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Netflix Tries To Convince Hollywood Broadband Video's A Friend
When executives need to be treated like frightened toddlers...
by Karl Bode Thursday 31-Dec-2009 tags: business · content
Netflix CEO Reed Hastings obviously sees Netflix as broadband's killer app, as the company works to embed cheap Wi-Fi chipsets and Netflix software into every device under the sun. Their problem continues to be Hollywood executives, who have been stingy with streaming licensing rights, out of a misguided fear that offering consumers cheap, easy and high volume film content will cannibalize DVD sales. The Netflix streaming catalog is as a result slim, but Netflix had found a workaround by striking a deal with Starz to simply stream their movies. That loophole is now closed, so Netflix's Hastings has been buy meeting with Hollywood execs trying to convince them there's nothing to be afraid of. While execs are fine with new release DVDs, they're still apparently terrified of new release streaming.

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spewak
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Up next on What's at the Movies!

Hastings pulls his hair out over his failed dream of streaming movies vs. delivering them thru the mail. The Hollywood execs. win again...
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dariena

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Re: Up next on What's at the Movies!

Netflix would truly be a killer app if these retards would allow new release streaming. I can't tell you how many times I've gone through a list looking for a movie only to see its available via DVD only... catch up to the current time ppl!

Transmaster
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1 edit

The World were Digital is a Dirty Word

Negotiating with a Hollywood land executive is like trying to come to an agreement with a wife's divorce lawyer. They have been ripping each other off for over a 100 years now so they go into any negotiation with this mindset. If you don't have anything to blackmail these clowns with you lose.
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Angrychair

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Re: The World were Digital is a Dirty Word

You loose?

meh37II

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Re: The World were Digital is a Dirty Word

said by Angrychair:

You loose?
Leet's noot geet into thaat!

morbo
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said by Angrychair:

You loose?
yes. loosen your bowels.

Transmaster
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4 edits
Loose indeed; Sorry when I was typing this I was listening to a podcast of The SubGenius HOUR OF SLACK which if any of you have listened to know is a sure way of getting weirded out real fast.

Ya know something since J.R. "Bob" Dobbs is the greatest salesman in recorded history maybe Netflix should hire him to negotiate with Hollywood, ya think....
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Rob
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Amazon

What I don't understand is, how is Amazon able to stream newer movies and Netflix isn't? Netflix's instant viewing has a lot of movies, over 10,000 titles, but they are mostly older movies. Amazon, on the other hand, has movies like The Hangover, Star Trek, and Terminator Salvation, on instant viewing.
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jester121
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Re: Amazon

said by Rob:

Amazon, on the other hand, has movies like The Hangover, Star Trek, and Terminator Salvation, on instant viewing.
But they're $14.99 to stream! Amazon doesn't have an all-u-can-eat model like Netflix do they?

EDIT: Just saw they have a $2.99 rental, my bad.

Rob
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Re: Amazon

said by jester121:

said by Rob:

Amazon, on the other hand, has movies like The Hangover, Star Trek, and Terminator Salvation, on instant viewing.
But they're $14.99 to stream! Amazon doesn't have an all-u-can-eat model like Netflix do they?

EDIT: Just saw they have a $2.99 rental, my bad.
Yea, 14.99 to own I think. $2.99 to rent.

Netflix could do something where you don't won't get any DVDs in the mail, but you can get 5 movies per month streamed, latest titles. I know some people would go with that.

I'm actually considering cancelling Netflix. We now have a whole lot of redbox's in my area, plus I have Amazon on my roku, I don't even need Netflix.
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jester121
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Re: Amazon

I wouldn't be opposed to the $14.99 to own some movie, but I need to research the DRM involved. For that price I want to be able to watch it on my PC, streaming to my TV, or take it on a trip with my Ipod or Zune.

And something tells me that isn't something the studios would be supporting in their current mindset.

KrK
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I'd advise you to think twice---- The Netflix catalog is deep, while Redbox, yes, it has new releases, but the catalog is shallow. I consider the two complimentary services, in many ways.
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Rob
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Re: Amazon

said by KrK:

I'd advise you to think twice---- The Netflix catalog is deep, while Redbox, yes, it has new releases, but the catalog is shallow. I consider the two complimentary services, in many ways.
My idea was to use amazon and redbox, as well as the blockbuster kioski (if it doesn't require a membership).
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BF69
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said by jester121:

said by Rob:

Amazon, on the other hand, has movies like The Hangover, Star Trek, and Terminator Salvation, on instant viewing.
But they're $14.99 to stream! Amazon doesn't have an all-u-can-eat model like Netflix do they?

EDIT: Just saw they have a $2.99 rental, my bad.
You still have to wait until 30 days after the DVD comes out which is BS. Listen Hollywood. I'm not going to buy the DVD if I'm interested in renting. I'll wait the 30 days. Or maybe I'll just get tired of waiting and torrent it. Is that better?

Remember guys these are the same idiots that tried to kill the VCR because it was going to kill their business model. Of course as well all know it did just the opposite. Of course if you go way back they thought TV was bad too. Every new medium that they though was hurtful to thier business they fought and every single time that thing they fought actually helps them earn billions more in revenues. Why they can't learn that lesson from history I'm not quite sure?
Core0000
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Re: Amazon

Good Point.
eco
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1 edit
Because Amazon's streaming service is pay per stream meaning you pay individually for each movie you stream, just like VOD from your cable company or rentals on the iTunes store.

Netflix gives you unlimited steaming for a flat fee with all but their most limited monthy price tier. I pay only $8.99 with my Netflix account and get unlimited streaming of movies and TV shows. I've never even once had a DVD or blu-ray mailed to me since I've been a member, all I use is the streaming. In fact, the Tv I just bought I got specifically because it has Netflix streaming built right into it.

jester121
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Re: Amazon

Isn't Netflix streaming only old releases though? Last time I checked them out there were no new releases.

PhoenixDown
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Re: Amazon

Netflix wants to change that stream newer movies too
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eco
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For the most part. I'd gladly pay a bit more for new releases too which is part of the issue being addressed in the tech dirt article: because I don't have legitimate access to those new releases, I get them via other means that deny the studios ANY form of revenue.

They still seem to think that because I can't get access to the content the way I want it I'm just going give in and get it how they want me to get it. Instead, I'm just going to steal it. This is the way a lot of people think and the bone headed studio execs don't seem to understand this fact.

BF69
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Re: Amazon

said by eco:

For the most part. I'd gladly pay a bit more for new releases too which is part of the issue being addressed in the tech dirt article: because I don't have legitimate access to those new releases, I get them via other means that deny the studios ANY form of revenue.

They still seem to think that because I can't get access to the content the way I want it I'm just going give in and get it how they want me to get it. Instead, I'm just going to steal it. This is the way a lot of people think and the bone headed studio execs don't seem to understand this fact.
If a bank doesn't give me a loan, rob it. This will teach banks to give me loans. Sound logical to you?
eco
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Re: Amazon

That's a ludicrous analogy and you know it.
Skippy25

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Re: Amazon

said by eco:

That's a ludicrous analogy and you know it.
No it's not. They have a product you want and you are not willing to meet their terms so you steal it? That my friend is a ludicrous statement.

The system is changing. Eventually, steaming will be more popular than actually playing a physical DVD. The delivery method for all these things will progress.

I personally do not want to ever buy another physical DVD / BluRay again. I want it as a digital file that can be stored on my media server and played on any TV or Device of my choosing. Renting is good for some, but some I want to purchase and I want it at a price that is reasonable and considerably cheaper than a physical Disc and $14.99 is not it.

So it is OK for me to "borrow" a disc and rip it to my server or get a bootlegged copy through download or media because they are not currently meeting my needs? No, its not. I just need to be patient for them to provide me THEIR material in a way I want at a price point I am willing to pay.

I think what will eventually happen to music and movies are those at the core of making it will distribute it themselves. The electronic distribution channel is easy enough and the internet is vast enough that it will allow them to manage their own content and collect their own paychecks for doing such.

cableties
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Re: Amazon

"I personally do not want to ever buy another physical DVD / BluRay again."

Those words have truth to them. How many times can you watch the same movie? And if you do buy it, they release the Uncut version, the Director's Cut, the Extended, Uncut, Director's Cut. The Extended, Director's Cut in BluRay. The Collector's Edition in BluRay....

No. I realized that there is no return value purchasing the movie when you now can turn on a Netflix-enabled device (PS3, Xbox, BluRay, Roku,...) and see that entire library you have, mirrored on Netflix.
Those VHS tapes are where? Those DVDs are soon to be where? And BluRay...

but alot of what we aren't seeing are the studios wanting more money. Take a look at the Sony store of titles that you might not see on the Xbox Live store. Or that I've been waiting (VERY LONG WAIT) for Inglorious Basterds and had it in the queue since October! (yes, Dec release but still I had it there early).

If netflix doens't get some pull in titles (I can live with 14 days after DVD release but more than 30 days and I lose interest or as friends do, watch it elsewhere, likely on someone else's server or burned disc).

I wonder why Hollywood hasn't sucked up places like Netflix, Redbox and Gamefly. Then they would have new distribution model and control.
Oh that's right, they are sleezy, greedy idiots ...
gorehound

join:2009-06-19
Portland, ME

Re: Amazon

I buy physicla things because I want to own them as that.I am not into buying streaming medai files and building a media library.I own a ton of physical things.books,vinyl,cd,dvd
jarthur31

join:2006-04-14
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LOL@ be patient!!!

If the RIAA got its head out of its ass, they would've offered .mp3's for sale back in 2000 and totally destroyed Napster but they CHOSE not to!!!

If these studios won't offer me what I want for a price then yes I will take it.

BF69
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said by eco:

Because Amazon's streaming service is pay per stream meaning you pay individually for each movie you stream, just like VOD from your cable company or rentals on the iTunes store.

Netflix gives you unlimited steaming for a flat fee with all but their most limited monthy price tier. I pay only $8.99 with my Netflix account and get unlimited streaming of movies and TV shows. I've never even once had a DVD or blu-ray mailed to me since I've been a member, all I use is the streaming. In fact, the Tv I just bought I got specifically because it has Netflix streaming built right into it.
Amazon has many more newer movies than Netflix. Anything that has been out on DVD for less than 6 months won't be on Netflix strteaming. Which make Netflix less than useless. Bad enough I have to wait an extra 30 days to watch it through Amazon. I'm not waiting another half a year to watch it on Netflix.
eco
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Re: Amazon

You seem to be missing the point of Netflix streaming vs. Amazon. Netflix is all you can eat so I can watch as many movies as I want for a flat fee whereas Amazon charges per movie just like you'd get your local blockbuster or redbox.

BF69
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1 edit

Re: Amazon

said by eco:

You seem to be missing the point of Netflix streaming vs. Amazon. Netflix is all you can eat so I can watch as many movies as I want for a flat fee whereas Amazon charges per movie just like you'd get your local blockbuster or redbox.
Sure and the all you can eat buffet is a better bargin as long as you like what they are serving.

If gave you a choice of 2 meals A) you're favorite dish( no 2nd's ) $12 B) a buffet for varius kind of animal feces for $1 and it's all yu can eat. Which are you going to take?

Amazon may be the same price as Blockbuster or redbox, but I don't have to get out and I don't have to return the movie. By the way every now and then Amzon has discounted rentals.

here's crapload for $2.99. I'm renting Star Trek TONIGHT. They even have a few for 99 cents.

»www.amazon.com/gp/feature.html//···16261631
Kearnstd
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the entertainment industry likes to try and kill anything new, and a big thing is that as we progress into being greatly connected people want to watch their media on multiple devices when they want and where they want. the MAFIAA doesnt like this because for that sort of accessibility they loose what they crave most, Exclusive control.

to the recording and movie industries loss of exclusive control is more frighting to them then to a banker loosing his bonus and/or golden parachute.
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Sounds like a Hollywood Pig Party!

Sounds like a bunch of pigs at the trough trying to see who can gobble up as much as they can. In this case the trough is the market and the Hollywood Executives are trying to see how much they can suck out of consumers pocket books. Another case of companies trying to charge over and over again for the same thing.

Snakeoil
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Re: Sounds like a Hollywood Pig Party!

So true. I have two favorite porn sites.
One is totally free, the other sells DVDs, pay by the minute, or stream to own.
Their stream to own means I pay a fee, can be as low as 2 bucks to as high as 20 bucks, and I own the movie. as long as this place stays in business, I can stream that movie as many times as I want to.
I really like the stream to own option as I don't have a bunch of DVDs setting around.

Netflix on the other charges a monthly fee, and you can watch as many movies as you want. So I can see where Hollywood would want a tad more return on their buck.
Maybe if netflick charged a little more for the streaming? Or even did a stream to own option?
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See 6 replies to this post

Scatcatpdx
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Monkey Bar Marketing

One does not let go of the last bar until one has a firim grasp of the next bar.

I have to go with Hollywood on this one . They are not going to give up a successful business model just for one company and a single broadband market compared to hundreds of retail markets one can reach via DVD from corner stores to walmart.
eco
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Re: Monkey Bar Marketing

The whole point of the issue here is the studios don't actually have a choice. Adapt or perish. The studios seem to think they can keep dictating the business model to the consumer when in reality it's the other way around. The consumer is going to get the movies and TV shows in the method they want whether it's legal or not. Right or wrong that is how it's going down. Netflix is actually trying to provide these companies with a stream of revenue whereas the other option increasingly being turned to, piracy, will get them nothing at all. It's 50% of something or 100% of nothing.
ISurfTooMuch

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This isn't merely about streaming. The studios are angry at Netflix because Netflix won't play along with their plan to delay rentals for 30 days after a DVD goes on sale. The studios think that this will somehow convince people to buy DVDs instead of renting them. Since Netflix won't go along, the studios are exacting revenge by not allowing more movies to be streamed.

Scatcatpdx
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Re: Monkey Bar Marketing

You hit the nail on the head.
Frankly if I was running a studio I probably would do the same thing. To me Netflix is acting like a sob.

phunkysmell

@comcast.net
This isn't about the 30 day delay at all. This is about Netflix's flat rate model. Similar to songs on iTunes, the studios want a guaranteed revenue per title (say $2.50 with an MSRP of $2.99). This is why pay-per-view streaming/download services like Amazon, Xbox Live, Blockbuster, CinemaNow, iWatchFilm, etc. were easily able to negotiate licenses and have most titles available while Netflix is shut out. The studios have no experience with the flat rate model and they fear it will cut their revenue, regardless of a 30-??? day delay.
Phorkster
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Poor Executives..

What are they afraid of? That people won't watch the crap they put out? Or be shammed into buying some release, only to have an updated Directors Cut released? Followed by the Platinum edition release on a 5 disc set? Ending of course with the Ultimate Collectors edition.

Guess what Hollywood Nerds? Some people just like to watch a movie once. Change your business models, or get the hell out of the way.

djrobx

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Re: Poor Executives..

Poor executives? More like stupid executives.

If you don't allow Netflix or other providers to allow LEGAL streaming movies on the day of DVD release, people are more likely to go to an ILLEGAL source. So instead of making some money, they'll make none at all.

Took the record industry a while to figure this out, you'd think they'd learn from their mistakes!
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kjohndoe

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said by Phorkster:

What are they afraid of? That people won't watch the crap they put out? Or be shammed into buying some release, only to have an updated Directors Cut released? Followed by the Platinum edition release on a 5 disc set? Ending of course with the Ultimate Collectors edition.

Guess what Hollywood Nerds? Some people just like to watch a movie once. Change your business models, or get the hell out of the way.
They are afraid of change and the unexpected results of jumping into a new way of media distribution without a full understanding of the impact. This is just smart, eyes-open, business.

Anyone that has a internet based settop (i.e. blue-ray w/ netflix, roku, PS3, XBOX360), knows full well the power these new boxes bring. Today they are in the hands of the "nerds" moving quickly to the main stream. They will move even quicker with more and more content...

What does that mean?

Is it a disrupting technology (hell yes). Is that good for the consumer (so far - yes), is it bad for some business (yes). Does it have the potential to disrupt classic linear video delivery (yes). Does Hollywood count on these businesses (yes). Will those triple play companies need to make up the income loss elsewhere (yep).

Is this disrupting technology good in the long run for Hollywood? Maybe, but they are not going to jump into the abyss without looking... They may not be fast enough for consumers like us, but big companies usually are able to grow because they look before they leap.

morbo
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1 edit

Re: Poor Executives..

said by kjohndoe See ProfileThis is just smart, eyes-open, business.
:

I disagree with this. Every day they delay is a day new people are turned onto illegal distribution channels. Make it easy and convenient for people to access the content or else consumers will find another much less expensive way to do it.
kjohndoe

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Re: Poor Executives..

said by morbo:

I disagree with this. Every day they delay is a day new people are turned onto illegal distribution channels. Make it easy and convenient for people to access the content or else consumers will find another much less expensive way to do it.
While I agree there will always be illegal ways to get content (aka stealing), most realize this is morally wrong. For the sake of those who believe people are generally good, I hope you are wrong.

For the sake of the ones on the fence, I hope content does become easy to obtain at a price which is fair.

morbo
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Re: Poor Executives..

Hollywood can change this if they only embrace change and stop fighting it.

meh37II

@verizon.net

Yeah, well...

if "Hollywood" had their way, then everyone would pay to watch a movie every time they watched a movie.

pog
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Re: Yeah, well...

said by meh37II :

if "Hollywood" had their way, then everyone would pay to watch a movie every time they watched a movie.
Well, a streaming model offers the only way they could get paid every time.

The real problem is cost per view. There's no way that Netflix will be able to stream unlimited new releases at what they charge now. Physical media involves a built in throttle... the rental cycle is measured in days. With streaming, you just click the next title. Much more content can be consumed via streaming... and new releases ought to cost more.

Perhaps that's the key... offer a 2nd tier called "premium streaming". Existing accounts could come with very low limit on premium and just have more expensive or different packages available... or simply offer pay-per-view, too.

That would at least get Netflix's foot in the door... which they desperately need to do if they want to remain viable.
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huckster

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Re: Yeah, well...

This is the same thing i was thinking.

Instead of 8.99/month I would pay maybe 14.99/month and have access to stream a certain amount of premium content. It would be cool if they had a rollover concept b/c I tend to fluctuate my viewing depending on the time of the year.

Doctor Four
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said by meh37II :

if "Hollywood" had their way, then everyone would pay to watch a movie every time they watched a movie.
The entire entertainment industry (Big 4 Music, the Big 6 Movie studios, and the TV producers) are all like that. In an ideal world in their view, there would be no such thing as fair use, and every time you wanted to listen to watch something in a different place or format, you would pay.
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Kearnstd
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the movie industry is such that on one of my DVDs they had an unskippable section of copyright warnings stating where you cant show it. stupid things like at the office or on oil rigs lol.
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longgone

join:2000-12-30
Culloden, WV

Same As Always

Hollywood's finest(?) came out in droves against tape recording devices back in the day, as an evil that would destroy the entire movie industry. Many of the industries most popular and award winners came on TV Shows and pleaded their cases against Beta and VHS recording, as if they were involved in a 1st degree murder trial, and all just to protect their precious films from going to Home consumers. Same as always....well almost, as 90% of movies are now pure crapola.

optemino

join:2009-10-13
Patterson, CA

really?!

stupid hollywood execs. I haven't bought a DVD in like 4 years!!! ... and i don't think i ever will again. It's all digital.... who needs an extra 7 bucks for a disk that scratches when you have a full HD of iTunes Movies

Also

@verizon.net

It would also cannibalize ISPs video on demand...

...which I think is a bigger issue than DVD releases. Not mention VOD service for a new movie running $4.95 each. I guess they learned nothing from Blockbuster?

Anonymous_
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1 edit

stupidwood

they all ready do with with NEW movies same day release as DVD

TWC On Demand

i do not use such, as rapidshare and hotfile megaupload give them to me for free!

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