Venezuela has the largest proven oil reserves in the world. It was once so rich that Concorde used to fly from Caracas to Paris. But in the last three years its economy has collapsed. Hunger has gripped the nation for years. Now, it’s killing people and animals that are dying of starvation. The Venezuelan government knows, but won’t admit it!!! Four in five Venezuelans live in poverty. People queue for hours to buy food. Much of the time they go without. People are also dying from a lack of medicines. Inflation is at 82,766% and there are warnings it could exceed one million per cent by the end of this year. Venezuelans are trying to get out. The UN says 2.3 million people have fled the country - 7% of the population.

Showing posts with label Netflix. Show all posts

Wednesday, November 6, 2013

Netflix's net gains nettle networks and theater owners...

Netflix seems to be aggravating everyone but the 40 million people who subscribe to its service. The company that started as an innovative deliver-DVDs-by-mail service has become a major player in the television industry, scaring and angering competitors in the process.

This autumn has brought landmark moments for the folks at Netflix. The company has bought rights to reruns of the Showtime series "Dexter," keeping exclusive rights out of the hands of its streaming rivals Amazon Prime and Hulu.

They shook up the Emmy Awards by garnering nominations for the Netflix original series, "House of Cards" – a first for an online-only production company. They have surpassed cable heavyweight HBO in number of U.S. subscribers. And they have ticked off movie theater owners by insisting that theaters should not have the exclusive right to debut new films.

PHOTOS: Horsey on Hollywood

At the 2013 Film Independent Forum, Ted Sarandos, chief content officer at Netflix, said consumers should decide where they want to see a new movie. "Why not premiere movies on Netflix the same day they're opening in theaters?" he asked.

The theater owners' response was that such a development would be the ruin of their business. Netflix already killed off the DVD rental trade, they said, and they do not want to be the next to go the way of blacksmiths and buggy whip manufacturers.

HBO and Fox executives have also criticized Netflix, challenging the company to do as everyone else in the business does and release ratings numbers for their programs. If the Netflix original series "Orange Is the New Black" truly is as popular as Netflix claims, the cable rivals ask, why not prove it with the numbers?

PHOTOS: Billion-dollar box-office club

To that, Sarandos has sharp rejoinders. For one thing, he says, slavish attention to overnight ratings undercuts creativity. (He is a guy who buys entire seasons of shows without even seeing a pilot.)

For another, Netflix is not seeking advertisers, the people who are most obsessed with ratings. And, finally, Netflix does not need a ratings service to provide them with solid numbers; they already know exactly when each subscriber clicks a mouse or track pad to call up another episode of a show.

Netflix is playing by its own rules and, in the process, may be changing the game for everyone else.

Thank you Hollywood Reporter

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Theater Owners ‘Might Kill Movies...

Netflix chief content officer Ted Sarandos launched a blistering attack on theater owners for stifling innovation, warning in a speech Saturday that they "might kill movies."

What's more, the exec called on the owners to allow big movies to open via Netflix day and date with their release in theaters, in his keynote (see full video here, and above) at the Film Independent Forum in Los Angeles.

Addressing the ill-fated premium VOD model, Sarandos said theater owners were the problem.

"Theater owners stifle this kind of innovation at every turn," he said. "The reason why we may enter this space and try to release some big movies ourselves this way, is because I'm concerned that as theater owners try to strangle innovation and distribution, not only are they going to kill theaters–they might kill movies."

Sarandos was alluding to exhibitors' resistance in previous years to any digital release of movies that would impinge on their own windows, as when Universal nearly changed the traditional distribution strategy for the 2011 movie "Tower Heist," only to back down after considerable pressure. Studios have since largely disavowed premium VOD, though smaller independent films have been released day-and-date with increasing frequency in recent years.

But he stopped short of criticizing the studios. "I don't blame the studios for what they're doing and I don't fault them, because the studios are always trying to innovate," he said.

Sarandos turned to statistics from this summer's box office, pointing out that though more movies with a budget of more than $75 million were released this summer than any summer before, theaters saw only a six percent lift in attendance.

Just days after indicating on Netflix's third-quarter earnings call his interest in getting into the movie Sarandos went a step further today when he suggested releasing "big movies" on Netflix the same day they appear in theaters.

"Why not premiere movies on Netflix the same day they're opening in theaters? And not little movies. There's a lot of people and a lot of ways to do that. But why not big movies?"

"Why not follow with the consumer's desire to watch things when they want, instead of spending tens of millions of dollars to advertise to people who may not live near a theater, and then make them wait for four or five months before they can even see it?" he added. "They're probably going to forget."

This comes after Monday's third quarter earning's call, where Sarandos, seeing the success of original series like "House of Cards" and "Orange is the New Black," said Netflix expects to double its original programming spending in 2014 and include original movies. Though he couldn't quantify how much original series helped boost business, he said "it definitely helped." Netflix currently has more than 31.1 million customers.

Sarandos also hinted plans at a third season of "House of Cards," which is currently in its last week of shooting season two

Thank you Variety

Study: Only 14 Percent of Cable Customers Satisfied; 73 Percent Want a la Carte

PwC finds that though customers want changes, they aren't willing to pay much for them: "With TV in such a state of flux, companies must revisit their business models," says PwC analyst Matthew Lieberman.

A la carte television programming is a popular concept among consumers who presume they'd save money by ditching channels they don't watch, but given that only 38 percent would be willing to pay more than $3 per channel each month, it's not likely the idea will catch on with TV providers who aren't inclined to stray from bundling. Not at that price.

Hollywood, Take Note: Here's What TV Viewers Really Want (Guest Column)

Viacom CEO Philippe Dauman Doesn't Expect A La Carte Cable Law

A new study out Wednesday from PricewaterhouseCoopers says that 44 percent of consumers would like a total a la carte system and that 73 percent of consumers would prefer a la carte or at least more customization of packages than is currently offered. Only 14 percent are satisfied with the status quo.

When it comes down to it, though, even customers who want such changes aren't willing to pay much for them. Sixteen percent, for example, say they won't pay more than 99 cents a month for a channel they want, while 24 percent will pay $1.99 and 22 percent will pay $2.99.
At $8 a month per channel, the highest option offered in the PwC survey, only 5 percent say they'd pay up.

The survey also indicates that 57 percent would not pay more than 99 cents a month for access to an individual show each month, while 20 percent would pay $1.99 and 12 percent would pay $2.99. Only 2 percent would pay $8 a month for a show.

Despite the lowly amounts that surely would be dismissed as unfeasible by distributors and content providers alike, TV executives would be wise to note the popularity of the a la carte concept, says PwC entertainment, media and communications analyst Matthew Lieberman.

GUEST COLUMN: Hollywood, Take Note: Here's What TV Viewers Really Want

"With TV in such a state of flux, companies must revisit their business models," says Lieberman. "The winners will be those that offer custom services or curate content in the most appealing ways."
For its study, PwC also held focus groups. "I have a bunch of channels that just sit there," one participant said. "If they could take them off and lower my bill each month, that would be great."
If given the a la carte option, 65 percent say they would subscribe to 10 or more channels, the most popular being basic cable offerings, followed, in order, by premium cable, sports, lifestyle, news, premium sports and children's programming.

The comprehensive PwC report also explores ways that consumers currently watch television, how they discover new shows and the amount of advertising they're willing to view in lieu of subscription fees. In regard to the latter, the rule is simple: The smaller the screen, the fewer the number of ads viewers will tolerate.

TV online is dominated by Netflix to the tune of 63 percent, while 49 percent go to the websites of the TV networks for their online viewing, 35 percent to Hulu, 28 percent to Amazon Prime, 25 percent to iTunes and 24 percent to HBO Go. Three percent go to Pirate Bay.

Only 14 percent say they prefer a web service for their TV viewing, but 31 percent acknowledge that the availability of Netflix, Amazon, Hulu and others decreases the value of television to them.
PwC found that 55 percent of TV viewers use their mobile devices while watching television and, of those, 56 percent use them for activities specific to a particular TV show.

Lieberman said focus groups revealed that consumers want more programming guidance from TV service providers. For now, 59 percent say they find new shows through recommendations from friends or family, 45 percent through channel flipping and 42 percent via advertisements. Only 4 percent discover new shows through social media.

Not surprising, DVRs are hugely popular, with 57 percent of consumers saying they record most of their shows for later viewing. Ten percent say they engage in "binge viewing" and 7 percent acknowledge that they often record shows but never watch them.

PwC surveyed 1,008 U.S. consumers ages 18 to 59. Seventy percent of the respondents have cable TV, 41 percent have Netflix, 26 percent subscribe to satellite, 18 percent use Amazon Prime, 16 percent use iTunes and 8 percent use Hulu.

"This study shows that during the next five years, an even greater portion of viewing of and interaction with TV and film content will take place on multiple screens and devices," says Lieberman. "Hollywood must adapt accordingly."

Thank you Hollywood Reporter

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Netflix to Launch Streaming Service in Nordic Countries by Year's End...

Norway, Denmark, Sweden and Finland will follow the company's launch in Latin America in 2011 and the U.K. and Ireland earlier this year.

LONDON -- Netflix will launch its streaming video service in Norway, Denmark, Sweden and Finland before the end of the year.

Capital Research Reports 10.5 Percent Stake in Netflix

Netflix Shares Tumble as Subscriber Additions Underwhelm
The company said it would offer streaming of TV shows and movies for one monthly price late in 2012. "Further details about the service, including pricing, content and supported devices, will be announced closer to launch," it said.

About the content the service will offer, Netflix also said it will be "a wide array of Hollywood, local and global TV shows and movies, many with high-definition video and Dolby Digital Plus surround sound."

Amazon-owned video streaming provider LoveFilm, a big Netflix competitor in the U.K., is already a player in Scandinavia.

Netflix, led by CEO Reed Hastings, launched its streaming service in the U.S. in 2007 before adding Canada in 2010. It continued its rollout with a launch in Latin America in 2011 and the U.K. and Ireland in early 2012.

Some observers had predicted that Spain or the Nordic countries could be next for the company, which has cited the cost of international rollouts as a factor hurting its profitability

Thank you Hollywood Reporter

U.K. Freesat TV Venture to Offer Paid-For Content

The satellite TV venture of the BBC and ITV is launching a VOD service called Free Time.

LONDON - Freesat, the U.K. satellite TV joint venture of the BBC and commercial broadcaster ITV, said Tuesday that it will launch a VOD service called Free Time and is looking to add paid-for film, TV and music content offers from partners yet to be announced.

Netflix, Amazon.com's LoveFilm, Vevo and BSkyB's Now TV are possible partners for those offers.
On-demand TV programming via the BBC iPlayer and the ITV Player is coming to the service and will be followed by on-demand content from Channel 4 and Channel 5. Users will be able to scroll through the electronic programming guide to watch past shows up to eight days after they aired.

The service will be available via a new set top box, which will cost £279 ($443) and be available later this month.

"TV is a simple pleasure that technology can make even better, not more complicated," said Emma Scott, managing director of Freesat. "We want to help viewers find something great to watch the minute they sit down, so they can spend less time searching and more time watching the TV they love."

Freesat was launched in 2008 as a free-to-air offer to rival pay TV giant BSkyB, in which Rupert Murdoch's News Corp. owns a 39 percent stake. Freesat currently has signed 2.6 million customers.

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U.K. Commission Confirms BSkyB Has No Material Advantage in Pay TV Movies

UPDATED: The Competition Commission cited the rise of streaming video providers Netflix and Lovefilm in the field it was asked to review, but it also signaled that BSkyB may have "too much" power overall.

LONDON - The U.K. Competition Commission on Thursday confirmed its recent provisional findings that pay TV giant BSkyB has no material advantage in pay TV movies these days.

BSkyB Acquires Parthenon to Distribute Its Original Content Abroad

BSkyB Study Finds U.K. Pay TV Giant Contributes $8.4 Billion to Economy

The organization also confirmed that it would not suggest any regulatory action after in late May citing the rise of streaming video providers Netflix and Lovefilm in revising its stance from last summer.
"The Competition Commission has decided that Sky's position in relation to the acquisition and distribution of movies in the first pay window does not adversely affect competition in the pay TV retail market," it said in its final report Thursday.

But it suggested that BSkyB's has a dominant role in the broader pay TV market in the U.K. "Together with Sky's large number of existing subscribers deriving from its historical position (Sky's incumbency advantage) and the restricted geographical coverage of Sky's main historical competitor, Virgin Media, it appeared to us that these factors resulted in Sky having too much market power in the pay-TV retail market," the Commission said.

It was only asked by Ofcom to look at pay TV movies though, and on that front the Commission was happy with the level of competition. It wasnt immediately clear if any of the comments in the final report could trigger calls for a look at another aspect of BSkyB's market power.

"In its final report, the CC has concluded that Sky Movies, which currently offers the first pay movies of all the big Hollywood studios, is not a sufficient driver of subscribers' choice of pay TV provider to give Sky such an advantage over its rivals when competing for pay TV subscribers as to harm competition," the Commission said in a summary of its findings.

BSkyB acknowledged the final report in a statement. "Sky considers there to be overwhelming evidence that U.K. consumers are well served by strong competition between a growing number of TV providers, including those offering movies," it said. "As this dynamic marketplace continues to evolve, we remain committed to innovating for customers so that U.K. consumers continue to benefit from choice, value and innovation."

The agency has looked at BSkyB, because it holds film rights from the six major Hollywood studios in the first subscription pay TV window. This led competitors and critics to argue that the company, in which Rupert Murdoch's News Corp. has a 39 percent stake, has too much market power.

The Competition Commission now believes that the competitive landscape has changed with the market entrance of streaming video providers Netflix and Amazon.com's LoveFilm. As a result, BSkyB "no longer has a material advantage" over rivals, the CC said in May.

Laura Carstensen, chairman of the CC's inquiry group, said: 'We have seen significant change in pay TV movie services in the course of our inquiry and have considered the implications of these developments carefully in reaching our final views. It is clear that consumers now have a much greater choice than they had a couple of years ago when our investigation began."

She added: "LoveFilm and Netflix are proving attractive to many consumers, which reinforces our view that consumers care about range and price as well as having access to the recent content of major studios; and the launch of Sky Movies on Now TV, which ends the requirement to buy Sky Movies alongside a basic pay TV subscription, is a further significant development. Overall, we do not believe that Sky's position with regard to first pay movie content is driving subscribers' choice of pay TV provider."

Thank you Hollywood Reporter

How Much TV Is Too Much TV?

As the Television Critics Association press tour winds down -- Friday is the last day -- one mostly exciting but partly troublesome theme has been unavoidable.

TCA 2012: Jenji Kohan, Mary-Louise Parker Reflect on Final Season of 'Weeds'
There's a lot of original scripted content looking to get noticed. And the vast volume of it, growing aggressively the past few years, is making it harder for cable channels to stand out and find an audience.

TCA 2012: TV's Winners, Losers and What Was Overheard

Obviously we're in a full-blown 52-week television season with no signs of letup. What that means for viewers is that their options have increased significantly, but so has the sense that they can't keep track of it as it piles up on their DVRs. Never has it been harder for niche cable channels to plant their flag and capture the attention of viewers. And while it might be a great time to be a voracious lover of television, with options galore, for content providers there's a lot of money at stake in this original scripted Renaissance.

On Tuesday, Hulu was at TCA touting its streaming options, which include a new Larry King talk show and the continued importing of British series such as The Thick of It, Rev and Misfits, plus the Israeli series Prisoners of War, which Showtime's Homeland is based on. Hulu also has a travel series called Up to Speed, hosted by Timothy "Speed" Levitch and directed by Richard Linklater.

At the same time Hulu was here, Netflix (which did not present at TCA but likely will soon) was in Las Vegas at the National Association of Broadcasters, touting its original content. The streaming service had Weeds creator Jenji Kohan, who is making Orange Is the New Black, a series about a woman's time in a minimum-security prison; Eli Roth, who is making the murder-mystery series Hemlock Grove with Famke Janssen; and the cast of cult comedy Arrested Development, which will have a high-profile season on Netflix before making its movie. Arrested Development has generated tons of buzz, as has the 2013 premiere of the David Fincher and Kevin Spacey project, House of Cards.

TCA 2012: HBO Execs on Larry David, Aaron Sorkin and the Future of 'Game of Thrones'
Whether any of that works remains to be seen – Lilyhammer, the series Netflix got its feet wet with, is still available on the service, but there's no truly accurate way to tell how it has performed (reviews were mixed). Nevertheless, this next batch is even more content for viewers to choose from, and this time it's a lot more high profile.

On Wednesday, back at TCA, new and returning series were presented by BBC America, including the much-anticipated second season of The Hour, plus a new espionage series called The Spies of Warsaw with David Tennant, based on the books of Alan Furst. But the big push for the channel is Copper, its first original drama, created by Will Rokos, the Oscar-nominated writer of Monster's Ball, who also has written and produced for Southland. The period piece is set in 1864 New York City (Five Points, Fifth Avenue "and the emerging African-American community in northern Manhattan) and centers on post-Civil War cops. It's co-created by Tom Fontana (who will be the showrunner) and executive produced by Barry Levinson.

HBO also presented at TCA on Wednesday, but the major push was the repositioning of Cinemax, which started a year ago with the launch of Strike Back, a series that garnered a surprising amount of critical acclaim and kicks off its second season later this month.

TCA 2012: 'Copper' EPs and Cast Tout BBC America's Big Budget Scripted Original
Kary Antholis, president of programming for Cinemax (and HBO miniseries), said the plan was to "distinguish the Cinemax brand as a premium destination for entertaining, cinematic and compelling original series."

It won't be easy to get out of HBO's shadow or shake off the old "Skinemax" moniker, but Strike Back was a successful start and the channel will follow in October with Hunted, "a conspiracy action thriller set in the world of corporate espionage," starring Melissa George (In Treatment) and created by The X-Files alum Frank Spotnitz (who also helped on the first season of Strike Back). Then, in early 2013, the channel will premiere the new series Banshee from creator Alan Ball.

Perhaps to drive home how hard it is to stand out in a crowded field, the pay cable channels Encore and Starz came to press tour Thursday, with the spotlight firmly on Boss, the Kelsey Grammer series starting its second season Aug. 17. Although many critics found Boss to be compelling if uneven, the performance of Grammer was brilliant from start to finish, but he was snubbed for an Emmy (something he noted at TCA).

Starz also made inroads with the Sopranos-meets-Mad Men style of Magic City, a series that really found itself near the end of its recently completed first season. Both Boss and Magic City built on the profile the channel created with Spartacus (it has other offerings in 2013, including Da Vinci's Demons from creator David S. Goyer).

TCA 2012: Larry King On His New Hulu Show and CNN's Ratings Woes

The question is, how do these series stand out in a crowded field? How do they reach a viewing audience seemingly overwhelmed with options? There's obviously a lot of money at stake. BBC America needs to come off as more than just a retransmission service for its Brit parent. Starz has to up its game to compete with HBO and Showtime. And Cinemax has to get more series on its bench to be taken seriously as a separate, worthwhile entity from HBO.

The plus side to all of this is that there's an incredible amount of quality in the marketplace. More scripted series means more people employed, just as it means a higher profile upon success for each entity producing the shows. But none of this is going to be easy. These channels are going to have to steal audience from more established outlets, which puts pressure on channels such as Showtime, HBO, AMC and FX to keep product in the pipeline or risk losing traction – and relevance – with the viewing audience.

It almost makes you think it would be crazy to get into the scripted game. And it just might be, since sustaining this amount of content will rely on generous advertising budgets, creatively effective promotion and serious online and social media components.

We're about to find out what the threshold is for how many series dedicated viewers can keep up with. Godspeed, everybody.

Thank you Hollywood Reporter

Comcast launching new subscription VOD service

Streampix in the mold of Netflix business

By ANDREW WALLENSTEIN

Comcast is announcing a new subscription VOD service that is aimed squarely at countering Netflix but requires already paying for cable.

Streampix will launch across the nation's largest video distributor this week with movies and TV content from past seasons licensed from its own programming unit, NBCUniversal, as well as Disney, Warner Bros., and Sony Pictures.

With a business model and catalog-oriented content mix similar to Netflix and other competing services like Amazon and a coming joint venture from Verizon and Redbox, Comcast is clearly attempting to supplement its existing digital presence, Xfinity, with a long-tail-oriented offering. But Streampix is not available to those who don't already get Comcast cable.

Streampix will either be free to those who get Comcast's triple-play package of video, broadband and phone or for an additional $4.99 fee on top of other varieties of Comcast offerings.

A key differential from what Comcast already provides is that Streampix will give out-of-home access to select content across online, wireless and connected-TV platforms, including its own existing VOD assets.

Among the titles to be made available include "30 Rock," "Grey's Anatomy" and "Ocean's Eleven." The volume of content at launch, however, won't be nearly on par with what Netflix has.

Comcast is already in the SVOD business to some extent through its stake in Hulu, which has a SVOD offshoot called Hulu Plus, though is a silent partner in the venture, a concession made to get approval for its acquisition of NBCU last year.

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Netflix inks pact with Weinsteins

'The Artist' included in multiyear deal

By JILL GOLDSMITH

Netflix and The Weinstein Company Tuesday announced a new multi-year licensing agreement, their first, to make foreign language, documentary and certain other movies from TWC exclusively available for Netflix members in the U.S. to watch instantly.

"The Artist" will make its pay TV debut exclusively on Netflix rather than on traditional premium cable.

The pic, written and directed by Michel Hazanavicius and starring Jean Dujardin and Berenice Bejo, has been sweeping the awards season, including the Golden Globe for Best Picture/Comedy or Musical and Best Picture Awards from the Producers Guild of America, British Academy of Film and Television, the London Critics Circle and NY Film Critics Circle.

Also making its pay TV premiere on Netflix is "Undefeated," nominated for a 2012 Academy Award for Best Documentary Feature. Pic follows players on a Memphis, Tenn. inner-city high school football team as it attempts to win its first playoff game in the school's history.

A diverse slate of TWC specialty films will appear exclusively on Netflix within one year of their theatrical release, including World War II drama "Sarah's Key," "Intouchables," "W.E.," "Coriolanus" and "Bully."

Terms of the deal, the first between TWC and Netflix, weren't disclosed.

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Can Netflix Sell U.S. Users on Foreign Shows?

The online video giant returns from MIPCOM with a slate of foreign series, including Norwegian gangster drama 'Lilyhammer' starring Steve Van Zandt and 'Borgia' from Tom Fontana.

To all Netflix users: get ready for Norwegian gangsters, British vampires and Roman degenerates.

MIPCOM 2011: Steve Van Zandt Talks 'Lilyhammer,' Netflix Deal and the Television Revolution (Q&A)

'Arrested Development' Bidding War Breaks Out Between Hulu, Netflix (Report)

Deauville 2011: Tom Fontana Discusses 'Borgia's' Move to Netflix, Plans for Cable (Q&A)
The online video giant went on a spending spree at international television market MIPCOM last week and returns with its bags stuffed with foreign-made series that Netflix hopes will appeal to its 25 million subscribers.

PHOTOS: Netflix's 10 Most Rented Movies of All Time

They include Lilyhammer, a bilingual gangster drama starring Sopranos alumnus Steven Van Zandt as an ex-mobster sent to Norway via the witness protection program and the French/German co-production Borgia – a historic drama centered, like Showtime's The Borgias, on Medieval Rome's most nefarious family created by Tom Fontana(Oz) and starring John Doman(The Wire). Netflix has also licensed British supernatural drama Being Human, which follows three housemates who happen to be a ghost, a werewolf and a vampire.

Being Human, both the British original and Syfy's U.S. remake, have appeared on American screens before, but Lilyhammer and Borgia will be Netflix premieres.Together with House of Cards, Netflix' upcoming remake of the BBC drama starring Kevin Spacey and directed by David Fincher, they mark the company's push into original, first-run drama series. Netflix has already committed to a second season of both Borgia and Lilyhammer, suggesting its taste for original and foreign-made fare is no passing fancy.

At the moment, the company is also in a bidding war with Showtime and Hulu for the rights for the relaunch of cult comedy series Arrested Development. The series, cancelled after three seasons on Fox, will return for a limited run series intended to set up a feature film version of the show.

STORY: Netflix Stock Hits 52-Week Low After It Cancels DVD-Streaming Split

"Netflix can go after non-exclusive content, which is more of a commodity, or they can try to pursue exclusives and originals, which bring a higher risk," said Janney Montgomery Scott analyst Tony Wible in explaining the pros and cons of original fare. "The problem is there is no more exclusive content to be had. They have to make the exclusive content now" - or find it overseas.
That is moving the company into new territory though. "Netflix is used to buying stuff based on previous release information and data collected from their users," said Wible. "They can try to use that here, but that's not a guarantee for success."

Speaking at MIPCOM, Netflix chief content officer Ted Sarandos said the company's shift to original series was in part a reaction to customer demand. He pointed out TV shows account for 50-60 percent of total viewing on Netflix.

With Netflix' high-profile content deal with Starz set to expire in February, the company needs new, fresh shows to feed user demand, and analysts say it has started to redeploy money it would have spent on a Starz renewal. The Starz deal cost Netflix $30 million a year, but a renewal was expected to cost multiples of that.

"We've moved very aggressively into this space," Sarandos said. "The growing audience for these 1 hour serialized dramas is typically on pay TV: Showtime, HBO or Starz, those ones who are least likely to want to sell their shows to me on our (second-run) season-after model. So we have to develop the muscle to create and distributing these shows ourselves."

Sarandos said the company would not be spending much on traditional marketing and promotion for its first-run series, instead relying on its patented algorithms to put Borgia and Lilyhammer in front of users most likely to want them. So Lilyhammer might be recommended, say, to fans of the Sopranos. Netflix used that tech-driven strategy successfully with Starz' Spartacus, pitching the series first to fans of the movie 300.

"It's kind of the opposite of launching a movie where you try to get it into as many theaters as possible and get as many people in the seats the first week and you have 50 percent fall off the second week," said Sarandos. "We're doing the opposite – building it on the basis of people who love the show. And then they'll tell their friends and the algorithms will also influence and put the show in front of more people."

Analysts said they expect Netflix to stay focused on its recommendation feature, even though it could experiment with additional approaches. "There is no appointment viewing on Netflix now," said Lazard Capital Markets analyst Barton Crockett. "So, the customized view you get right now will be the main way to promote new series as well. And they'll probably send you an email when an original series that you may be interested in is online."

Added Michael Pachter, analyst at Wedbush Securities: "I don't think they will market much differently than they do now." But he expects viral marketing of original or exclusive fare to "drive more loyalty to Netflix."

No one expects Netflix to launch a special section or channel for its original fare online.

"I think with this ability to zero in on people's taste you can get around all of the pre-conceived prejudice about what works in terms of TV content," said Sarandos. "Like can content be subtitled, does it have to be in English, can they have accents? Lilyhammer is a great example of a show that would be very difficult to break into the U.S. market because of the pre-conceived of buyers. And I think it is going to be very successful… It's been proven that selling Hollywood to the world is a big business. But I think the world to the world is an even bigger business."

Sarandos added that Netflix can also afford to be more flexible in how it releases a show, suggesting the service could premiere several episodes at once, allowing fans to "binge" on their favorite series, much like buyers of DVD box sets.

"The Netflix approach is ideal for a show like Lilyhammer," says Jens Richter, MD at SevenOne International, which handles international rights for the series. "In the traditional broadcast space it's always about the short-term ratings. If the ratings aren't right, the show's canned after 4 or 5 episodes. Netflix is more about brand building, building a subscriber base."
Adding original or exclusive series also puts on notice other online content providers, according to analysts.

"Content still is king and the best way to maintain a content distribution franchise is to ensure that it delivers content no one else can," said Forrester Research analyst James McQuivey. "You can either shoot for blockbusters a la HBO and Showtime -- which Netflix is doing with Spacey's $100 million deal -- or you can shoot for broad selection that means something in aggregate, which the company also appears willing to do."

While he said he "can't really explain what Netflix sees in its data to suggest Lilyhammer will succeed," he and other analysts said the investment in foreign fare could be a low-cost play with potential upside.

"Netflix needs content, period," explained Pachter. "I can't say that two shows will make a meaningful difference, especially U.S. rights to foreign shows, but they probably didn't spend much on them."
All of this puts Amazon and Google on alert: Netflix intends to stay relevant in the video business even as its original strengths become commonplace strategies. If I were Apple, I would just buy Netflix right now before its stock gets any higher!

And indeed Sarandos calls Lilyhammer, Borgia and House of Cards experiments to test what Netflix users want. "At the moment this (budget for first-run series) is a very large commitment but it is very small relative to our content spend…if the take up is good we will increase the spend," he said.
But Lazard Capital Markets analyst Barton Crockett sees challenges for Netflix's push into original series, including ones from abroad. "There is a big question whether they can gather an audience for new shows," he said. "It's different from what the service has been, which has been focused on movies and TV shows people recognize. It's another thing to log in and see a promotion for House of Cards, which you have never heard of or seen before."

Sarandos seems to have anticipated this problem. For their original series, Netflix' focus is more on access than exclusivity, he says. Sarandos points to Australian tween mermaids series H20: Just Add Water– a Netflix hit – as an example of an international show "that just wasn't getting distributed under the old method."

Even with Borgia, a $35 million production, Netflix will only have exclusive streaming rights for North America, meaning the Tom Fontana series could still be aired on a traditional pay TV or cable broadcaster.

"It's non-exclusive, which at first seems strange but it could make sense for Netflix," says Eric Welbers, managing director of Borgia's sales outfit, Beta Film. "Having the show on another channel could drive more users to it on Netflix, if they missed an episode or want to catch up."
Observers have in recent months often compared Netflix's push into original fare to premium channels, such as HBO, Showtime and Starz. But Crocket said the comparison isn't quite fair. "Netflix's investment in originals is so far from HBO - like Pluto from the sun," he said. "It's a different orbit. It's a totally different zip code. It's something that's not at a level that's meaningful yet."

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Netflix Stock Tanks; U.S. Subscriber Base Loses 800,000

UPDATED: The company's third-quarter results are the first look at its financial situation since a series of controversial moves sent its shares reeling.

Netflix lost 800,000 U.S. subscribers in the third quarter, about 210,000 more than the company had projected, and the stock was off $32 in after-hours trading as a result.

Netflix's Reed Hastings Hasn't Considered Stepping Down, 'Not for A Second'

The company's subscriber metrics were released Monday along with quarterly earnings, which were better than analyst expectations. The company earned $62.5 million, up from $38 million a year ago, on revenue that rose 49 percent to $821.8 million.

STORY: Netflix Yanks Plan to Separate DVD-By-Mail From Streaming Service
Netflix shares rose 2 percent to $118.86 during the regular session but were down 27 percent after the closing bell.
The company's shares had already lost 60 percent of their value since July when the company announced a large price increase for subscribers who want both streaming and DVDs. The stock took another hit after CEO Reed Hastings announced he'd split the company in two, calling one half Qwikster, but then reversed that decision days later.
If after-hours action is to be believed, Netflix shares could open in $85-range Tuesday morning, which would represent a fall of 72 percent in three months time.
STORY: Winners and Losers of Netflix's Aborted Qwikster Plan
During a conference call Monday, analysts peppered Hastings with questions about the price increase, Qwikster, the rising cost of acquiring streaming content and other developments that have decimated the stock lately.
Hastings said the company lost more subscribers than anticipated because "a second wave of cancellations" occured in September and October once consumers got a look at the price increase that was announced in July, which was when the first wave of cancellations took place.
Of Qwikster, said Hastings: "In hindsight, it's hard to justify."
Hastings predicted "a slow decline over the next many years for DVD," even comparing it to the AOL dialup service from 2002 through today. In a 17-page letter to shareholders that included quarterly financial results, Netflix said it doesn't anticipate any further material investment in property, plant and equipment to support the DVD side of its business.
Ahead of its earnings announcement Monday, Netflix announced its intention to launch a service in Ireland and the U.K. next year. Some analysts suspected the timing was intended to counter a negative financial report.
PHOTOS: Hollywood's Biggest Blunders
Netflix added Canada to its lineup last year. Last month, it added 43 countries in Latin America and the Caribbean. International subscriptions increased from 970,000 in the second quarter to 1.5 million in the third quarter.
Domestically, though, Netflix ended the third quarter with 23.4 million subs, down from 24.6 million in the second quarter.
Netflix said that "for a few quarters" starting in the first quarter it will not make a profit because of its push into the U.K. and Ireland. "We will pause on opening new international markets until we return to global profitability," Netflix said in its letter to shareholders.
The letter also boasted of recent content deals with DreamWorks Animation, Open Road and The CW, and it noted that the new Johnny Depp film The Rum Diary, as well as the stylish action flick Immortals will be available to Netflix subscribers exclusively in the pay TV window. (The letter, though, gets both titles slightly wrong).
The letter also seemingly defends Netflix's decision to soon end a relationship with Starz rather than renew it at a substantial fee increase -- or perhaps the passage is a negotiating tactic. "An Oscar-nominated film may be of less value to Netflix subscribers than Pawn Stars, because subs are watching the reality show more than the Oscar-nominated movie," the letter states.
"We have the Starz offering within our service, and it is currently running about 6 percent of viewing hours because we have added so many other movies and TV shows," says the letter. "In other words, 94 percent of the time members stream from Netflix, they are watching a non-Starz title."

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Netflix Price Increases Take Effect yesterday...

Customers who use streaming video and get DVDs by mail may see 60 percent price hikes.
Netflix's long-planned price changes went into effect today, meaning the company's many customers who subscribe to the $9.99 a month plan for one DVD and unlimited streaming will be seeing a 60 percent price increase.
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In July, Netflix announced it was phasing out the $9.99 a month plan in favor of two separate plans: one for unlimited streaming for $7.99 a month and one for one DVD at a time for $7.99 a month. Customers were notified by e-mail that unless they actively made a change to their subscriptions before September 1, they would be enrolled in both plans.
A survey in July of nearly 1100 Netflix users by Wedbush Securities found that 22 percent planned to cancel their Netflix subscriptions and migrate to Hulu, Redbox and Amazon's streaming video service.

Other companies that have been struggling recently, like Blockbuster, are jumping at the chance to scoop up new customers. The company sent out taunting tweets such as "Dear Netflix, we're offering special prices & 30-day trials of Blockbuster Total Access to your members."
And rumors abound that Amazon, which bought the European version of Netflix, called Lovefilm, at the beginning of 2011, may be planning to migrate the service into the U.S. sometime soon.
It's still too early to tell how Netflix's price hike will affect the company, but comments like this one from @eliasdylan may leave executives nervous: "After 5 yrs I have canceled the disc part of my #netflix account. Don't think streaming will live up to Blu-Ray. Might cancel all next month."

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Amazon Instant Video Streaming Service Now Offers More Than 100,000 Movies...

Recent content deals with CBS Corp. and NBCUniversal have also expanded the lineup of Amazon Prime as the e-tailer competes more aggressively with Netflix in the streaming video space.

NEW YORK - Amazon.com said Thursday that its iTunes-type Amazon Instant Video service now offers more than 100,000 movies and TV shows, while its subscription-based Amazon Prime service has more than 9,000 movies and TV shows available for streaming.

The Amazon Prime content milestone was reached based on previously announced content deals, such as ones with CBS Corp. and NBCUniversal.

Meanwhile, Amazon Instant Video has content from all major studios and networks and regularly adds more titles as they become available. Earlier this summer, Amazon had reported that Amazon Instant Video had 90,000 content items available.

Amazon, led by CEO Jeff Bezos, has been expanding its streaming video programming lineup as it has competed more aggressively with video streaming powerhouse Netflix.

Amazon Instant Video offers new releases and classics for purchase or rental on an a la carte basis starting at $3.99, while Amazon Prime is a $79 a year shipping service that has been packaged with video offers.

"We are focused on offering our customers the very best selection and are always working to expand our already extensive list of great video content," said Steve Oliver, director of video at Amazon. "The 100,000 titles on Amazon Instant Video range from new hit blockbusters to old favorites, with more than 15,000 of those titles available in HD, and popular TV shows available the day after they first air."

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CRTC: Canadians Love Their Digital Devices...

Canadians are increasingly watching TV on their smartphones, tablets and online as U.S. digital giants like Netflix, YouTube and iTunes move north of the border.

TORONTO -- Now we know why Netflix, YouTube and iTunes are breaking for the Great White North: Canadians are watching TV shows on their digital devices in droves.

Commercial concerns dominate CRTC ruling

Netflix Canada cheaper than U.S. service

The CRTC, Canada's TV watchdog, in an industry survey reports 24% of English-speaking Canadians and 20% of French-speaking Canadians in 2010 watched some TV programming online, including newscasts, sports clips and popular U.S. and Canadian TV shows.

"This trend is expected to continue as these services give consumers the flexibility to catch up on the television shows they have missed, at a time and on the device that is most convenient," the regulator said.

The CRTC predicted that online viewing traffic on Canadian Internet networks will quadruple from 2009 to 2014.

Mobile video streaming is driving the growth: the regulator estimates that, between 2010 and 2014, the number of Canadian wireless subscribers will grow from 25.8 million to nearly 30 million, with half using a smartphone that can connect to the Internet and social media.
The CRTC report is not just about cheerleading about Canadians being digitally savvy.
The regulator insisted it needs to know the TV viewing habits of Canadians online, or on mobile phones and tablets, to ensure it can maintain shelf space for homegrown content.
"In this new digital world, regulators will be faced with challenges, particularly as they pertain to maintaining the currency and flexibility of existing laws," the CRTC warned in its report.

"In order to understand where regulations may become ineffective or result in unintended consequences, it is critical to examine the trends that drive convergence, alter business models, and change consumer behaviours—particularly those related to media consumption—and any other issues that concern consumers," the report added.

The CRTC has faced calls from domestic TV producers and broadcasters for the regulator to force Netflix to subsidize homegrown TV production as it continues to expand into Canada.
Netflix is considered the canary in the mine as the Canadian TV industry deals with a wall of U.S. digital content coming across the border and aimed at digital devices – and all unregulated by the CRTC.

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Wednesday, November 6, 2013

Netflix's net gains nettle networks and theater owners...

Theater Owners ‘Might Kill Movies...

Thursday, October 31, 2013

Study: Only 14 Percent of Cable Customers Satisfied; 73 Percent Want a la Carte

Friday, October 12, 2012

Netflix to Launch Streaming Service in Nordic Countries by Year's End...

Saturday, September 8, 2012

U.K. Freesat TV Venture to Offer Paid-For Content

Saturday, August 25, 2012

U.K. Commission Confirms BSkyB Has No Material Advantage in Pay TV Movies

How Much TV Is Too Much TV?

Tuesday, February 21, 2012

Comcast launching new subscription VOD service

Comcast launching new subscription VOD service

Streampix in the mold of Netflix business