Blockbuster to Shutter U.S. Stores and DVD by Mail Services

DISH Network announced that its Blockbuster subsidiary will close approximately 300 remaining U.S.-based retail stores and its DVD by mail distribution operations by January 2014. The Blockbuster By Mail service will end mid-December. Blockbuster has recently divested itself of U.S. and international assets, including operations in the UK and Scandinavia. However, DISH plans to continue its support of Blockbuster’s domestic and international franchise operations. Continue reading Blockbuster to Shutter U.S. Stores and DVD by Mail Services

Netflix Loses Almost 1,800 Movies from Streaming Catalog

Netflix is clearing nearly 1,800 movies from its library this week. The service is dropping certain titles due to expiring licensing deals with studios MGM, Universal and Warner Bros. The list is largely comprised of lesser known, older titles and is not being viewed as significant as when Netflix lost many newer films after it failed to renew its streaming agreement with Starz. However, the move may still be seen by some as a sign of future change. Continue reading Netflix Loses Almost 1,800 Movies from Streaming Catalog

Will Dissolution of the Netflix-Starz Relationship Impact Video Biz?

  • Netflix walked away from another deal with Starz after that company insisted on a tiered-pricing model similar to what they would get with a cable channel. Netflix did not want to tamper with the simplicity of its monthly fee model.
  • Netflix had reportedly offered Starz more than $300 million per year to renew their agreement.
  • With the demise of the Starz deal, Netflix customers may feel that they are paying more and getting less. Still, Netflix counters that their Starz content accounts for only 5-6 percent of domestic viewing.
  • Netflix will be challenged by competitors like Hulu, Amazon, Apple and Microsoft XBox Live. Moreover, cable companies are increasingly offering similar access to video through TV Anywhere services.
  • Starz may either sell its content to a Netflix competitor or try and create its own streaming brand like HBO.