site Search:


 
   
story category
Netflix Spends Another Billion On Broadband Video
New 5 Year Licensing Pact With Epix Looms
by Karl Bode Tuesday 10-Aug-2010 tags: Video · business · alternatives · content
While Netflix earlier this year agreed to a bigger new release delay window for physical DVDs, their primary reason was that they could expand their broadband video library. The company continues to work aggressively to expand their licenses for new broadband streaming content, spending $66 million in the second quarter of 2010 on licenses for streaming titles, compared with just $9 million one year earlier. The company this week is nearing yet another new deal, this time with start-up pay-TV channel Epix to gain access to yet more content from the major studios, including Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer. According to sources, the five-year-deal would cost Netflix about a billion dollars,

view: topics flat text 
Post a:

OldschoolDSL
Premium
join:2006-02-23
Indian Orchard, MA
Reviews:
·Comcast
·voip.ms
·America Online
·Dish Network

Yay

I feel good right now knowing I own stock in that company.

I love Netflix and think joining was a very good value for me and my family. I've just about removed Cable TV because of them.

(Do not confuse the above statement as an endorsement or a recommendation. You spend and/or invest your own money at your own risk)
--
HP Pavilion a6750f (tweaked)
Windows 7 Ultimate 64 * Ubuntu 10.04 64 * SuSe 11.2 64 * Mac OS Snow Leopard

"I could always tell you the truth, but would you believe?"

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

2 edits

An awful lot of money depending on entitlement generation

Netflix is laying out an awful lot of money expecting the "entitlement generation" to actually pay for their entertainment. I think they will be disappointed in the results. The people they are marketing to don't like to pay ANYTHING for their online entertainment. $9 million or $66 million is a small buy-in by Netflix. But $1 billion is real money and the ROI is likely to be poor IMO.
--
Are you happy with your rep in Washington, DC?

Ytsejamer1

join:2008-01-18
Somersworth, NH

Re: An awful lot of money depending on entitlement generation

Yes, they are laying out some serious cash...but I don't think it's a bad investment. They aren't staying stagnant and are trying to grow their business according to their proposed model. If you have a good, well run company like Netflix, offering a service for a fair price, that customers obviously like, use, and pay for...then they will be successful. Plus every electronics device now is coming Netflix-ready. My family members have new TVs and are going to subscribe to Netflix just to take advantage of the feature.

I wish I got in on Netflix stock, but their stock price tells me that they're doing good business and they are executing their plan successfully.

As for the service, I love it. I stream it to my tvs from my media center PC. There's always something to catch up on and I've suspended my DirecTV service. Between Netflix and streaming channels online, I may just jettison TV service permanently because honestly, i haven't missed it at all.

Jeffrey
Wilpon please sell the Mets
Premium
join:2002-12-24
Long Island
kudos:3
Reviews:
·Vonage
·Optimum Online

1 edit
said by Romney2012:

Netflix is laying out an awful lot of money expecting the "entitlement generation" to actually pay for their entertainment.
What do you mean here, exactly? I'm sure there is some truth to it, but I think it's a rather broad generalization.

When I was young, we didn't have cable (or thus, a cable bill), cell phones, or anything really that was a monthly automatic recurring charge. There was no "online entertainment" - if you had cable, you had MTV and that was about it. If you wanted entertainment, you headed down to the local Arcade, or you went to your buddy's place who was the one kid you know that had Colecovision.

These days, I have plenty of recurring monthly charges directly related to our entertainment. Cell phones, Netflix, Xbox Live, just to name a few. I'm sure there is something else that I'm forgetting.

When I joined Netflix years ago, I thought the idea of receiving DVDs by mail was awesome. No need to go out to Blockbuster, which was good, since the liklihood of Blockbuster having my movie in stock was low. Now, a few years later, getting DVDs by mail almost seems a bit archaic, with everything being streamed these days.

Now, $1 Billion. That is a large some of money, and I do wonder about that ROI, but I assume someone at Netflix knows what they're doing - or not. To me, it seems like a good investment because I'm one of those people that loves my Netflix subscription for the streaming capabilities. My wife and I fire up my Xbox 360 and the Netflix component each week to watch Prison Break from S1E1 on, as we missed the show when it aired. The fact that every episode from each season is available to us in great quality is something we really enjoy. It works, it works well, and we use it. Happy to pay for something like that. (Now, if my 5th Xbox 360 can steay healthy, this would be fantastic. )
--
He used to say that soul shine, is better than sunshine, better than moonshine, damn sure better than rain.

Debunking the 2012 hysteria. | Let's Go Mets!! | Will work for coffee or beer.
chimera

join:2009-06-09
Washington, DC
Reviews:
·Comcast
As a member of "the entitlement generation" I can say that I am a happy netflix subscriber, because they offer a quality service that does want I want for a price that I am willing to pay for it. I even tried to sign up for Hulu premium, but I didn't get into that beta since that's another service that offers me something I would be willing to pay for.

Give me on demand high quality content with a large backlog so I can watch what I want when I want, and I will pay for it. You can call that entitlement if you want, but I don't like being forced to pay a cable bill the subsidizes sporting events instead of letting me pay for what I want to watch, and right now that seems to be the option that cable and satellite providers like trying to push.
saiga6360

join:2010-08-09
Jersey City, NJ
Yes, I rather feel "entitled" to getting more out of the money I spend on Netflix. I like this move.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: An awful lot of money depending on entitlement generation

said by saiga6360:

Yes, I rather feel "entitled" to getting more out of the money I spend on Netflix. I like this move.
Will you like it as much when Netflix raises prices to cover their increased expenses.
--
Are you happy with your rep in Washington, DC?
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ
Holy hell do the movie companies like to bend Netflix over a barrel for licensing costs and stipulations. can tell they still want to shield their older business models from the future.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service
I disagree. I think Netflix is being very smart and they are running with the ball that so many other big players have fumbled on the field. They are setting themselves up to be the de-facto market leader with a massive library of content that you can't get anywhere else. Right now Netflix dances to the Studio's tune--- but it could be one day, maybe not so far off, the Studio's are being played like a piano by Netflix.

I see good things ahead for them. The most serious threat of course is the ISP's trying to come with their low caps/high overages to protect their own video markets.

The only thing I see that could kill Netflix is if they are legislated out of business by bad law and poor policy to do with Broadband and high speed internet. Very possible with Lobbyist controlled Washington.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

neowulf

join:2000-10-20
Port Orange, FL
Netflix is exactly what the "entitlement" generation has been looking for in a company. It is one of the few big companies online who get it. They are at the perfect price point, no commercials, with not too shabby amount of content. Of course as a netflix subscriber, would always love to see more content. I really do not mind the delay on some of the content, I will just wait if I know it is coming, no big deal to me.

I just hate when people think any thing online that cost money will fail because they feel everyone online is a bunch of no good pirates. Most pirates are out there because the content is not available to them in their region. Or the price point for the content is ridicules. Or the content that you pay for contains commercials or some DRM that hurts the consumer more than protects the content.

I will not pay for a hulu sub because of that, if I am paying for content, I will not watch commercials. I already do not sub any cable service for the same reason. Why would I do that online? I have no problem paying for content that is commercial, and DRM free.

King P
Don't blame me. I voted for Ron Paul
Premium
join:2004-11-17
Franklin, TN
Reviews:
·Comcast
·Vonage

Good!

I love Netflix, and I would love to see a wider selection of on-demand titles.

I think this is a great move by Netflix and will further distinguish them in the broadband video space.

They have a really good selection of kids videos and their movie/tv selections seem to get better each month.

Because of Netflix, I FINALLY got to watch Caddyshack for the first time in my life...no lie. Of course the only thing keeping me from watching it before was because I was too lazy to go to my car and drive to Blockbuster...lolz
--
My Music blog:
»www.zunetracks.net
Goldman

join:2002-06-21
Maumelle, AR

Great

The more content Netflix gets makes it a good alternative to cable/satellite. If I weren't married I wold definitely do the Netflix/Hulu combo and dump pay TV.
Madtown
Premium
join:2008-04-26
Madera, CA

Re: Great

said by Goldman:

The more content Netflix gets makes it a good alternative to cable/satellite. If I weren't married I wold definitely do the Netflix/Hulu combo and dump pay TV.
Why would being married prevent you from dumping your cable/sat provider?

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Great

Wife would get cranky I think is his point.
Madtown
Premium
join:2008-04-26
Madera, CA

Re: Great

said by KrK:

Wife would get cranky I think is his point.
As long as she can enjoy TV shows or Movies, what the difference? weather it through DVD's, Cable/Sat, Instant Streaming, Blu Ray, VHS (yes it's outdated but still a form of watching film) no matter the technology she can still watch movies or tv shows.
rick0204

join:2009-05-20
North Bergen, NJ
Reviews:
·Optimum Online

Very Good News

I started Netflix streaming to 2 TV's in my house with a bluray player and the Roku player and canceled my subscriptions to the premium movie channels. I now have over 12,000 titles to pick from plus one new release bluray at a time and I am saving over $15.00 per month. The Roku has even more then just Netflix - Youtube, Amazon VOD, etc. I also love horror movies and most of them are Lionsgate. I am unable to subscribe to Epix because my cable company does not offer it. This will be a real treat to horror/scifi lovers.
xenophon

join:2007-09-17

Cautious spending

I hope NF is careful with their expenditures as it's a great model that may go in the toilet if they don't manage it properly. If they fail, the $10 unlimited model may never return. They may be creating long term expenses that is too dependent on growth forecasts. The could be living above their means.

In the meantime, looking forward to more content.
xenophon

join:2007-09-17

Re: Cautious spending

Hmm, after looking at epix list of movies, this doesn't look like a good deal at all...

»www.epixhd.com/all-movies/
jesseb_66

join:2002-12-06
Tucson, AZ

Canceld my Dish sub last night

We just canceled our Dish sub last night. Streaming content to my Blu-Ray player and Wii has been great.

With Netflix, my OTA antenna, and if Samsung ever releases the Hulu Plus app to their other Blu-Ray players we'll have more than enough content.

Bill will go from $48 to $20...

swintec
Premium,VIP
join:2003-12-19
Alfred, ME
kudos:3
Reviews:
·RapidVPS
·Sprint Mobile Br..
·VoicePulse
·RoadRunner Cable

Not clear...

It still is not clear to me if we (netflix subscribers) would have to pay extra for this Epix catalog of movies. It keeps being compared to HBO in the article and how Netflix would become a rival to premium movie channels. Anyone else know differently? I would hate to see it become a paid add-on.
--
Usenet Block Accounts | Unlimited Accounts
Madtown
Premium
join:2008-04-26
Madera, CA

Re: Not clear...

said by swintec:

It still is not clear to me if we (netflix subscribers) would have to pay extra for this Epix catalog of movies. It keeps being compared to HBO in the article and how Netflix would become a rival to premium movie channels. Anyone else know differently? I would hate to see it become a paid add-on.
I would like to know too.

XcceLL

join:2004-03-16
Bethlehem, GA

Yes! Go Netflix!

I am very excited to see this news. Finally a company move that actually benefits the costumers! Time to upgrade my internet speed and old D-Link router!
--
Just killen time.

Van
Premium
join:2009-07-08
New Orleans, LA

Love everything about Netflix

They have given me numerous credits whenever I have slight issues with video (which rarely happen)

No Ads
Great and expanding selections
HD access or at least great non-HD access to other
$10 is a solid price for all of that

Flippant
So Much For Subtlety
Premium,Mod
join:2000-06-04
Katy, TX
Host:
Filesharing Software
Earthlink Cable
Texas Gulf Coast
AT&T U-verse
AT&T Southwest

So will the price for content increase as well?

How long can the streaming portion of the service remain "all you can eat". I suspect they will start limiting the amount of streamed hours per month at some point, and introduce tiers for streaming. I have Netflix and love the streaming, easy to say we watch more streamed content than physical DVDs. Of course I would love to see a broader selection but I like the current price structure better atm.
Madtown
Premium
join:2008-04-26
Madera, CA

Re: So will the price for content increase as well?

said by Flippant:

How long can the streaming portion of the service remain "all you can eat". I suspect they will start limiting the amount of streamed hours per month at some point, and introduce tiers for streaming. I have Netflix and love the streaming, easy to say we watch more streamed content than physical DVDs. Of course I would love to see a broader selection but I like the current price structure better atm.
I think it will stay the same.
chuckie1

join:2006-06-05
Gulfport, MS

this bad news imo

it's bad enough that netflix delays shipping some movies by 28 days, now they're going to have another segment of movies that will be delayed by 90 days. i think i'm going back to blockbuster, so i can watch new releases within a reasonable amount of time.

BF69
Premium
join:2004-07-28
Camden, TN

Re: this bad news imo

said by chuckie1:

it's bad enough that netflix delays shipping some movies by 28 days, now they're going to have another segment of movies that will be delayed by 90 days. i think i'm going back to blockbuster, so i can watch new releases within a reasonable amount of time.
Not sure where you ge tthe whole 90 days thing?
c4junk
Premium
join:2004-05-08
Orlando, FL

Watch Netflix most every night-- Farscape forever!

I love Netflix also - this seems a good idea to me, I use a Roku box now but don't forget all the new blu-ray players and hdtv are coming out with wireless built in. If they have a pay-4-vu from Epix and keep the price low like Red Box I'll play.
I figure that close to Xmas there will be some good deals on the new built in wifi blu-ray players (not many built in now) and then I'll jump.

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
kudos:2

On Demand Payments

Netflix needs a on demand payment. I don't watch many movies and TV shows. I don't like subscription either.

antwanp
Beyond FM, Beyond AM, XM Satellite Radio
Premium
join:2002-05-14
Cedar Hill, TX

Re: On Demand Payments

said by antdude:

Netflix needs a on demand payment. I don't watch many movies and TV shows. I don't like subscription either.
You can get everything that Netflix has on iTunes Rental or Amazon On Demand, since you clearly hate the subscription model that everyone else seems to love...

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
kudos:2
Reviews:
·RoadRunner Cable

2 edits

Re: On Demand Payments

said by antwanp:

said by antdude:

Netflix needs a on demand payment. I don't watch many movies and TV shows. I don't like subscription either.
You can get everything that Netflix has on iTunes Rental or Amazon On Demand, since you clearly hate the subscription model that everyone else seems to love...
Well, I only watch one movie per month or even more. That should give you an idea. It is not worth paying monhtly subscription. I don't even have cable and satellite TV services. I do use over the air (OTA).

AoD is OK. I just don't like I have a time limit and don't like streaming. I could BUY the movie, but that's pointless. I like going to RedBox to borrow a DVD for 99 cents, but it is limited. If I don't have time to finish within a day before returning, I just rip it to my HDD to watch later.
chimera

join:2009-06-09
Washington, DC

Re: On Demand Payments

Not every payment model works for everyone. Amazon's on Demand selection isn't bad from what I remember if that does what you want.

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
kudos:2
Reviews:
·RoadRunner Cable

Re: On Demand Payments

said by chimera:

Not every payment model works for everyone. Amazon's on Demand selection isn't bad from what I remember if that does what you want.
But the time limit and DRM suck.
--
Ant @ »antfarm.ma.cx and »aqfl.net. Please do not IM/e-mail me for technical support. Use the forum! Disclaimer: The views expressed in this posting are mine, and do not necessarily reflect the views of my employer

antwanp
Beyond FM, Beyond AM, XM Satellite Radio
Premium
join:2002-05-14
Cedar Hill, TX

Re: On Demand Payments

well, since you wanna do things the on-demand way, you're gonna deal with the time-limits...
--
Follow me on Twitter: »www.twitter.com/antwanp

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
kudos:2
Reviews:
·RoadRunner Cable

Re: On Demand Payments

said by antwanp:

well, since you wanna do things the on-demand way, you're gonna deal with the time-limits...
Yeah. I wouldn't mind having late fees as long as prices are reasonable. Redbox charges another buck for each day.
--
Ant @ »antfarm.ma.cx and »aqfl.net. Please do not IM/e-mail me for technical support. Use the forum! Disclaimer: The views expressed in this posting are mine, and do not necessarily reflect the views of my employer

Sunday, 03-Jun 12:15:02 Terms of Use & Privacy | feedback | contact | Hosting by nac.net - DSL,Hosting & Co-lo
over 12.5 years online © 1999-2012 dslreports.com.