Netflix and Qwikster

Netflix CEO Reed Hastings recently announced that they would be splitting the company in two – one side streaming and the other DVDs by mail.  Along with the announcement came a heartfelt apology FOUND HERE.   The baffling part (among many others) is that they have chosen to rename the DVDs by mail side “Qwikster” and keep “Netflix” for the streaming site.   My thoughts are that the subscribers that use DVDs by mail are (more than likely) the less tech-savvy side of the population.  In other words, they wouldn’t be so inclined to visit a new website to access their DVD by mail service.   If you’re going to change (and complicate) things, why not do it to the people that can handle it?

Visit the OFFICIAL NETFLIX BLOG to see the rest of the gripes….

Here are a couple of my favorites:

 

STUDY: 32% of Netflix Streaming Users are More Likely to Downgrade their Pay TV Services

A follow-up study of Netflix Streaming subscribers by The Diffusion Group shows that 32% of streaming consumers would be willing to downgrade their Pay TV services and just use their Netflix Watch Instantly option as a way to watch TV programming.   The original study that was undertaken in 2010 showed a mere 16% of Netflix “streamers” were willing to make a move.  That’s a 50% increase in just a year.  There is that word again… “Cord-cutting.”

It’s interesting to note that TDG only interviewed Netflix subscribers.  There are other services out there (like Hulu, Amazon Instant Video, etc), so this number may not be indicative of the overall sentiment towards Pay TV services.  Not to mention, many Netflix subscribers do not even use the streaming services for any number of different reasons; whether it be their internet connection itself, poor video display capabilities or just overall lack of tech-savvy consumers.

The study also showed that the current economic situation also played into the willingness to cord-cut.  The $7.99/mo. subscriber fees are night-and-day when compared to the cost of subscribing to Premium channel TV services like HBO, Starz and Showtime.  As a result, expect to see these Premium channels dramatically increase their license fee demands to Netflix and other SVOD platforms.  Some of the cable providers have already made a move toward starting their own SVOD platform (see HBO GO), and maybe soon they’ll take a step back and not sell their content to SVOD platforms like Netflix or Hulu at all.

Regardless of who they surveyed, one glaring fact remains – consumers are starting to realize the benefits of online SVOD for the amount of readily available content.  As more and more TVs and set-top boxes are becoming internet-ready, and the younger tech-savvy generation gets even savvier, expect to see the trend in cord-cutting continue – but don’t expect to see the Cable Providers and Premium Channels standby and watch.

Read the FULL PRESS RELEASE BY TDG 

STREAMING DEAL: Miramax and Hulu

Word was released yesterday that streaming powerhouse Hulu, owned by  News Corp., Comcast and The Walt Disney Co., had signed a deal to stream hundreds of catalog films from Miramax.  The films will appear both on the Free VOD side (on a rotational basis) and their subscription based Hulu Plus service.

The deal itself is not surprising – Miramax recently announced a similar deal agreement Netflix (see that story HERE), and we may start to see more content owners move in the direction of licensing bigger films to platforms that have shown that they can make it very profitable for both parties involved.  Additionally, it has been no secret that Miramax has been trying to turn a profit on their huge catalog of over 700 films – and I would guess this isn’t the last we’ve heard of Miramax signing non-exclusive deals with streaming platforms.

Hulu is currently charging $7.99/mo. for their streaming service which recently became accessible through xBox and many other platforms.

Knowing what they’re up against, cable/internet providers like Comcast and Time Warner are more than likely a short time away from announcing their own platforms to combat the success of Netflix and Hulu and potentially the subsequent cord-cutting by the end consumer.

Better later than never: Comcast announced their plans for “Xcalibur” via their blog last week.  Here is an excerpt in their own words: “…the goal is to take everything we’ve learned from the web and tablets and bring it right back to your TV screen.”

Needless to say, it will be an interesting next couple of months.

A Pick for Memorial Day…

So, since Memorial Day weekend is upon us, I urge you to remember those that continue to fight for our freedom and those that have lost their lives doing so.  The Way We Get By, now on Hulu, pays tribute to unsung heroes who share their love with soldiers returning from Iraq and Afghanistan – strangers who need and deserve it.

http://www.hulu.com/embed/SszrA9lTm6qnwt_aJfaIkg

Will Netflix and Hulu Kill Cable?

That was one of the questions, among many others, posed at a Streaming Media East panel.  The main point of discussion was the relevance of the online viewing of Television and Film – and whether or the availability of content on these online platforms is driving viewers away from their traditional cable providers.  This is known in the industry as “Cord-Cutting.”  While the panelists tended to shy away from actually saying services like Netflix and Hulu are hurting their premium services, in reality it appears that they do feel that way. The rollout of a “TV EVERYWHERE” option (or bundling of subscription service viewing options – i.e.  TV, Mobile, and Broadband)  seems to be the logical next step for the premium content owners.  Whether or not the “TV EVERYWHERE” distribution model  is Facilitated by the MSO (Comcast’s Xfinity, for example) or the Premium Content Owner (HBO GO), doesn’t seem to matter, according to Marc DeBevoise of Starz.

The panel was moderated by All Things Digital Senior Editor Peter Kafka and featured on the panel were the following speakers:

  • Marc DeBevoise, SVP, Digital Media, Business Development & Strategy, Starz
  • Tom Gorke, SVP, Content Distribution and Marketing, MTV Networks
  • Jim Funk, VP, Business Development, Roku
  • Bryan Perez, SVP, GM, NBA Digital

Watch the video at the link below or at StreamingMedia.com

http://bcove.me/4yu39mgj

Virgil Films and Morgan Spurlock to Release ‘How to Fold a Flag’

IRAQ AND AFGHANISTAN VETERANS OF AMERICA (IAVA) WILL PARTNER IN RELEASE EFFORTS OF THE FILM ON ALL DIGITAL PLATFORMS UNDER THE “MORGAN SPURLOCK PRESENTS” LABEL IN CONJUNCTION WITH MEMORIAL DAY

MAY 6, 2011   Academy Award® nominated filmmaker Morgan Spurlock once again partners with Virgil Films to release the feature documentary “HOW TO FOLD A FLAG – A film by Petra Epperlein and Michael Tucker” under the “Morgan Spurlock Presents” brand label.  The film, which chronicles the disparate homecomings of four Iraq war veterans, will be distributed on digital platforms simultaneously beginning May 23, just in time for Memorial Day Weekend.

HOW TO FOLD A FLAG will benefit from a first time ever all digital premiere and will be available to watch instantly streaming from Netflix and via Video on Demand (VOD) via iTunes, Hulu.com and the Hulu Plus subscription service, VUDU, CinemaNow, and Amazon Instant Video along with cable VOD providers iNDemand and TVN.  In addition, a DVD release is scheduled for June 14, 2011.

Five years after filming the now classic Iraq War film GUNNER PALACE, directors Michael Tucker and Petra Epperlein turn their focus on America in HOW TO FOLD A FLAG.  They follow the same soldiers home to America, as each struggles to define their wartime experience in a country largely indifferent to their service.

In North Carolina, Javorn Drummond works at a hog processing plant at night while he finishes his college degree on a dwindling GI Bill.  In New York state, Jon Powers returns to his rustbelt hometown and decides to make a run for Congress.  Out in Colorado, Stuart Wilf, the unit’s class clown, tries to resume the life he had before the war, while moving between low-wage jobs and comforting his mother who is preparing to send another son to war.  Down in Texas, Michael Goss, a career soldier who was unjustly discharged from the Army after two tours in Iraq due to PTSD, seeks redemption in the arena as a cage fighter. And In the Pacific Northwest, the Colgan family, whose son Ben was the first Gunner killed in Baghdad, quietly keep the memory of their son alive while the 2008 Presidential Election loudly unfurls.  They went to war as a unit, but came home alone.

“HOW TO FOLD A FLAG is a film that resonated with me from the moment I first saw it,” says Morgan Spurlock.  “For us to be able to release such an important and powerful movie with Virgil Films across all digital platforms is exactly what we’ve wanted to do with this label from the beginning.  Distribution models for indie films and documentaries such as this one are continually changing.  This film is incredibly timely, and our goal is to reach the widest audience possible with this structure.  Partnering with the digital streaming output entities, the On Demand providers, the DVD retailers, and with IAVA to help with marketing will hopefully deliver this film directly to an audience that wouldn’t have seen it or otherwise been aware of it.  Traditional theatrical releases don’t always work for every film, and we are using all avenues that are available to us to distribute this amazing documentary.  No other films have taken this direct all digital release platform before.”

“HOW TO FOLD A FLAG not only pays tribute to our fighting soldiers, but it also is a plea for help to the very same people we pay tribute to,” says Joe Amodei, CEO and Founder of Virgil Films.  “Following on the heels of our successful release of RESTREPO, we wanted to continue to bring to American audiences important stories about our soldiers that need to be told.  We will forever be in their debt and HOW TO FOLD A FLAG is just one more way of paying tribute to them.  When I saw this film at the premiere, I was so moved and had to be part of its release.”

Virgil Films is partnering directly with the war veterans organization Iraq and Afghanistan Veterans of America (IAVA) to help spread the word about the film and the problems our soldiers face when they get home.

“HOW TO FOLD A FLAG is the moving profile of a generation of veterans whose homecoming stories have yet to be told,” said Paul Rieckhoff, Founder and Executive Director of IAVA.  “While Americans increasingly pay less attention to the wars in Iraq and Afghanistan, Tucker and Epperlein remind us that these conflicts are far from over.  Their story shows us that the challenges facing the 2.2 million men and women who have served since 9/11 will continue playing out on the home front for decades to come.  IAVA is proud to participate in the film’s release.”

“Eight years after arriving in Baghdad to film GUNNER PALACE–a time when news from Iraq was daily news–the public’s awareness of the realities of combat and its aftermath are at an all-time low,” says Michael Tucker, co-director.  “We are thrilled to be working with Virgil Films and Morgan Spurlock to help bring the experiences of our veterans back to the forefront of our national dialogue this Memorial Day.  America has asked much of our military; all our veterans ask is that we listen.”

For more information on MORGAN SPURLOCK’S PRESENTS “HOW TO FOLD A FLAG – A FILM BY MICHAEL TUCKER AND PETRA EPPERLEIN visit: www.virgilfilmsent.com.

Other films from the MORGAN SPURLOCK PRESENTS label include “CONFESSIONS OF A SUPER HERO”; “CLASS ACT”; and “CHALK.”