Criterion Collection Drops Netflix Streaming for Hulu Plus

In a surprising turn of events, the Criterion Collection has dropped Netflix streaming for an exclusive deal with Hulu Plus:

Starting today, there are more than 150 of our most important films online on the Hulu Plus subscription service. Over the coming months, that number will swell to more than 800 films. For the true cinephile, this should be a dream come true. On Hulu Plus, you’ll find everything in our library, from Academy Award winners to many of the most famous films by art-house superstars like Ingmar Bergman, Akira Kurosawa, and Federico Fellini to films so rare that they have never been seen in the U.S. in any medium. Some of these lost gems have been so hard to see that even most of the Criterion staff will see them for the first time only when they go live on Hulu Plus! Each month, we’ll be highlighting a mix of programs, centered on themes, directors, actors, and other creative artists, as well as celebrity picks, and mixing them with deep cuts from the catalog that will be unknown to all but the most prominent cinephiles in the world.

What's really interesting is the reason they went with Hulu Plus over Netflix:

We love Netflix, and they are still one of Criterion's most important partners, but Hulu demonstrated a real commitment to the Criterion brand that persuaded us they would be the better home base for our streaming efforts. It has never been easy to find Criterion movies on Netflix — "Criterion" is not even a searchable term there. Compare that with Hulu's willingness to develop a whole area of their site around us, brand the films associated with us, and develop the capability to show many of our supplements alongside our films. The energetic, independent, creative team at Hulu was willing to build their business around us in a way that just wasn't in the cards anywhere else. 

 We chose to make a deal with Hulu because we feel the Criterion brand will in the long run be better represented there. As we put up more films and and our supplements too - which have to be made available with the films - we felt that the treatment of the brand and flexibility within Hulu and Hulu Plus would enable us to provide a better user experience at the end of the day. We will continue to support Netflix on the package goods side and continue to work with them to provide Blu-ray and DVD copies of the films we release, but all of the films that are currently on Netflix streaming will be down by the end of the year. In case you're curious, we're as committed as ever to the physical goods side of our releases and will publish more DVDs and BDs this year than ever before.

What do you think of Netflix streaming losing the Criterion Collection?

Thanks to Julian, Daniel, and everyone else for sending this in.

Comments

[blah]

Too bad Hulu Plus doesn't work worth a damn on the PS3.

[BP]

And Netflix's ego takes its first toll.

[david v]

well, i think with netflix being content to stick by their criterion dvds & not buy the fantastic blu ray restorations criterion has been putting out, i think they've made it clear where they're headed as a company.

that said, i'll miss the criterion collection being available on streaming. arthouse films by mail can sit there until you're in the mood to commit to watching film that requires you pay attention.

which is why streaming is so great, and it's disapointing there won't be that wide range of films for whatever you're in the mood for. but i guess it's easier to replace television the more you start to think and act exactly like those who run television.

[Seth]

"It has never been easy to find Criterion movies on Netflix — "Criterion" is not even a searchable term there...The energetic, independent, creative team at Hulu was willing to build their business around us in a way that just wasn't in the cards anywhere else."

Ouch ouch ouch. That is a huge win for Hulu and a shocking upset against Netflix.

But really it's not surprising. Netflix has never been very good at supporting its content on streaming. How many times have you seen a film labeled as a "director's cut" on streaming only to find that it was the regular version? And then watched as it took Netflix months to simply label the film correctly?

Does anyone at Netflix love movies anymore? Seems like it's a commodity business to them these days. While I doubt Hulu's move is much more than a feather in their cap - yes it's true most people want to watch The Proposal and not The Passion of Joan of Arc - it's still a huge perceptual win for Hulu.

[Duke of Omnium]

This is a big thing. I'm about to lose 1/3 of my streaming queue.

[Jon]

"we will continue to support Netflix on the package goods side and continue to work with them to provide Blu-ray and DVD copies of the films we release"

Um what Criterion Blu rays on Netflix? Netflix never gets them anyway

[Kim]

You have to wonder why Netflix rates went up. Weren't they supposed to be adding more titles for streaming not losing them?

Once the instant Criterion titles leave I am seriously considering going on a limited plan. They were one of the main reasons I was so happy with Instant Netflix.

[bill]

hey blah, why do you say that about hulu on the ps3? I was considering signing up because of this announcement, what's the problem with it?

[Eric Spiegel]

I've been supplementing my Netflix plan with Hulu Plus the past few months now and that seems to be working out in my favor. The two together are still cheaper than paying for cable.

[Seth]

Looks like Netflix has now added the ability to search by "Criterion."

Man, that is a serious admission that Hulu and Criterion just schooled them hard.

Geez, I don't know. Have all the accolades gone to Reed Hastings' head or something? Where has Netflix been the last year or so? I guess it's a good thing Hulu is out there putting the pressure on because Netflix certainly isn't listening to customers, that's for sure.

Reed, you once said in Wired:

"Howard Schultz talks about building the brand one cup at a time. I'd love to be Howard Schultz. As Starbucks is for coffee, Netflix is for movies."

Well, you must know that Starbucks went through a very difficult period after coasting for awhile and Schultz returned as CEO to help the company gets its mojo back. I'd be offering a seat on your board to the guy and hitting him up for insights. Maybe you guys can't hear us but maybe you'll listen to someone who's been there.

Then again, your profits and valuation have never been higher and maybe that's what it's all about. But if you ask me it looks like the seeds are being planted for some tougher road ahead. What happened to the old and nimble Netflix?

[Pete]

Id like to see Netflix's quality for streaming get better and better. I like TV shows but Im first and foremost a film buff, so Id like newer popular titles and older classics to watch. I like Criterion alot but not so much Im going to order Hulu because of it. If I want to watch a film that bad Ill just rent the DVD.

[Rhayader]

Damn, that's too bad -- although the rationale given by Criterion makes perfect sense. Anybody know where I can see a list of titles that will be expiring because of this?

[Jorge]

This is terrible. My queue has a bunch of Criterion movies too.

[rjejr]

It's interesting that Hulu PLUS (the paid service, not the free) gets these movies after all the TV shows NF is getting. It's like real competition (capitalism) at work.

Couple of things I'm curious about - commercials during the Criterion films on HP?
Here's the last paragraph of that release which obviously excludes any mention of ads -
And finally, why Hulu? In short, because they get it. As their regular viewers know, the Hulu user experience is exactly what it should be: simple, elegant, and focused on the content. Hulu has built their brand on letting the shows and movies take center stage. Nobody does it better, and we’re honored that they see Criterion as a good match for their audience. We’re going to do all we can to make the experience of Criterion on Hulu Plus an exciting adventure for all of us, so please check it out and let us know what you think. (For more details on how it will work, here’s a blog post by Hulu’s Eugene Wei.)
-Sorry, but Ican't imagine people who want Criterion want commercials.

Will NF start streaming the extras? I got the impression this was a reason for Criterion going with HP, to stream the extras. NF really should add some. I think Kevin Smith commentaries are a big plus for his fanbase.

[rjejr]

Disregard most of what I wrote above - commercials will be before the films for Plus (during for rotating free views), and since I wrote I was for this yesterday, well I can't be hypocritical now. Might be a sign of good things to come for Plus, less complaints if all ads are up front.

[Ben]

From PC World: "The films [on Hulu Plus] will be uninterrupted by commercials, which will only roll before the movie starts. The free version of Hulu will get some Criterion Collection movies on a rotating basis, but they will be broken up by ads." Though I agree, few would want to watch Criterion with ads.

My Netflix-advocate stance slips a little with each of these missteps. Get it together and make yourself a true competitor to cable, already.

[Mike]

I wish Hulu Plus would put the ads at the beginning on all their shows, that's the main reason I cancelled.

You can't fast forward through them so they will still generate the same revenue.

[The Truth]

Every Netflix story has been them fucking up for over a year now. They may be getting more successful, but I grow increasingly frustrated. Looks like I will have to cut back my Netflix to make room for Hulu.

[Julian]

Netflix really screwed up on this one.

And I've got some criterion watching to do before it all expires!!!

Or I might actually get Hulu Plus once they've got the full collection up there.

[Steve]

This is really a blow to Netflix. And I have a feeling that the people at Netflix might not have fully understood the symbolic significance of what they were doing, they mistake they were making.

Oh, their data probably showed that these weren't Netflix gold standard titles, but this is what they missed: Criterion titles had great value to their brand, to how people perceived the netflix portfolio. It enabled subscribers and potential subscribers to know that along with all the commercial chazerai, along with Porkies IV, there was another place where you could find one of the great classic film collections.

This is a great blow to a brand that has pretensions toward comprehensiveness and, deserved or not, sends a message that Netflix isnt to be taken seriously.

Finally, and to be really cynical, Criterion was a way for them to buy some serious respectability, which they have just jettisoned.

Forgive them Clouzot, for they know not what they do.

[TZ]

one word.

meh.

[Steven Hoober]

> What do you think of Netflix streaming losing the Criterion Collection?

There is still a limit to how many BS fees I am gonna pay. I am not going to pay for Hulu plus, or any other fifteen services so there's that.

This will continue to be true. Exclusive deals will not be getting my money. I don't want to pay fees, and don't like having to search multiple repositories for info. Enough.

[Purpleslog.wordpress.com]

Perhaps, netflix should allow customers to add tags to movies (ala flickr) and allow customers to meta-moderate the tags (ala SlashDot).

They could enlist there community todo the work this way.

Maybe they could give an extra free-by-mail-dvd rental each week or months by draw (1 chance - 1 unique movie tagged by a customers).

Abusers (noted by tag meta-moderation) could just have there tagging rights revoked.

[F Yo Brand]

What the fuck is Criterion and why the fuck would I care at all about the Criterion "brand." This is the dumbest shit I have ever heard. Nobody is going to be searching "criterion" on Hulu or Netflix or any other content aggregator, period.

[HeMan]

Oh please I doubt anyone of you guys will watch these movies.

[Walter Underwood]

Criterion's complaint about search is silly. If it wasn't a search term on Netflix, that was because almost no one used it for search. Probably only people who work for Criterion use that.

Really, do I want to watch Seven Samurai and 3 Women because they are both from Criterion? Do I search for them that way? No.

Criterion did this because they got boatloads of money out of Hulu/NBC. Whenever the number leaks, I'll be watching Hacking Netflix to find out.

Still, it is a big loss for Netflix Streaming. Lots of great movies, even if I don't think I'll watch 3 Women a second time.

[HeMan]

And just where does it say that Netflix is losing the Criterion Collection? NO SUCH THING!

[ScottZ]

I don't understand what the heck "Criterion" is either. Sure looks like they have some quality content though http://en.wikipedia.org/wiki/List_of_Criterion_Collection_DVD_and_Blu-ray_releases

[ScottZ]

I feel that announcements like this are inevitable. The content owners eventually will move into Netflix's role in the industry, they will charge obscene rates and piracy will live on.

[Knaldskalle]

Bummer. The Criterion Collection deal with Hulu Plus is exclusive, so the streaming titles will disappear from Netflix within the year. Another step back for Netflix. The last year to year-and-a-half have been nothing but bad news.

[Seth]

"Really, do I want to watch Seven Samurai and 3 Women because they are both from Criterion?"

Uh, yeah.

Do you know what Criterion is and why it's such a big deal that Hulu is adding their movies and the extras?

[cz]

"Criterion's complaint about search is silly. If it wasn't a search term on Netflix, that was because almost no one used it for search. Probably only people who work for Criterion use that."

I'm sure many filmie types have. I know I have. It would be a quick way to get a list of titles highly regarded by film scholars and such. Piecing together all the Criterion titles was very cumbersome. Last time I tried the search (prior to today) something like 5 titles showed up.

That said, one of the best things about Criterion is special features. Without those the significance of the Criterion brand mostly absent for streaming. If Hulu+ is really offering special features maybe this will be the kick in the butt Netflix needs to do the same.

[kk]

dont care. never watched one from their collection, probably wont.

[Rhayader]

never watched one from their collection, probably wont

Uhh, yeah, BS. Did you look at the list posted by ScottZ? Everything from This is Spinal Tap to Silence of the Lambs to Robocop. I'd have a hard time believing anyone can't find at least a few movies they like in that list.

[Julian]

This does bring up the issue of search on Netflix. . . not only on their website but also on the Roku.

I'd like to be able to search for more than just titles on the Roku.

[MIke]

Personally, I will not be adding Hula Plus just to get the Criterion collection on streaming, but I will by necessity need to change my viewing habits to make less use of Netflix streaming and more use of Netflix rental discs.

This is actually the second time in three months that this has happened. Around the first of December, about 20% of my streaming queue disappeared in one day. I think that it was BBC or PBS-related items that vanished.

Netflix may have a pre-eminent position in the rental disc market, but it is doing a poor job with streaming video. A new competitor (Hula? Amazon?) could take this market away from them with a little effort. I agree though with the poster above who said that streaming video did not make economic sense if one needs to subscribe to 15 different services to get all the movies that are out there.

[BP]

@ Mike

Actually, if you take into consideration Reed's "Starbucks" comment from a while back, they're doing exactly the sort of job with streaming video that they want to be doing.

Now, I agree with you that it's a poor job. I also think Netflix appear to have lost the plot. But, in the context of Reed viewing Netflix:Movies in the same light as Starbucks:Coffee, then what Netflix is doing makes perfect sense.

Just like Starbucks, though, Reed's going to wake up one day and find that, despite his stock still pulling its weight, his name and his company's name have become dirty words. He'll wake up soon after that and find that because of, not in spite of, his company's direction he and his company have now become a victim of their own success and of not having a clue at all as to why they were ever successful.

So, to wit, if pulling a Starbucks is what Reed wants, it's what Reed will get. Meanwhile, I'll continue, as I have for nearly a decade, buying my coffee from Peet's, with the occasional dabble in other renowned regional or local roasters. Millions of people have joined the coffee revolt against burnt, high-priced coffee made with an attitude. You might think this analogy would paint Comcast and company as the overbearing nation-dominating monopoly - Starbucks - but you'd be surprised just how fast the underdog can become the corrupt dictator he replaced.

Of course, I could be making something out of nothing, and this is all part of a grand strategy or Reed believes that the Criterion Collection isn't all that big of a deal. Shrug. He could be right. We'll have to wait and see. All I know is that by overpaying for Epix, losing the Criterion Collection, Starz coming up for contract negotiations and competitors willing to bend over backwards to accommodate content producers, Netflix have put themselves on the back foot in a very, very bad way.

Pinkies out, gentlemen.

-BP

[Gir]

Average Joe won't care about most of the Criterion titles, and won't care one iota that they're owned by Criterion. This may be a big deal to cinephiles, but for NetFlix's main customer base - meh.

[IND]

It's easy to read this story and bash Netflix for screwing up but if, before any of this happened, someone had posted a story theorizing that Netflix would lose Criterion if they didn't "feature" them somehow, how many would have agreed? You wouldn't have known one way or the other. How do you know Netflix did? Maybe the real story is that Hulu backed the money truck up to Criterion's door.

[Edward R Murrow]

For those of you who aren't sure of what the Criterion Collection is or thumb your nose at the Criterion Collection then you probably haven't seen some of the best films ever made. For the Criterion Collection, Akira Kurosawa is worth the price of admission by himself. Kurosawa was an f'ing genius!