Hacking NetFlix

Netflix's New Season of Arrested Development is Available

Netflix's new season of Arrested Development went live today on streaming... 

So, what do you think?

Ken Florance, Netflix VP of Content Delivery, to Keynote Content Delivery Summit

Dan Rayburn on the Streaming Media Blog announced that Ken Florance, Netflix VP of Content Delivery, will keynote the Content Delivery Summit. 

Taking place Monday May 20th, at the Hilton hotel in NYC, the summit has become the go-to event to learn about the technology behind web, acceleration and media delivery infrastructure. Telcos, carriers, ISPs, MSOs, major content owners and CDNs all gather to present case studies on real-world deployments, see demos of new technology platforms and discuss business model considerations for web acceleration and media delivery.

During Netflix’s keynote, Ken will highlight the company’s Open Connect Content Delivery Network and provide insight into how it works and what the future holds for delivering video via the last mile.

Netflix Signs Exclusive Deal with Disney for Theatrical Releases

Netflix announced a new and unique multi-year deal with Disney that will bring Disney theatrical releases exclusively to Netflix streaming, starting in 2016.

Pauline Fischer, Vice President, Content Acquisition for Netflix, had this to say about the deal:

I’m incredibly pleased and excited to tell you that Netflix will be bringing you exclusively, starting in 2016, theatrically released movies from The Walt Disney Company and its renowned studios, including Disney, Pixar and Marvel.  In the meantime, we’ll have an amazing selection of Disney movies including Disney classics, catalog movies, and popular non-theatrical movies for the whole family featuring beloved characters like Tinkerbell, Mickey Mouse and Winnie the Pooh, to name a few.

For us, this is a really big deal – for the first time in our largest market -  new Disney movies will be available when and where you want to watch them on Netflix rather than on a premium cable channel.  Our popular “Just for Kids” section, which is especially programmed for children under twelve, will now have such beloved Disney theatrical classics as “Dumbo,” “The Aristocats,” and “Pocahontas” and new favorites like “Beverly Hills Chihuahua” and the “Air Bud/Buddies” franchise on top of the incredible range of Disney Channel, ABC Family and Disney XD shows already available to stream on Netflix.

Thanks to Dail, Tony, Snoopy, Christopher, Kyle, Noor, and everyone else for sending this in.

Netflix's House of Cards Trailer on YouTube & Netflix Streaming

The trailer for Netflix's original series House of Cards is available on YouTube (below) and Netflix Streaming.

So, what do you think of House of Cards?

Thanks to Brian, Tom, and everyone else for sending this in.

Carl Icahn Exercises Options, Owns 9.98% of Netflix

Home Media Magazine reports that Carl Icahn now owns 9.98% of Netflix, just under the 10% that would trigger the new poison pill response.

Activist investor Carl Icahn has exercised his remaining stock options, solidifying a 9.98% stake in Netflix.

New York-based Icahn paid $154.7 million for more than 4.2 million shares, which when coupled with the 1.3 million shares purchased Oct. 31, bring the investor’s total stake to more than 5.5 million shares for $323.6 million. That's $58.4 per share, according to a Nov. 19 regulatory filing.

I never thought Netflix would have Icahn as a part-owner.

Netflix Adds American Horror Story to Streaming in US

Allie, Netflix's director of Content Aquisition, reports that Netflix has added American Horror Story to the US streaming library:

We’re thrilled to bring our US subscribers FX’s hit show, American Horror Story!  For those of you not familiar with the critically-acclaimed show, we know you’ll enjoy watching the Harmon family as they move from Boston to Los Angeles seeking relief from their messy pasts, only to find out that they have taken up residence in a house haunted by its former residents. Gripping and scary, this present-day story stars Dylan McDermott, Connie Britton, Taissa Farmiga, and many others including a performance by Jessica Lange as Constance Langdon, which earned her Golden Globe, SAG, and Emmy awards!

I'm not sure it's the best show to watch with your family on Thanksgiving, so what are you watching today?

So What Has Happened Now that Carl Icahn Owns Almost 10% of Netflix?

It figured Carl Icahn would pick the week of a hurricane and then a nor'easter to purchase 10% of Netflix, because it's caused a storm at Netflix HQ. 

First the news breaks that Carl Icahn has purchased 9.98% of Netflix, and the stock jumps. Home Media Magazine reported that a Netflix spokesperson issues a somewhat friendly statement, “We have many shareholders, now including Mr. Icahn, and we’re always open to their perspective on how to build on our success.” Very friendly, given how Icahn behaved once he had a stake in Blockbuster.

So Netflix adopted a poison pill provision earlier this week:

The Rights Plan is intended to protect Netflix and its stockholders from efforts to obtain control of Netflix that the Board of Directors determines are not in the best interests of Netflix and its stockholders, and to enable all stockholders to realize the long-term value of their investment in Netflix. The Rights Plan is not intended to interfere with any merger, tender or exchange offer or other business combination approved by the Board of Directors.

Pursuant to the Plan, Netflix is issuing one Right for each current share of common stock outstanding at the close of business on November 2, 2012. Initially, these rights will not be exercisable and will trade with the shares of Netflix’s common stock. If the Rights become exercisable, each Right will entitle stockholders to buy one one-thousandth of a share of a new series of participating preferred stock at an exercise price of $350 per Right.

Greg Sandoval at CNet interviewed former Blockbuster CEO John Antioco about working with Icahn, and he had this advice for Hastings:

If Reed Hastings were on the call with us now, what advice would you give him about dealing with Carl Icahn?
Antioco: Do the best you can of not letting him get to you. Keep your wits about you and keep your sense of humor because Carl has one too. I think Reed is a smart guy who is not prone to emotional swings. If he can keep his head about him and deal with Carl in a strategic manner and not let Carl's style control him, he'll be okay.

On Thursday evening Icahn said he was considering a hostile takeover, among other options:

Asked by TV network CNBC whether he would "go hostile" on Netflix, Icahn said: "The thought had certainly entered my mind. I have to admit I think about it, but we haven't made that decision."

While Icahn said a hostile takeover was "certainly an alternative," he downplayed the possibility several times. He added that he would not be able to pay as much for Netflix as a "synergistic buyer" looking to acquire an Internet movie and TV subscription service.

It'll be interesting to see how much Carl Icahn interferes with or helps Netflix, or if his interest in the company helps spur a purchase (and a quick return on his money). No matter what happens, things just got a lot more interesting at Netflix.

Thanks to Mike, Seth, Fabian, Matthew, Tom, and everyone else that wrote in about this story.

Netflix Streaming is Now 33% of Peak Streaming

Janko Roettgers at NewTeeVee, citing a Sandvine broadband report, reports that Netflix customer use more peak streaming trafic than HBO Go, Amazon and Hulu.

Amazon’s video service on the other hand, which is widely seen as its biggest competitor, only causes 1.75 percent of peak residential downstream traffic. Other competitors fare even worse in Sandvine’s report: The network management company sees Hulu causing 1.38 percent of residential peak downstream traffic, with HBO Go barely registering with 0.52 percent.

I'm wondering what impact a standalone Amazon Prime Video or HBO Go subscription would have on these numbers. 

Netflix Hits 30 Million Subscriber Milestone

Netflix CEO Reed Hastings announced on Facebook that they now have 30 million subscribers.

Thank you, thank you, thank you.

Thirty million of you are now Netflix streaming members. 

I’d like to express my gratitude to each of you. Your choice to be a Netflix member helps us get more content every year, and helps us further improve our member experience. You make it possible for us to offer the most amazing internet television experience ever. Thank you, again. -Reed 

When I started writing about Netflix in November, 2003, Netflix has only a few million subscribers. I never thought that Netflix would grow into one of the largest subscription services in the world.

Netflix Won a Technical Emmy Award

I didn't watch the Emmy's this year and I missed some important news -- Netflix won a technical Emmy award. Neil Hunt, Chief Product Officer, said: “Thanks very much to the Academy for recognizing Netflix - on behalf of all the people here who have worked so hard to create a great service that is revolutionizing television!”

Netflix Technical Emmy Award: Program Notes
Today, more than 30 million members regularly access the Netflix streaming service, using more than 1000 types of consumer electronic devices, viewing over 1 billion hours of TV shows and movies each month, and accounting for more than 30% of US “last-mile” Internet traffic on any given night.

Netflix users are in control. They choose what, when, and where to watch. They pause, resume, or choose something else, any time (and there are no ads to skip). They watch on TV, tablets, computers, or mobile phones. At home, on vacation, or while on the road.

The Netflix cloud infrastructure, cloud-based video encoding and encryption, cloud-based bookmarking, multiple-profile stream encryption, "Open Connect" content delivery network, adaptive streaming technology, dynamic app updates, and personalization technologies deliver the service at scale with 99.99% availability. The major patent portfolio that Netflix has developed, combined with the scale of service delivery, widespread market use of the services and the validation of an alternative business model for television distribution is changing the Television industry in fundamental ways.