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Netflix Strategy Takes Root, Numbers Surge in Fourth Quarter

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January 25, 2013

Netflix has been through some well-documented ups and downs, but for those who still have doubts about the company, Netflix had a resounding answer this week: 27.15 million. That’s the number of American homes that presently subscribe to the streaming service, a number exceeding even the company’s own expectations for the fourth quarter of 2012. Continue reading Netflix Strategy Takes Root, Numbers Surge in Fourth Quarter

Kickstarter Crowdfunding Leads to Oscar Nominated Films

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January 23, 2013

While Kickstarter has gained much attention for its successful funding of consumer products like the Pebble Watch or the Ouya gaming system, much of its crowdfunding has gone into creation of the arts. “Kings Point,” “Buzkashi Boys” and “Inocente” have become the fourth, fifth and sixth Kickstarter-funded films to earn Academy Award nominations. Continue reading Kickstarter Crowdfunding Leads to Oscar Nominated Films

Will Verizon Take on Netflix and Others with its own Streaming Video Service?

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December 7, 2011
  • Verizon is planning to launch a standalone video streaming service for 2012 that would offer movies and TV shows via the Web, according to several people close to the plan.
  • “The phone company is talking with prospective programming partners about the service, which would be introduced outside of markets where it currently offers its broadband and TV package, known as FiOS, these people said,” reports Reuters. “That would make it available to some 85 million U.S. households.”
  • Verizon may be concerned about cord cutters and competition from Netflix, Amazon and Google.
  • “Verizon has been back and forth with programmers over the last two years exploring the possibility,” suggests the article. “While a lot of the discussion has been around fees, the programmers have also been concerned about the possibility of hurting their existing — and lucrative — relationships with the cable operators.”
  • Having its own streaming service would allow Verizon to grow its customer base and thereby lower its programming costs.
  • “News of the service will have added controversy in the wake of sister company Verizon Wireless’s plans to resell cable TV service for Comcast Corp, Time Warner Cable Inc and Bright House Networks,” points out Reuters. “Under that deal, announced last week, Verizon Wireless will pay $3.6 billion for valuable spectrum from the cable companies.”

Pay TV Usage Caps: Will Watching Netflix Lead to Higher Cable Bills?

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December 5, 2011
  • Netflix subscriptions could end up costing consumers $28 a month instead of $8 if cable companies decide to add charges for Web streaming.
  • “U.S. providers like Time Warner Cable have weighed usage-based plans for years as a way to squeeze more profit from Web access, and to counter slowing growth and rising program costs in the TV business,” reports Bloomberg. “While customer complaints hampered earlier attempts, pay TV companies are testing usage caps and price structures that point to the advent of permanent fees.”
  • As online video streaming increases in popularity, Web data usage soars. Some companies have penalties in place for customers that exceed their monthly gigabyte allowance, while others do not.
  • Adding charges will not only help cable companies’ Internet revenue, but also possibly boost pay TV service by disincentivizing online services like Netflix and Hulu.
  • A Netflix spokesman told Bloomberg, “[The practice] is not in the consumer’s best interest as consumers deserve unfettered access to a robust Internet at reasonable rates.”

Media Consumption: Redefining Content Ownership in a Digital World

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November 8, 2011
  • An increasing number of consumers are switching to digital content for movies, music and books. The approach has benefits, including convenience and cost, but may also be leading to a loss of rights and abilities we’re accustomed to as consumers.
  • Fortune writer J.P. Mangalindan expressed concerns that systems such as Amazon’s new lending library would change the meaning of ownership since users would be relinquishing actual ownership of content in favor of a rental model.
  • The ability to stream digital content online has led to the same kind of transformation. Services such as Spotify and Netflix have allowed users the freedom of streaming content anywhere, and have made subscribing to such a model affordable and convenient.
  • GigaOM raises an interesting concern: “Apart from our simple human need to own and collect physical objects, however, there’s also the way that renting changes our legal relationship to the content we are consuming. Amazon has shown the downsides of this in the past by actually deleting copies of e-books from people’s Kindles remotely after a complaint by the rightsholder — and those were copies that people had actually bought, not rented.”
  • If we move closer to a streaming, rental-style model for all content then perhaps consumers would eventually prefer a short-term license to use content over actually owning it. But what if Netflix or Amazon decide to change their terms of service? “What if companies decide you no longer have the right to watch certain TV shows or read certain books?”

Mexican Revolution: Cinepolis Luxury Cinemas Coming to California

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November 7, 2011
  • Mexico City-based Cinepolis, the world’s fourth-largest theater chain, has plans to extend luxury cinemas to Southern California.
  • The luxury chain has seen success in Mexico, Brazil, and Colombia, and has already “expanded to about 150 screens across Latin America,” reports the Los Angeles Times.
  • The company has invested $8 million in its Del Mar facility, “where patrons can kick back in a leather recliner and press a button to order teriyaki beef skewers, sushi rolls or a glass of Thomas Hyland Chardonnay.”
  • The all-digital theater features a lounge area with sofas, a full bar serving specialty drinks, and a cafe with coffee and desserts. Touch screen monitors in the lobby show upcoming movie trailers.
  • Tickets cost as much as $19.50, a hefty premium for this economy, but the concept may become an attractive alternative for consumers looking for a new experience.
  • Three theaters are planned for Carlsbad (under construction), Laguna Niguel and Rancho Santa Margarita, while deals are underway for additional locations in Westlake and Westwood.

Viacom Says MovieTracker Quantifies Social Buzz for Hollywood Movies

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November 3, 2011
  • Viacom’s NextMovie.com has attracted more than one million viewers in its first 12 months, according to comScore. This week the site will add MovieTracker, developed with social intelligence platform Trendrr.
  • The new add-on is designed to track and quantify related social activity by ranking “the top 25 films according to social buzz for movies in production, coming soon or in theaters,” indicates The Hollywood Reporter.
  • “There isn’t really another product quite like this for movie fans,” explains VP and general manager of NextMovie Scott Robson. “The MovieTracker isn’t based on box office performance, which is how most movie rankings are compiled. Instead, it’s driven purely by the social conversation around movies. It’s the first time that what movie fans say — on Twitter, on Facebook and in the blogosphere — really matters in a quantified way.”
  • The feature is expected to be available early next year as an app for iOS and Android, allowing mobile access.
  • “The MovieTracker will launch initially on NextMovie.com, but it will appear soon after across multiple Viacom Media Networks properties, including MTV.com, VH1.com and the Logo sites,” says Robson. “It’s also possible that versions of the MovieTracker at some point will appear on air, on the MTV Radio Network and more.”

Social Cinema: Will Film Distribution via Facebook Cut Out the Middleman?

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October 31, 2011
  • Hollywood studios are starting to use Facebook as a direct-to-consumer platform for streaming films, possibly cutting out services such as Hulu, Netflix and Amazon in the process.
  • Universal, Lionsgate and Warner Bros. have distributed some 45 films via the Social Cinema app from Milyoni (pronounced million-eye). “What Zynga is to social gaming, Milyoni is to social entertainment,” reads the company’s website.
  • Miramax and Paramount have used similar apps to offer movies for Facebook credits on fan pages.
  • Rentals based on credits are running the equivalent of $3-$5. Facebook draws a 30 percent cut of transaction revenues.
  • Ad Age Digital suggests the studios’ willingness to offer rentals via social network sites “may reflect their desire to foster competition among online distribution platforms,” adding, “Miramax CEO Mike Lang said that digital monopolies were a greater threat to the film industry than piracy and that his studio had been aware of the importance of a competitive marketplace when doing deals with Netflix and Hulu.”

MoPix Platform Turns Films into Apps for New Distribution Model

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October 18, 2011
  • The MoPix digital platform allows filmmakers and content creators to inexpensively distribute their projects as paid apps.
  • “Filmmakers choose from templates and customizable options to create a DVD-like experience that bridges video content with the interactivity, enhanced features, and extra content of an app,” according to the LAUNCH blog.
  • Filmmakers can target multiple devices including the iPad, iPhone, Kindle Fire and Android devices. The developers charge a one-time fee and a percentage of sales.
  • MoPix will demo the app at the LAUNCH PAD Tablet Conference this Friday in Mountain View, California.

Home Video: Star Wars Collection Drives Major Surge in Blu-ray Sales

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October 17, 2011
  • Last month saw a surprise boom in home entertainment as Blu-ray sales surged 156 percent over the previous year during the week of September 18.
  • Sales were also up 131 percent for the week prior and 60 percent the week before that.
  • The release of high-profile titles including “X-Men: First Class,” “Thor,” and “Star Wars” made significant sales, boosting overall numbers.
  • The $140 six-movie “Star Wars” collection was the biggest seller, possibly due to retailers such as Amazon and Walmart heavily discounting the set to as low as $80.
  • “Studios are starting to bring the crown jewels out of the vault for BD release,” said IHS video analyst Jan Saxton. “That, coupled with the first releases from a very strong summer box office, has the potential to turn the movie disc market around. Weak DVD sales have continually dragged the market down in 2011.”

Company Culture: Former CTO Outlines 5 Secrets to Pixar Success

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October 17, 2011
  • Oren Jacob, Pixar’s former CTO, talks about the company’s keys to their success: Honesty about the quality of their films, a willingness to address problems quickly, looking at the source of problems, storyboarding out the issues, and hiring people that fit the company culture.
  • The story behind the overhaul of “Toy Story 2” was presented regarding the importance to: “Be honest with yourself. When the work isn’t great, say so. Then get to work making something you can believe in.”
  • Fast Company also points out the company’s hiring philosophy: “When Pixar is evaluating potential hires they look for three traits: humor, the ability to tell a story, and an example of excellence.”
  • And one of the more interesting lessons (applicable to a range of businesses): “Sketching storyboards and acting out scripts are the currency of ideas at Pixar. Try a variety of different media to find what works best for you and your organization.”

CinemaNow Introduces Availability of HD Movies from Fox and Warner Bros.

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October 12, 2011
  • CinemaNow — the online video service launched by electronics chain Best Buy in 2010 — has announced it will offer 1080p HD movies from Fox and Warner Bros. on personal computers. “Until now, only standard-definition movies were available from CinemaNow on the PC,” writes Carolyn Giardina in The Hollywood Reporter.
  • Thomas Gewecke, president of Warner Bros. Digital Distribution, indicates that CinemaNow is using Intel technology to make secure HD content available. “Intel Insider is a hardware-based security technology in second-generation Intel Core processors,” reports THR, “which is the fastest-shipping Intel product with more than 75 million units shipped to date.”
  • “The partnership with Intel and Best Buy’s CinemaNow to bring HD digital downloads of our movies to the PC will expand our reach to millions of devices in the U.S. and potentially more around the world,” adds Mike Dunn, worldwide president at 20th Century Fox Home Entertainment.
  • CinemaNow currently offers approximately 15,000 movies and TV shows.

Miramax CEO Believes Hollywood Needs Effective Strategy for UltraViolet

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October 7, 2011
  • According to Miramax CEO Mike Lang, the future of the home entertainment industry and movie production rests in cloud-based digital locker UltraViolet.
  • Warner Home Video and Sony Pictures Home Entertainment are among the studios rolling out sellthrough titles this fall, which are capable of being stored on UltraViolet and then played on various compatible devices.
  • “As an industry, we really have to believe it,” Lang said in a Q&A session at MIPCOM in Cannes. “We really don’t have choice. If the home entertainment business as we know today, in terms of the transaction business, goes away, that’s not good for anyone in this room.”
  • “Lang said failure to reinvigorate the sellthrough model could adversely affect studios’ ability to finance movies going forward,” explains The Hollywood Reporter. “Sales of DVD/Blu-ray Disc/electronic sellthrough movies have historically affected whether a title was profitable or not.”
  • Lang suggests the digital transaction model has not always been clear to consumers, especially in terms of compatibility with all the available devices and different ecosystems. He points out that Netflix has been so successful due to its ease of streaming on multiple devices such as Blu-ray players and game consoles.
  • The Miramax exec believes the studios need to partner with tech companies and retailers moving forward to develop a cohesive strategy. “I don’t know how many people use photo sharing software, but that is 90 percent cloud-based,” he said. “Ninety-five percent of the software industry in the world is now through cloud-based transactions. I’m hopeful that the movie business gets there.”

Microsoft: Xbox Video Service Features Voice and Motion Controls

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October 7, 2011
  • Microsoft is getting a boatload of new content for its Xbox video service intended to help it serve as a digital media hub. The company has struck deals with Comcast, Verizon, HBO and others.
  • Verizon and Comcast will be joining AT&T’s U-Verse to provide content, although while Verizon will include live video TV and video on demand, Comcast is testing the waters with its VOD library only. HBO Go streaming access will provide HBO original programming and movies from Warner Bros., Fox Searchlight and Universal Studios. Bravo, EPIX and Syfy are among the cable networks that will be available. Xbox’s international content will include the BBC, Channel 4, Channel 5 and LOVEFiLM in the UK; Antena 3, RTVE and Telefonica in Spain; and Televisa in Mexico.
  • But how do you get to the movies, TV shows, games and music that you want? Microsoft hopes you will command your Xbox with voice control, motion control and a Windows smartphone.
  • “This is incremental stuff but it’s still interesting. A source who’s played with the new service says it’s genuinely cool. Just as important, given that Microsoft has sold some 50 million compatible machines, it has (potential) leverage to do some really interesting stuff,” reports All Things D. “This is where Google TV would like to be, and it’s why Google is out pitching content guys for a relaunch this fall.”

Evaluation Suggests Netflix is the Best Streaming Option for Now

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October 4, 2011
  • A comprehensive comparison between Netflix and other streaming services shows that, even after the recent criticism regarding the split of its businesses, “Netflix is still the champ, but only if you count both its the streaming and DVD mailing services.”
  • In his evaluation of current offerings, David Strom of ReadWriteWeb examined services such as Amazon Prime, Hulu Plus, Vudu.com and Justin.tv.
  • “Overall, once you leave Netflix you will find fewer choices and searching won’t be as easy to find something to watch,” he writes. “Netflix has a great search engine that won’t just look for movie titles but also check for actors and other principals involved in the movie itself, something the other services don’t do as well at.”
  • Another upside to Netflix is the ability to use devices such as the iPad or TiVo box to stream movies. While of the services enable streaming to your Windows or Mac Web browser, they’re not all compatible with other devices.
  • “So while you might be upset about paying for two bills for your video rentals from Netflix, unless you are willing to spend more time searching for content, you are probably better off sticking with the service for the time being, at least until the others catch up with their content licenses,” Strom concludes. “Or if you already have a cable TV subscription, investigate whether it offers something similar to Comcast’s Xfinity and see what their coverage is there. Ironically, that might be your best alternative to Netflix after all.”

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