Posts Tagged ‘netflix’
Thanks to a slew of new streaming deals with several independent film distributors, Netflix is adding about 300 indie titles to their Watch Instantly library. According to their press release, distributors include “The Criterion Collection, Gravitas Ventures, Kino Lorber, Music Box Films, Oscilloscope Laboratories and Regent Releasing.” For Criterion, the new films will be in addition to the 35 they brought to Watch Instantly in December. Many of the films are already available to stream, and the rest will soon appear on the site.
The news comes weeks after Netflix announced that they are voluntarily delaying new Warner Brothers releases for thirty days in exchange for better prices when buying the films in bulk. Netflix mentioned that the money they save from the WB deal could allow them to purchase even more content (particularly of the streaming variety) down the line. This indie deal could be the first result of that situation.
Some notable additions to Watch Instantly include:
“Departures” (Regent Releasing/Here Films), Yojiro Takita’s 2009 Academy Award winner for best foreign language film; “Wendy and Lucy” (Oscilloscope), the poignant 2008 tale of a woman and her dog on the edge starring Academy Award nominee Michelle Williams; “A Nos Amours” and “Au Revoir Les Enfants” (Criterion), two classics of French independent cinema; “Good Dick” (Gravitas), a modern fairy tale from 2008 written by, directed and starring Scottish-born Marianna Palka; “As It Is in Heaven” (Kino Lorber), the 2004 Swedish hit and foreign language Oscar nominee about a famous conductor and the church choir he inspires; and “Seraphine” (Music Box), the 2009 biopic about the brilliant, self-taught French painter Seraphine Louis.
I’m a bit of a Netflix Watch Instantly addict, and I’ve definitely seen Wendy and Lucy and Good Dick available to watch for a few weeks already. I would wager that many of the high profile indie titles that have been added over the past few weeks were likely made possible by this deal.
2010 is going to be a big year for many emerging technologies, and chief among them is streaming video in the living room. We have the Boxee Box coming out sometime soon (and surely some competitors will follow), Netflix appearing on the Wii, and I wouldn’t be surprised if Hulu inks some deals to start appearing on game consoles (perhaps with a subscription-based model).
We’ll likely see many more distribution deals like this from Netflix throughout the year. Come the end of the year, I’d be very interested to see how much their Watch Instantly usage numbers change compared to the end of 2009.
I’ve become fascinated by the war going on between movie studios like Universal and Fox, Redbox and Netflix. The DVD is such an important part of the studio finance equation that these companies are jumping through all sorts of hoops to control how discs are disseminated to the public. Fortunately for us, those hoops are on fire, and the result is a little digital media circus played out before our very eyes.
One of the most entertaining stories of late is that Redbox has circumvented studio litigation by sending employees out to buy large quantities of DVD at retail. Fox and Universal won’t currently sell discs to the company, but Wal Mart will sell DVDs to anyone, including Redbox employees. But now Wal Mart and Target will only sell five discs to any one person during a specified window. And they’re going to enforce this…how?
So, the recap: Warner Bros. got Netflix to agree to a 28-day window of retail exclusivity for new DVD releases, during which Netflix won’t be able to rent discs to customers. If you want a new WB movie when it is first available, you’ve got to buy it. Other studios are expected to follow suit.
Variety reports that Wal Mart and Target have now set purchasing limits for new DVDs. Both retailers will limit purchases to five copies of any given movie within different time frames. Wal Mart is setting the limit for 28 days after release; Target for one week. Wal Mart has thrown out some boilerplate PR-speak (”From time to time, we have placed purchase limits on products at stores so that they can be accessible and available to as many customers as possible”) but does anyone buy it? Seems like an obvious roadblock for Redbox, which has been amusingly able to think out of bounds to keep kiosks stocked with DVDs.
So, uh…maybe a stupid question, but how exactly will this be enforced? Obviously the idea is to stop one Redbox employee going into a store and buying twenty copies of a new film, but what if one person went to several stores multiple days in a row? Are Wal Mart and Target going to set up a national DVD ownership database? Will there be black market sales for cases of DVDs behind big-box stores? I really hope so.
A few weeks ago, we reported on Netflix’s plan to delay Warner Brothers new releases for twenty-eight days. While not exactly convenient for Netflix subscribers, the move was thought to put Netflix in a better position with the studio to receive more physical copies of films, and potentially get more streaming rights as well. Hacking Netflix recently spoke with Netflix Chief Content Officer Ted Sarandos about the deal, who offers some insight into the company’s thought process. He talks about how this move could ultimately help Netflix, and why they offered to implement a delay window before the studios began demanding it.
When asked why they went for a DVD rental window in the first place, Sarandos responds:
The most practical reason is that the savings derived from this deal enable us to be in stock completely on day 29. Remember that we’re a subscription service and the way that you manage the economics of a subscription service is to manage the demand of any disc, depending on the economics of the disc. In the case of the most expensive disc, which in this case is a Warner Bros. disc, purchased through a 3rd party, those discs were out of stock for far longer than 29 days for most Netflix subscribers.
He has a point. I personally never even try to get a Netflix new release until it’s been out for several weeks. Such delays have gotten even worse when it comes to Blu-ray releases. Since Netflix isn’t even really publicizing their artificial delay window to their subscribers, many probably won’t even notice it when compared to the standard wait time for new releases.
Hacking Netflix also reports that the first films to be delayed from this whole deal are The Invention of Lying and Whiteout. Neither film was likely to inspire much demand as new releases, so it remains to be seen how Netflix customers will react to delays with more popular films.
Perhaps the most interesting bit from the interview is why Netflix decided to implement this delay window on their own terms, instead of waiting for the studios bring it up. Says Sarandos:
We brought this to Warner Bros. over a year ago. The ability to rent a DVD on DVD street date is something that the studios tolerate because it’s a business practice protected by law in the first sale doctrine. Anyone can go to Wal-Mart, buy a DVD, open a video store, and rent it. No studio can stop you from getting content if they don’t like your business model. There’s not much hope that they’re going to reverse that legislation, they’ve have tried to many times over the past 30 years. I went to the studios and said that we know you hate the first sale doctrine, and you’re probably not going to legislate your way out of it, and you can’t impose retailers out of it, so why don’t you incent me to create the window?
While the delay window doesn’t seem like the most consumer-friendly move Netflix could have made, it could also end up being a savvy business decision that ultimately gives Netflix access to more content than before. Much like how their early focus on streaming content has put them in a privileged spot today — now that streaming options are getting cheaper and ever-ubiquitous in the living room — the new release delay could pay off for Netflix in ways we can’t foresee.
Read the rest of the interview over at Hacking Netflix.
When Netflix partnered with the Starz network in October 2008 the deal was a serious coup. Through the deal with Starz, Netflix got access to a large library of streaming movies, and did so without having to negotiate digital rights with individual studios. Some of the Starz content is represented by old, low-quality pan and scan transfers (just try to stream The Terminator) but much of the content is quite good. If you’ve watched Wall-E streaming on Netflix it is thanks to the Starz deal.
Now Bloomberg is reporting on a possible change to the deal. We knew this would happen sooner or later: Disney is seeking to change the terms of the business it does with Starz.
According to the report, Starz wants licenses with Disney to allow five years of access, including cable and digital venues. Disney, meanwhile, wants those streaming the studio’s films to pay a premium for the privilege. The current Starz / Disney deal expires in 2012, but as Netflix is currently making an aggressive push for streaming films, any far-reaching change in terms will have a real effect on the company’s outlook.
Part of Disney’s attitude may be motivated by a studio plan to build a new online subscription service. Whether this would incorporate the company’s ‘Keychest’ technology isn’t specified at this point, but that seems likely.
Starz, meanwhile, was determined to hang onto digital rights, at least as of last year. Speaking in November 2009, Starz CEO Robert Clasen stated, “Given the nature of the way the business is moving, we would be foolish to enter into an agreement that pushed back rights to the studio.” Former HBO chief Chris Albrecht is now the CEO at Starz. One of his focal points is expected to be developing original content, and I haven’t encountered his stance on the company’s digital catalog. From a consumer standpoint, I’m rooting for Starz. If Disney is given the terms the studio wants, we’ll have to jump through more hoops to stream films.
Netflix recently released data to the New York Times showing the top rentals of 2009 by various zip codes. The paper plotted a set of the rentals on maps showing twelve American metro areas. Maps of each area are shaded to represent how frequently a film was rented in that area, and the results often seem, sadly, to be as predictable as you’d expect.
Looking at Atlanta, for instance, few outside of the north half of the metro area inside the I-285 perimeter (a primary demarcation between urban and suburban Atlanta) touched Vicky Cristina Barcelona, while Paul Blart: Mall Cop is barely touched inside that perimeter and is rented more and more as you move away from the city.
I would like this feature to be more transparent. Seeing an example of the raw data would help in accepting how different films break down across zip codes. Furthermore, what’s interesting isn’t the divisive films like Paul Blart, but a movie like State of Play, which doesn’t have a great presence anywhere, but does have similar general numbers across many different neighborhoods. Is that the Russell Crowe factor? And does the Brad Pitt factor account for the fact that The Curious Case of Benjamin Button has better numbers everywhere than you’d expect?
If you need any further proof that Netflix is just going to keep pushing the streaming ‘Watch Instantly’ service as a primary offering, look no further than the fact that all three major video game consoles will soon be able to deliver movies to Netflix subscribers. Within months, Nintendo Wii owners will be able to stream movies via the console.
Netflix claims that up to fifty percent of subscribers are now watching streaming films, and by adding the Wii to the list of compatible devices, they may push that percentage higher.
The deal with Nintendo was announced today, as reported by the New York Times, and will launch this spring. As with the availability of the service on other platforms, subscribers will have to have at least the $9/month DVD by mail subscription tier to utilize the streaming service.
The service was added to Microsoft’s Xbox 360 in November 2008, and to Sony’s PlayStation 3 in November 2009. Like the initial Ps3 offering, Nintendo Wii users will have to insert a disc containing Netflix software each time they want to stream a film. Netflix supplied the PS3 disc for free, and will do the same for Nintendo Wii owners. Unlike the PS3, however, a system update that renders the disc unnecessary may not be released.
The NYT reports speculation that a new Wii HD will be announced this year. The console’s video capability has never been touted as a selling point; rather, Nintendo went with low graphics and video specs to keep the cost of the console low, and has seen it established as a strong seller as a result. A Wii HD upgrade seems unlikely, but if it were to be in the offing, details might emerge in June at the Electronic Entertainment Expo (E3).
The slumping DVD business has caused a lot of consternation at film studios, which rely on DVD revenue to buoy profit margins. Now Warner Bros. has restructured the deal under which Netflix offers the studio’s discs to subscribers. Starting this month, Netflix will wait 28 days after the release of new Warner Bros. DVD titles before offering them to subscribers.(This probably isn’t the sequel to 28 Days Later you were hoping for.)
This is the same deal that Warner Bros. has with Redbox, and while the Redbox terms led to a lawsuit, Netflix has accepted the new structure in exchange for other terms favorable to the rental company.
An inkling of this deal was first heard in August, and the LA Times reports that Netflix has agreed to the 28-day “sell-through” window in exchange for “improved financial terms, higher inventory levels and increased access to content for its online streaming service.” In other words, the studio is betting that taking less money from Netflix for DVDs after a 28 day delay will be more than offset by retail performance of each DVD.
The latter point is also interesting. Netflix has really been pushing the streaming service by highlighting it on the website and offering access via set-top boxes, connected Blu-Ray players and video game consoles. Given that streaming content eliminates many of the issues inherent to distributing rental DVDs by mail, the new priority given to the service isn’t a surprise. WB has a massive film catalog, and if more of that is made available to stream, it will help the service quite a bit.
The question now is how long other studios will wait to follow WB’s lead, and what terms Netflix will accept in exchange for delayed rental windows. Universal and Fox have already waged campaigns against Redbox, so expect to hear soon that they’re following in WB’s footsteps.
Things are looking tough for Netflix. The online rental service is trying to convince Hollywood studios to sell them the rights to more video content for their “Watch Instantly” streaming offering, but many studios still seem to be mad about Netflix’s deal with Starz last year. The Starz deal, which in one fell swoop added around 2,500 titles for streaming, allowed Netflix to gain access to newer Disney and Sony movies without asking for permission from the studios.
While great for consumers, the move didn’t win Netflix any friends in Hollywood. Now, according to Bloomberg, Netflix has an uphill battle ahead when it comes to acquiring more streaming content.
Netflix is now relying on their Chief Content Officer, Ted Sarandos, to convince studios to play ball. Sarandos is well aware of the ire caused by the Starz deal, and says that he’s willing to write “big checks” to win over the studios. He goes on:
We have to fight against their fear that we’ll destroy the ecosystem. We’re not destroying anything. We’re creating a new opportunity.
This argument is key to Netflix’s future streaming success, and ultimately their future as a company. As bandwidth becomes cheaper, and more methods for delivering Netflix streaming content to televisions find their way into homes, the company will surely begin to prioritize streaming over snail-mail discs.
We’re already beginning to see that change take place; Netflix recently shifted the Watch Instantly tab on their website’s menu to the first spot, making “Browse DVDs” the second. Who knows how many additional streaming users that change alone could make (currently, 42 percent of subscribers have used streaming in some fashion).
The studios are also worried about abandoning the incredibly popular DVD format. From the article:
DVDs rank as the most profitable part of Hollywood’s film business, with studios keeping about 80 percent of each purchase, according to Tom Adams, president of Monterey, California-based Adams Media Research. Sales will fall about 10 percent to $13 billion this year, according to Adams, who tracks the market. Rentals will total $8 billion, unchanged from 2008. Studios also will get about $2 billion from premium cable in the U.S. and $1 billion from basic cable and broadcast TV.
Streaming is uncharted territory for the industry, which has grown comfortable with the traditional movie life cycle: Release in theaters, sell on home video formats, offer on premium cable channels, and ultimately, collect on broadcast and affiliate licensing. To help ease the transition, Netflix may agree to a purchase exclusivity window which will entail delaying rentals for new releases. It’s bad news for consumers, but Netflix may ultimately have no choice in the matter if they want to remain in business.
Sarandos reiterated that they’re willing to pay big money for licensing deals with studios, which is a wise move in my opinion. At this point, Netflix can really only throw money at the issue to alleviate the fears of studios. There’s no doubt that Hollywood will embrace digital offerings eventually as more than a novelty (consider the industry-ending cries we heard when VHS came about), and it’s becoming all the more clear that Netflix will be a pioneer in the next era of media distribution.
[Source: Bloomberg]
For years, the Criterion Collection has been around to provide one of the best film educations a casual viewer can receive. Just by checking out any chunk of the now-massive collection, you’ll be exposed to an incredible array of films that cover every spectrum of entertaining and artistic filmmaking. And now it just got a whole lot more accessible, as Criterion has added thirty-five more films to stream via the Netflix ‘Watch Instantly’ service. Now you have no excuse to miss some of the best films ever made.
Quite a few films from the Criterion Collection had hit the Netflix streaming service already, and in the last month the offerings have come fast and furious. With the 35 titles added today, you can multiply your cinematic knowledge a hundredfold, just by queuing up all these titles over the holiday break.
There’s a great deal of classic, unmissable work by Akira Kurosawa: Yojimbo, Sanjuro, Rashomon, Seven Samurai, Ikiru, High and Low and The Hidden Fortress. There’s For All Mankind, the documentary about the Apollo space program built from footage shot during some of the first American flights into space. With a score by Brian Eno, it has long been one of my favorite marriages of sound and image. There’s Europa, the early Lars von Trier experiment that subverts the thriller form and uses a multitude of filmmaking tricks to create a queasy view of post-war Germany. And there are The Vanishing and General Idi Amin Dada, each of which in its own way (thriller and documentary) explores the sociopathic tendencies of human beings like few other films manage.
Incidentally, this is a nice complement to a subtle change Netflix made to the company’s primary webpage last week. The ‘Watch Instantly’ tab is now the first one on the page (as shown on the company’s official blog) which would seem to suggest an even greater future emphasis on streaming movies. I’m all for it.
(I also have to mention that Netflix has also added Slavoj Zizek’s The Pervert’s Guide to Cinema to the streaming catalog, which complements the Criterion ‘film school in a box’ ethos by having Zizek insert himself into recreations of classic movie scenes, the better to discuss their underlying meaning and intent. It’s a great project.)
Here are the new Criterion titles added today:
High and Low
Jules and Jim
Sanjuro
Seven Samurai
Summertime
The Vanishing
Walkabout
Yojimbo
My Life as a Dog
For All Mankind
Cleo from 5 to 7
Sisters
Closely Watched Trains
M. Hulot’s Holiday
Rashomon
I Vitelloni
Wild Strawberries
L’Avventura
Hidden Fortress
General Idi Amin Dada
Man Bites Dog
The Lower Depths
Ikiru
Onibaba
Le Corbeau
Overlord
La Bete Humaine
Pickpocket
Elevator to the Gallows
Cria Cuervos
Mala Noche
Europa
Wings of Desire
Z
The Seventh Seal
[via CHUD]
Filed under: Tech Stuff, Distribution, Home Entertainment
I'm not sure who originally said it (although I like to think it was Ms. Debbie Hunt), but desperation is truly the world's worst cologne, and right now Blockbuster Video is starting to stink. The retailer has been struggling to stay competitive in the face of on-demand video and downloadable films from services like Netflix and Redbox, and all of it has certainly added up to a rough year for them. After a disastrous third quarter, stores are closing and they're losing money hand over fist, so what is the chain to do? Well, I will say this for them, they aren't going down without a fight. The Wall Street Journal recently reported on some of the new services and products the mega-chain is launching as their latest attempt to stay in the entertainment game ... but is it enough?According to WSJ, Blockbuster is looking to expand beyond the DVD rental market, and is making inroads to the digital world by developing an iPhone application that would let customers check to see if a rental is in-stock, as well as expanding their offerings in-store like selling video games, concert tickets, and even branding entertainment hardware like DVD players that would have a direct connection to their online store where you could download Blockbuster titles onto your player. Unfortunately, these newfangled strategies are still a long way off, but until then Blockbuster is hoping to fill the gap by offering a new service that would mail a DVD at the in-store price to your home if your local store doesn't have it in stock.
Blockbuster's Chief Executive, Jim Keyes, remains optimistic that the retailer will come out on top (comparing it to the switch from VHS to DVD), but I'm still not convinced that a couple of snazzy new services is enough to save Blockbuster, are you?
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