fingerprints can leave residue. Do not lick. The disc is not flavored.

Apple: 15 Million Video Downloads

Apple is becoming a force in the video-on-demand business -- they sold 15 million video downloads, or about 750,000 per week (they also sold 1 billion songs, too).

The problem is that the "videos" they've been selling are movie shorts, music videos and tv shows, not full-length movies. Well, there is a special press announcement on Tuesday and there is speculation that Apple will announce full-length movie downloads. It makes sense since they have product called Front Row that will let you watch movies using a remote...

via PaidContent and MacSlash

Interesting New DVD Service: MovieKlub

MovieKlub is new service with an interesting spin on the DVD-by-mail business. The DVDs they ship to only allow for 3 plays, and you never have to return the movie -- they've solved the disposable DVD recycling problem:

There is a sticky-backed pre-addressed mailing label inside the sleeve/packaging. When you're done watching the movie and want to recycle the disc, you simply affix the label to the outside of the mailer and ship it out whenever. It goes back to our recycling center, where we guarantee 100% de-manufacturing.

The monthly service costs $24.95 and guarantees two new movie releases weekly at or immediately following their release date.

The service will launch this summer in select areas. If you sign up now you'll get your first round of movies for free.

MPAA Sues Grandmother for $150k

In another brilliant PR move, the MPAA is suing a Brooklyn grandmother for $150k because she allegedly downloaded a copy of Adam Sandler's The Longest Yard.

"How can they charge me with something I didn't do?" she said. "The movie they're talking about is absolute garbage anyway. I don't even like Adam Sandler as an actor."

In civil suits filed this week in Brooklyn Federal Court, the Park Ave. lawyers for Paramount and Columbia Pictures are threatening McBride and two other defendants with fines of up to $150,000.

via Digg

DirecTV to Offer Movie Downloads

Fool.com is reporting that DirecTV will be entering the movie download business (is there anyone left that hasn't announced a VOD service?).

Satellite TV provider DirecTV, which is partially owned by Rupert Murdoch's News Corp., has announced that it will provide a video downloading service along with its premium DVR service. Although DirecTV won't offer the broadband Internet connection that will be necessary to use the service, an article in The Wall Street Journal said that 5 million of DirecTV's customers already have broadband service anyway.