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Video Interview with Netflix Content Chief Ted Sarandos
Today I'm pleased to share a video interview I did with Netflix's Chief Content Officer Ted Sarandos at the recent NATPE Market conference in Miami, FL. Among the topics Ted addresses are:
- How the business is doing since the Qwikster reversal, and what lessons were learned?
- Is there a chance the Starz deal could be renewed at some point?
- What is the role of TV series vs. movies on Netflix (and is the "flix" coming out of Netflix since Ted told me separately that 60% of the 2 billion hours watched in Q4 '11 was TV, and that the percentage is rising)?
- Why are the after-market economics for serialized dramas so challenging, in turn making Netflix a valued partner?
- Which competitors make him most nervous?
- How are international rollouts going?
- Which connected device is most critical to Netflix long-term?
- Is Netflix having any impact on cord-cutting and cord-shaving?
The interview runs 18 1/2 minutes. (Note, I'm off camera and my audio isn't great, so the questions are overlaid in text.)
Categories: Aggregators
Topics: Netflix
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Comcast Launches Xfinity Streampix, Seeking Increased Packaging and Pricing Flexibility
Comcast is launching a new subscription video-on-demand service called Xfinity Streampix that will be freely available to most of its higher-paying subscribers, while carrying a $4.99/mo charge for its lower-paying video
subscribers. At launch the service will include past season episodes such as "30 Rock," "Grey's Anatomy," and "Married With Children" from NBC, ABC and Sony respectively, as well as movies from Warner Bros. and Universal, plus kids programming from Cookie Jar and Disney Channel. Streampix will be accessible both in and out-of-home and on multiple devices like the Xbox 360 and Android as the year progresses.Categories: Aggregators, Cable TV Operators
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Online-Only Originals Are Entering a Virtuous Cycle
Just last week, in "Hollywood's A-Listers Embrace Online Video, Upending the Status Quo," I noted all the various factors that are contributing to top industry talent now pursuing online-only projects. But as I've had a chance to digest last week's CES announcements, plus Hulu's news yesterday that it too is planning an aggressive originals strategy in 2012, I think it's quite likely that online-only originals are entering a "virtuous cycle." Key elements for online-only originals' success are falling into place and are poised to build on each other, combining to dramatically accelerate the growth and acceptance of this emerging class of programming.
Categories: Aggregators, Cable Networks, Indie Video
Topics: AOL, Hulu, Netflix, Yahoo, YouTube
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Even Microsoft Can't Afford to Break Into the Pay-TV Business
Here's just how expensive it has become to break into the pay-TV business: even mighty Microsoft can't afford it. Reuters reported late yesterday that Microsoft has put on hold its plan to create a pay-TV meets Netflix type
subscription service, after getting sticker shock over the cost of content distribution deals. When you have $52 billion of cash and equivalents on your balance sheet and still can't figure out how to make the numbers work, that's a pretty significant statement about how expensive licensing linear content has become.Categories: Cable Networks, Cable TV Operators, Satellite, Telcos
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Hollywood's A-Listers Embrace Online Video, Upending the Status Quo
Tom Hanks. Louis C.K. Lisa Kudrow. Kevin Spacey. David Fincher. Bill Maher. Jennifer Lopez. Judy Greer. Steven Van Zandt. Anthony Zuiker. Morgan Spurlock. Ed Begley, Jr. Heidi Klum. What do these Hollywood A-Listers (or near A-Listers) and other stars all have in common? They're all involved in original online video projects which are helping upend the Hollywood ecosystem, legitimize the online medium and further fragment audiences. Each no doubt has his/her own reasons for getting involved, and taken together they're creating momentum that is going to draw in even more talent.
Of course, the big news this week was Tom Hanks partnering with Yahoo for the animated series "Electric City." Hanks, one of Hollywood's most bankable stars, said he was drawn by the opportunity to make "ambiguous attractive" which feels like another way of saying he's searching for greater creative freedom. While creativity may be motivating Hanks, in Louis C.K.'s case, it seems more about tweaking the System and proving that when presented with a compelling offer (in this case a $5 DRM-free download of his "Live at the Beacon Theater" special), people will behave properly (i.e. pay rather than steal).
Categories: Aggregators, Devices, Indie Video
Topics: AOL, Netflix, Tom Hanks, Yahoo, YouTube
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VideoNuze Report Podcast #115 - Video Viewing Goes Multiplatform
I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 115th edition of the VideoNuze Report podcast, for Jan. 6, 2012. In today's podcast Colin and I discuss several new data points around multi-platform video adoption. Colin cites a U.K. report that says 36% of people are watching TV via a PC, laptop or tablet device and discusses the impactions of changing viewer behaviors, just latest in a string of research showing changing viewing patterns.
Categories: Aggregators, Podcasts
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Netflix's 2 Billion Streaming Hours in Q4 Blows Away Competitors
Netflix subscribers appear to be spending far more time viewing the service's streaming content than do users of any other online video destination.
According to new data Netflix released today, its 20 million subscribers consumed 2 billion hours of streaming TV shows and movies in Q4 '11. Using simple averages, that would mean each subscriber streamed 100 hours during the quarter, or approximately 2,000 minutes per month (about 33 hours). That's roughly 4 1/2 times the level of YouTube's time spent/viewer. According to comScore, YouTube, which dominates total monthly volume of online video, had approximately 151 million U.S. users in November, 2011, who viewed 444.5 minutes each, on average.
Categories: Aggregators
Topics: comScore, Hulu, Netflix, YouTube
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Verizon Won't Easily Snag Netflix
Verizon is getting its full turn in the rumor mill. Last week, word had it that Verizon is looking to launch an OTT subscription service. Next, Verizon was teaming up with Redbox. And the latest rumor yesterday is that Verizon isplanning a bid to acquire Netflix, which sent Netflix's beleaguered stock up by 6%, and more today. As always, you can never be sure what to believe. But let's assume for a moment that Verizon is sniffing around Netflix. While the combination makes a certain amount of sense, Verizon's big challenge will be that if Netflix is truly in play, unlike others, I would expect pretty healthy bidding competition.
Categories: Aggregators, Deals & Financings
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Netflix's Xbox Upgrade Brings a Chorus of Boos
Netflix announced its new Xbox experience this morning, but if the company was hoping for an enthusiastic reaction, it's instead getting a rousing chorusof boos from dozens of Xbox users. Nearly all of the comments on Netflix's blog post on the upgrade are negative, with some characterizing it as more of a downgrade and asking if or how they can restore the old Netflix experience.
Categories: Aggregators, Devices, Games
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Verizon Needs to Bring More than a Knife to the OTT Gunfight
Late yesterday Reuters reported that Verizon is looking at launching an online-only subscription service for streaming movies and TV shows outside its geographical footprint. While
such a move initially seems disruptive to incumbents like Netflix and others, the folks at Verizon better remember the old adage about not bringing a knife to a gunfight; if they really want to compete, significant investments in content and promotions are going to be required. Even then, it's not yet clear to me how Verizon succeeds in this highly competitive space.
Categories: Aggregators, Telcos
Topics: Amazon, CBS, EPIX, HBO, Netflix, Starz, Time Warner, UltraViolet, Verizon, VUDU, YouTube
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With New Disney Deal, Is YouTube Poised to Disrupt Online Movie Rentals?
Last Wednesday, just before the Thanksgiving break, YouTube announced a deal with Walt Disney Studios which will make hundreds of new and classic
movies from Disney, Pixar and DreamWorks available for rental. The Disney deal adds to the online movie rentals (or "iVOD" as this category is also known) initiative YouTube announced last May. Between the breadth of movies soon to be available, its aggressive pricing - including $.99 rentals on recently-released blockbusters, its integration in numerous connected devices and of course, its status as the online video market's 800-pound gorilla, YouTube may just have what it takes to disrupt the iVOD market, impacting the broader Hollywood and movie distribution industries.
Categories: Aggregators, FIlms, Studios, Video On Demand
Topics: Amazon, Apple, Disney, iTunes, Netflix, YouTube
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Netflix Raises $200 Million From TCV, Board Member's Investment Firm
Talk about keeping it all in the family: Netflix's newly issued $200 million convertible debt (part of a $400 million financing announced yesterday) was bought by Technology Crossover Ventures, an investment firm that wasco-founded by Netflix board of directors member Jay Hoag, and where Netflix's former CFO Barry McCarthy is now a venture partner. There's nothing untoward about the move and TCV is a long-time Netflix investor. In fact, given the pair's intimate understanding of Netflix's operations, the move could actually be interpreted as a real vote of confidence in the company's future. Or, on the other hand, it could be seen as a sort of hard-luck loan as the company struggles to regain its footing in the wake of massive recent missteps and aggressive expansion plans.
Categories: Aggregators, Deals & Financings
Topics: Netflix, Technology Crossover Ventures
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This Holiday Season, Video Apps' Purpose is to Sell Devices
It's no secret that consumer electronics makers have long relied on content to help sell their devices. After all, people buy devices because of what they can do, or consume, on them, just ask Apple, whose iTunes store is the linchpin to its iOS devices' success. However, as the all-important holiday season approaches, there's new evidence that video apps specifically are being embraced by CE providers (loosely defined) to drive their devices' value propositions.
Categories: Devices
Topics: Amazon, Barnes & Noble, HBO GO, Hulu Plus, Netflix, Roku, Xbox 360
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With Recent Deals, OTT Distributors' Content Strategies Are Crystallizing
Amid the drama and headlines surrounding OTT distributors (e.g. Netflix price increases and Qwikster decision, on-again/off-again Hulu sale, etc.), these companies' content strategies actually seem to be crystallizing, with each trying to stake out a somewhat distinct value proposition for their users. True, there is still plenty of blurriness between them, and each appears reluctant to be pigeon-holed, but recent deals suggest how each OTT distributor is positioning itself.
Below is a summary of the content strategies of most of the major OTT distributors (Netflix, Hulu, Amazon, YouTube, Walmart/VUDU, iTunes and Blockbuster) with a catchphrase that best describes their approach:
Categories: Aggregators
Topics: Amazon, Blockbuster, Hulu, iTunes, Netflix, VUDU, YouTube
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VideoNuze Report Podcast #109 - Netflix Q3 Results - Oct. 28, 2011
Daisy Whitney and I are pleased to present the 109th edition of the VideoNuze Report podcast, for Oct. 28, 2011.
In this week's podcast, Daisy and I discuss Netflix's Q3 '11 results which it reported earlier this week. There's been a lot of coverage of Netflix's 800K subscriber loss in the U.S. in Q3, plus its dismal Q4 forecast, and we try to get behind the numbers to assess what they mean and where Netflix goes from here. Listen in to learn more!
Click here to listen to the podcast (16 minutes, 33 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!Categories: Aggregators, Podcasts
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Netflix Dodges Qwikster's Bullet in Q3, But Pricing Changes to Kill Q4 Results
Netflix's Q3 earnings are in, with the company reporting it lost just over 800K U.S. subscribers to end the quarter at approximately 23.8 million subscribers. Although it's a dreadful performance compared with Q3 '10 when it gained 1.8 million subscribers, the reality is it could have been much, much worse. As I wrote earlier today, Netflix had lowered its Q3 U.S. target by 1 million to 24 million, on September 15th. But the Qwikster split-off was only announced 3 days later, unleashing a fury of negative sentiment. The big question was just how that sentiment would translate into subscriber losses. The answer turns out to be "just" another 200K vs. the reforecast.
Categories: Aggregators
Topics: Netflix
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What To Look For In Netflix's Q3 Results Later Today
After the market closes today Netflix will release its highly anticipated Q3 results, which will lay bare the full consequences of the company's decision to raise its rates, spin off the DVD operation as Qwikster, and then reverse itself, all of which happened during the chaotic quarter. The key thing to look at is how all of this affected U.S. subscribers - how many new ones were acquired during the quarter, how many churned out and of course what the ending total is. After all the ink that's been spilled speculating on management's decision-making, these metrics - plus its Q4 guidance - will reveal just how severe the impact of all these decisions really was.
Categories: Aggregators
Topics: Netflix
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Netflix Stock Hits 52-Week Low Amid Fear of a Potential Q3 Subscriber Debacle
If Netflix investors were hoping that the company's decision to scrap its Qwikster spin-off might re-energize its beaten-down stock, then they'resorely disappointed as it instead hit a new 52-week low today of $111.62, down nearly 5%, even as the Dow Jones rallied by 330 points. On the positive side, the DVD reversal shows Netflix management was willing to be flexible, but on the other hand, the quick change unnerves investors looking for a steady hand on the tiller.
Mostly though, the number 1 question now is why did management abruptly change course and dump Qwikster overboard?
Categories: Aggregators
Topics: Netflix
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Netflix (Partially) Comes to Its Senses, Drops Qwikster DVD Plan
Whew. Sanity has (partially) returned to Netflix as the company has announced that it won't pursue a colossally misguided plan to split off its DVDoperations as "Qwikster" after all. A blog post from CEO Reed Hastings begins "It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs."
While this is certainly true, what the post leaves unsaid - but which is even more fundamental to Netflix - is that DVDs remain absolutely essential to the company's success and will for some time to come. By not fully embracing this, the company seems to be ignoring reality. No doubt this led to the Qwikster move in the first place, and now also raises the risk of additional missteps down the road.
Categories: Aggregators
Topics: Netflix
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Exclusive: More Netflix Subscribers Still Use DVDs Than Streaming for TV Viewing
Streaming may be the future, but for the present, more Netflix subscribers age 13-54 still use DVDs and Blu-ray discs to watch TV shows and movies on their televisions, according to a new research report that Knowledge Networks will release later this morning. As the chart below shows, among those surveyed, 29% said they use DVDs and Blu-ray to watch Netflix content at least once per month on their TVs, while 20% said they use streaming to watch on their TVs.
For Netflix users the TV is still the primary viewing screen; 44% of those saying they use Netflix at least once a month use their TVs to watch, with 30% using a computer and 11% using a mobile device. Even among those using a computer, DVD usage is holding up pretty well, with 9% of respondents who watch Netflix at least once per month saying they use DVD, and 15% using streaming. This data, along with other results in the research, raises further questions about whether Netflix acted prematurely in deciding to split off its DVD operations to focus on streaming, a point I have made previously.
Categories: Aggregators
Topics: Knowledge Networks, Netflix
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