Netflix posted its third quarter earnings yesterday, announcing that it has added 1.3 million U.S. customers. The video service ended the quarter with 29.93 million paid domestic users. While Netflix’s latest figures suggest the service has surpassed HBO and Showtime in number of U.S. customers, the company’s profit margin remains low in comparison to leading premium cable networks. Regardless, stock was up nearly 10 percent following the earnings results. Continue reading Netflix Sees Spike in Subscriber Base, Profits Remain Slim

An article in MIT Technology Review this week looks at the history and trends involving content distribution and suggests that Hollywood should consider adopting methods that are similar to those related to media piracy. While efforts to combat piracy continue, some question the perceived impact of file-sharing and other techniques, suggesting the film industry might be better served by adopting new ways to distribute its content and gain potential exposure. Continue reading Should the Film Industry Embrace Piracy-Related Technologies?

Enhanced security designed to protect scripts is becoming a standard procedure in Hollywood. Filmmakers do not simply worry about piracy, but also about a script being posted online for people to prematurely lambast, potentially compromising success. The strict security measures apply to everyone, and even Hollywood veterans are subject to intense scrutiny before they are permitted to read a script about a potential blockbuster or the sequel to a smash hit. Continue reading Hollywood Taking Extreme Measures to Keep Scripts Secure

Sony Pictures Television has inked a deal to produce a psychological thriller for Netflix. From the creators of the FX legal drama “Damages,” the series is slated to begin production early next year. It marks the first time a major Hollywood studio will produce a program for the streaming video service. Following in the footsteps of cable networks such as HBO and AMC, Netflix is aggressively pursuing original content. The success of its Emmy-winning “House of Cards” could help pave the way. Continue reading Sony is First Big Studio to Ink Production Deal with Netflix

Canadian movie exhibitor Cineplex launched its SuperTicket service this summer that bundles admission to a theater screening with a digital copy of the same film, delivered electronically months later. The package costs more than twice as much as a ticket to see the movie in a theater. The company experimented with SuperTicket deals for three films: “The Smurfs 2,” “Pacific Rim,” and “Kick-Ass 2.” While the approach could be a remedy for declining DVD sales, it remains unclear whether fans will pay in advance for a digital copy. Continue reading Canadian Exhibitor Bundles Movie Admission and Home Video

In the run-up to last weekend’s Emmy Awards, a great deal was written about the nominations received by “House of Cards,” and what those nominations mean for the future of television, both as a business and as an art form. Though the show missed out on most of the evening’s top honors, the three wins it did secure still mark a turning point in TV’s evolution. While it seems unlikely that the changes in the way television is produced and consumed will be as transformational or as swift as some predict, it does seem clear that the nature of television has changed and will continue to change in several important ways. Continue reading EXCLUSIVE: Netflix, the Emmys, and the Changing Face of Television

A new study released yesterday by PricewaterhouseCoopers indicates that 44 percent of today’s consumers would prefer an a la carte system, while 73 percent note they would prefer a la carte or at least more customization of current packages. Notably, a mere 14 percent of consumers are satisfied with the status quo. However, since only 38 percent said they would be willing to pay more than $3 monthly per channel, it does not seem likely that TV providers would stray from bundling. Continue reading Cable Customers Want Change, But Seem Unwilling to Pay

Wang Jianlin, chairman of Dalian Wanda Group and one of China’s wealthiest investors, announced his plans to build Qingdao Oriental Movie Metropolis. The project, estimated to cost from $4.9 billion to $8.2 billion, would include film studios, resort hotels, an indoor amusement park, movie theaters and a hospital. The metropolis is a sign of China’s efforts to become a world leader in the filmmaking industry. Last year, Dalian Wanda acquired AMC Entertainment for $2.6 billion. Continue reading Chinese Investor Envisions Movie Themed Real Estate Project

The Motion Picture Association of America released a report yesterday that criticizes the impact of Google and other search engines on the piracy of movies and television shows. The report determined that between 2010 and 2012, search engines influenced 20 percent of sessions that resulted in acts of piracy. The largest share of search queries (82 percent) that led to infringing film and TV content URLs originated from Google, according to the study. Continue reading MPAA Study Highlights Role of Google Search in Online Piracy

At a planned event tomorrow from its Cupertino, California headquarters, Apple is expected to announce two new iPhone models — one with a faster processor and another to be offered at a lower cost. As Apple’s profit growth has been impacted by a saturated handset market in the U.S. and parts of Europe, a lower-cost smartphone could allow the company to expand into other markets such as China and India, which would also mean new potential customers for iTunes movies, TV and music. Continue reading Apple Plans to Unveil Two New iPhones, Could Help Hollywood

Kodak emerged from Chapter 11 bankruptcy this week and has a plan to keep its product in Hollywood, despite a market that favors digital imaging. While more than 75 percent of the world’s cinema screens currently support digital projection, Kodak has commitments to provide film to the major studios for production needs and distribution, deals that run through 2014 or 2015 (depending on the studio). Filmmakers such as J.J. Abrams and Christopher Nolan are using celluloid for their movie projects. Continue reading Kodak Exec Unveils Plans to Keep Film Product in Hollywood

With Labor Day the traditional end of summer, pundits survey the uneven landscape of a fickle summer. Disappointing openings and steep weekend-to-weekend drop-offs jarred execs and provided fodder for commentary and soul-searching. It may be easy to find irony in the titles of two financially successful movies — the low-budget “The Purge” and “This Is The End,” which spoofed the end of the world against a backdrop of contemporary Hollywood — to suggest that this summer truly marks the end for movies. But that would only happen if there were a total failure to recognize emerging trends, acknowledge this is not the first time Hollywood has faced a changing market and apply new ideas to shape the future. Continue reading EXCLUSIVE: Looking Beyond Summer Box Office as Trends Emerge

This year’s Silicon Beach @ USC event is scheduled for September 17-18 at the Tutor Campus Center. The event is organized by The Institute for Communication Technology Management and the Lloyd Greif Center for Entrepreneurial Studies at USC’s Marshall School of Business, and the Entertainment Technology Center at USC’s School of Cinematic Arts. Silicon Beach @ USC will feature game-changers and thought leaders from Hollywood studios, technology startups and academia. Continue reading Industry Leaders to Gather at USC for Silicon Beach Event

Online movie ticket service Fandango has entered an agreement to purchase Quantum Loyalty Solutions, a competitor that runs the popular Hollywood Movie Money gift certificate system. Studios often use Hollywood Movie Money to promote DVD and Blu-ray releases with tickets to theatrical releases. Fandango, which has been working on its own voucher system, generates revenue by processing online ticket sales and selling advertising on its site. Continue reading Fandango to Acquire Hollywood Movie Money in Quantum Deal

French video game developer Ubisoft is pushing for a more interactive television experience, one in which viewers have more control over what happens, similar to the control players have with games. As a new generation of game consoles get ready to hit the market, Ubisoft CEO Yves Guillemot hopes to join forces with Hollywood to help make this happen. Game developers say consumers have a growing appetite for new entertainment experiences. Continue reading Ubisoft CEO Envisions New Wave of Interactive Entertainment