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This is no serious threat to NF. Its another PPV service. Wall Street overreacted like they usually do. In a way that is good because no way is NF stock is worth as high as it is.


all these ppv offerings that are showing up online are a waste of money if you ask me why pay to watch it when you can just get the dvd from netflix. I just wonder how all these ppv offerings will last and who will win. I putting my money on Amazon.


Netflix stock took another hit when Warner announced that they would be renting films on Facebook for $3 or 30 credits.

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No risk for Netflix in my household. I never ppv movies. I use a PS3 for Neflix and a Roku for all others. The Roku has Amazon, but I've only "rented" one movie to see how it worked. I won't start using ppv until they get the price down to what I can spend picking up DVD from the local RedBox down the road. That's $1.00 per movie. (No, I don't value the convenience of the instant rental, no DVD to return, etc.) If RedBox can make a profit at $1.00 per movie, why can't the streaming ppv do it also.


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Every time a new PPV service shows up the pundits start talking about how this might kill Netflix. They just don't get it. We want a flat rate service like Netflix, not pay per view. Pay per view is what the studios want. As long as Netflix keeps giving us what we want we will not be moving to anyone's PPV service.


Yesterday some obscure analyst at Goldman Sachs reported that Facebook could be a credible threat to Netflix, and the stock took another hit.

Talk about wagging the dog! Goldman Sachs invested 450 million in Facebook. Isn't this kind of manipulation illegal?

It is beyond me how ONE movie being available on Facebook can be considered a credible threat.

Common sense people!! Netflix will never be ALL things to ALL people, but the service they offer is what most of us want. A variety of programming at a reasonable flat fee.


If it's got "apple" or "facebook" in the idea everyone freaks out that it'll trump the market.


@Mrmanmac - love the way you put things, couldn't agree more!


@Christopher "all these ppv offerings that are showing up online are a waste of money if you ask me why pay to watch it when you can just get the dvd from netflix."

First, not everyone has Netflix. But even you do, when it's a rainy Saturday afternoon and you want something recent the whole family can watch together, but your at-home discs are Big Love season 3 and No Country For Old Men, you don't have two days to wait for a DVD. Paying a few dollars for a ppv movie is cheap compared to a family's worth of movie theater tickets.


More people would use PPV if it reached price parity with RedBox, but even then it wouldn't be much of a threat. IMO the price needs to go quite a bit lower to be a threat. They'd need to get to about 25¢ per rental (40 or so rentals per month for $10) to provide the same kind of value as NetFlix. People might tolerate more for recent blockbuster movies, but that'd be the exception rather than the rule.


Oh, and as an example of what I mean - there is no *way* I'd pay $3 for The Dark Night. This is the internet; in internet time The Dark Night is ancient.


@Mrmanmac : It should be, but as an "analyst" they are covered. it's only an "opinion" with disclaimers longer than a Encyclopedia.

Netflix took few hits in the recent week, mostly due to a large number of short options. (Banks again...) and the news that competition is gearing up.

It is only normal to see competition coming in this market, but FB has a base of 600M users: it's a behemoth and has threat has be taken seriously: FB would be able to expand to new markets much faster than Netflix.
Netflix has zero sub in Europe,L.A. or Asia. Facebook has already a very strong base in those markets.

Ask yourself the following:
If you were a Studio Exec, would you partner preferably with Netflix or FB to tap those (new) markets?

I see the FB streaming attempt as a test to feel the temp of the water.
If you have a doubt about FB capabilities, take a look at this graph, it scares the sh** out of me.

Facebook time spent on mobile, UK data


This was a blatant move to depress the stock of what the movie industry considers a threat. This is not a different type of service nor even a change in PPV pricing. It was a mean spirited jab from the olde guard to the upstart.


I am a solid Netflix fan and Facebook is not part of my life. Thank G*D! Anyway, Netflix like many other companies stocks, goes up and down. This is not abnormal. All I care about is that Netflix doesn't lose focus which may translate into a slow down in bringing new videos to the VOD and the queue. But I doubt that this would happen. So for me. No worries!


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i think the world needs one place to watch movies netflix


@Steve, I would agree Facebook has indeed become a behemoth as far as the number of users, and the amount of time those users spend on their site.

Maybe it is me, but i don't get how advertisers (which is how I assume facebook makes money) expect to cash in on it's user base. Most of us go there to either post something or read what our circle of Friends have posted. I can't think of a single thing I bought, because of an advertisement. Most of my facebook time is done through my iphone app where there is no advertising at all. I would bet most of the mobile app traffic on facebook is not users logging in for hours at a time, but only a few minutes at a time.

IMO Facebook is a fad, and will soon be heading the way of MY Space before long.

Where is Netflix on that chart? I would think 20% of all internet traffic during peak hours would show up somewhere.


The real question is why anyone would choose to rent a movie from Facebook over Amazon? You first have to find the right individual page amongst many fan pages, then you have to search for where to rent the movie. There is not way that I know of to watch it on your TV short of hooking up your computer, and who is going to Facebook to look for movies to rent?

This is a boneheaded move.

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No. I don't see this besting anything Netflix offers.

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No idea what the metrics are, but I'm guessing that Facebook has tons more traffic than Netflix. Perhaps Facebook is just dipping a toe in the water with PPV prior to moving to a subscription model? It's pretty obvious to all of us that the subscription model is much cooler than the PPV model.


Much to private a person to do Facebook. I communicate with my friends trough private, invitation only, internet communities or websites.

I must have half dozen PPV options already, most of which I've never used - the Netflix and Blockbuster subscription business models make more sense to me. Can't justify the PPV with limited viewing window as anything more than a ripoff.


I could careless! I rather pick up a flick at Redbox if I want it that bad otherwise I wait on Netflix. Besides I rather watch on my big screen TV than my computer screen and no I don't want to connect my laptop to TV just for a single, occasional, movie.


One would have to assume that this is only for FB users in the US. I have serious doubts that this rental is offered world wide.

You also have to assume that this is probably an SD version with 2 channel audio. (I can't find any mention of HD or DD 5.1)

Now if this was offered world wide to all FB users then this could have an impact of NF as they start to expand overseas.




How am I supposed to view a PPV movie from Facebook? I watch Netflix from my Roku. Or I could watch it from my Pnasonic Blu-ray player. Occassionally I rent a movie from Amazon through my Roku if I don't want to wait.

My Roku (and Blu-ray) are connected to my projector through my receiver. If I were to use a web service like Facebook it would show on my computer not my projector. Currently I don't don't have any way to show a random web page on my big screen.

So will Roku add Facebook to its list of channels? Or do I need to somehow route my web pages through to my projector?

BTW this seems like a lot of trouble for one movie. What's the advantage? If they release their movies only through their PPV VOD service maybe I would pursue this but otherwise I think I'll pass.


Facebook PPV would be a creditable threat to Netflix if it offers rentals at $1. At $3, it doesn't appear to be a threat today.

Netflix Customer... for now.

Not a threat right now, but certainly could be.

I will drop Netflix in a heartbeat for any provider that will offer:

- More streaming HD
-streaming Surround sound
- better availibility of blu-ray rentals.
-subtitles or CC.


I don't care where it comes from, FB or NF or Hulu or YouTube or whatever, the problem is still spotty wifi coverage or throttled bandwidth or DL limits.

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It does appear that Facebook has overestimated it's audience here. I for one am obsessed with anything new Facebook brings to the table since it is usually a great idea. This doesn't sit well with me. Netflix and Netflix instant has the edge simply because I would rather watch the movie on my big flat screen rather than my monitor within a Facebook page.

This one could fail.


Lets see... How do I watch this movie with a Roku, PS3, or... Maybe I have to blow the dust off my nettop / boxee... Naw - Guess I'll just watch one of the thousands of items available through my netflix, hulu plus, amazon prime, or bigstar.tv memberships...
And um... What's a facebook credit?


Like it or not, like Apple and the iPad, Netflix is so far ahead of anyone in the online movie distribution business that no one is challenging them anytime soon. Hulu was the most viable candidate since Hulu, like Netflix, is a subscription service. But Hulu doesn't have anywhere near the content of Netflix. Netflix has been bullish on the streaming front and is way ahead of anyone.

The next real threat for Netflix is Amazon, who feels a little late to the game. I think most Netflix users are fairly entrenched at the moment. The "Next Netflix" will have to offer a ton of HD movies, be priced competitively, offer a library at least as big as Netflix', and will have to have way to watch new releases, even for a dollar extra. Amazon may be the one, but right now they have a ways to go.

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Warner Brothers became the first major media company to offer a movie for rent on Facebook, a move that could position the social network to become a force in the digital distribution of movies, rivaling services like Netflix and iTunes.
Warner said on Tuesday that it would allow Facebook users in the United States to rent the film “The Dark Knight” directly on the social networking site, and pay for it using Credits, Facebook’s virtual currency. If other studios make similar moves, Facebook could tap a significant revenue stream, bolstering its Credits currency as it seeks to create a rival to PayPal and other payment systems.

Chris M.

Why would I what to rent a movie I have 2 days to watch or lose after paying for when I could get a month Netflix for the cost of 3 Facebook rentals and keep my movies as long as needed. It's ironic that digital downloads have no wait time turnaround for their product but give a shorter rental period than disc based rental stores. I think we a going through a period with Big Tech that we went through with Big Steel in the beginning of the last century. They charged the consumer whatever they wanted regardless if it was a poor deal for the consumer and became ridiculouly rich by ripping off the cumstomer. We had to regulate back then to make them play fair and the reality is it's still needed now. I think the finacial market collapes is proof positive that you can't let businesses regulate themselves and do what ever they want especially when large amount of money are involve because there will always be those willing to rip others off for a bit more in their pocket. The only way I can see somebody standing behind deregulation and a lack of regualtion is that they hope to exploit many somebodies out of their cash.

Jack Mad

I was a subscriber of NetFlix in the very beginning when they didn't offer streaming video. I canceled my subscription because a new Video Store had opened up close by me; which made the process of renting movies easier. I recently subscribed to NetFlix for the second time. I love it so much I am undecided if I am even going to keep my cable TV subscription or not. After looking at what the competition has to offer; at this time and point I don't think I will be faithful to NetFlix.

Jack Mad

I meant to say I will not be UNFAITHFUL to NetFlix.

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