Netflix drives customers to piracy by delaying new releases
Greetings Readers!
With the exception of when they raise prices, everybody seems to have a major love of Netflix, myself included. Unfortunately, I think that love affair is about to come to an end. It was announced today that Netflix has decided to let the greedy people over at Warner Bros. keep Netflix from renting new DVD or Blu-ray releases until 28 days after their release. So much for Netflix's willingness to stand up to the buffoons at the movie studios.
In exchange for this stupidity, Warner Bros. will open up more of its catalog of movies to Netflix for streaming. I don't suppose that is the worst trade-off in the world but it certainly hurts many Netflix customers who use the service to check out new movies as they come out. For the customers that don't do any streaming from Netflix, there is no upside to this deal. If these deals catch on, not only will it hurt Netflix subscribers, but Netflix itself. Currently, 30% of Netflix's rental business is new releases, something that this will really cut into. Hopefully they won't bend over to any other studios if they want to keep that number from going down. While this appears to be a big win for Warner Bros, I believe it will come back to bite them.
Warner Bros. stands to make a lot of money off of this deal. A large chunk of the money made from a movie's DVD/Blu-ray sales are made in the first month of release and by taking out a large chunk of the rental competition in the first month, Warner Bros. expects sales to increase considerably. I, on the other hand, am not so sure of this. As a usually happy Netflix customer (except when they increase Blu-ray rental fees), I almost never buy DVD or Blu-ray movies anymore. If there is a great sale on Amazon, then I will buy something but otherwise, if I can't find it on Netflix, I can find it on <insert bittorrent site here>.
This is exactly what many other people are going to be doing as well. If they can't get a movie from Netflix, they won't want to waste their gas going to their local big box store in hopes that they will have the new movie that they want to watch in stock. Owning the movie is nice, but unless you know you want to watch it all the time, it makes no sense to buy it when you are already paying for a Netflix subscription. Paying $20 for a movie when you should be able to rent or stream it is insane. This is the point where most people will have the thought that going to a bittorrent site and getting the movie the night you want to watch it for free is a lot easier, cheaper and more hassle free than going to buy the movie at the store. The fact that Warner Bros. doesn't understand this just shows what kind of idiots they have running the company.
In this decade, content producers need to focus on putting their content everywhere and make the money they can instead of putting it only in a few places because all that is going to do is drive more people to piracy.
Netflix, stand up for your customers, not the fools at the movie studios!
Amazon’s VOD success depends on distribution deals
Greetings Readers!
The streaming video market has become rather crowded in the last couple of years with services like Hulu and YouTube, but the video service with the most potential is Amazon's VOD service.
Amazon's VOD (Video On Demand) service has been around for a while and has a huge library of tv shows and movies including some of the newest releases yet it has never gained much traction in a world dominated by Netflix. If Amazon hopes to really compete in this market, it needs to do more than advertise its service (which it doesn't do a very good job at anyway). Amazon needs to through its weight behind the service and make sure that everybody is aware of it and it is accessible as possible. How can they make it accessible? Amazon needs more distribution deals with hardware manufactures.
Amazon currently has deals which allow its service to be accessed on Roku boxes, Panasonic Blu-ray players, TiVo DVRs and Sony Bravia TVs, but they have to do much better than that. Amazon needs to push for a deal with every TV manufacture instead of just Sony and their Bravia line. With many people upgrading to new and better TVs after the DTV transition to take advantage of the new HD content, there is a huge opportunity for Amazon if they work to put themselves on all internet connected TVs. Same thing with Blu-ray players, Blu-ray is starting to gain traction and Amazon needs to do its best to get on more than just Panasonic players if it wants to get in on the ground floor before the mass exodus from DVD to Blu-ray begins. As far as TiVo goes, that is a great move for them but they should also work towards being on the DVRs offered by cable and satellite providers.
Amazon has the huge opportunity to grab a huge chunk of the streaming video market if they are willing to do what is necessary to put their service in front of as many people as possible. They have started moving in this direction, but so as Netflix and others, so if they want to put themselves in a dominant position, they must act now!
Finally, I think they need to go mobile with their video on demand service. Apps for the iPhone, Android, Windows Mobile and such should be coming too. Many people like to watch videos on their phones, so if you have a way to stream videos to a phone, even if it is over wifi, you are ahead of the competition.
The competition in this space is in its very early stages and Amazon is on the position of either being left behind or taking the lead. The potential for profit is there, will they strike before its too late?
E3, Another Year of Disappointment
Greetings readers!
In case you have been on vacation or just hiding under a rock, this week was the Electronic Entertainment Expo, or E3 convention in LA. The convention is where a majority of the major gaming announcements for the year are unveiled. While there were some interesting announcements this year, the event ended up being another big disappointment.
For those that missed the press conferences, here is a quick rundown. Microsoft showed off Fallout 2, Gears of War 2, a new Xbox Dashboard, and had two major announcements. Microsoft has partnered with Netflix to bring streaming movies to the 360 by way of your Netflix subscription, and they announced that Final Fantasy XIII will be coming to the 360. Next, Nintendo did their announcements which included a Shawn White snowboarding game using the Wii balance board, the Wii Motion Plus attachment, Wii Sports Resort and Wii Music. Last was Sony. Sony didnt have much in the way of interesting game announcements other than one of my personal favorites, a new God of War game. They showed off two new Resistance games but nothing that spectacular that hasnt been shown before. They also showed off Little Big Planet and Playstation Home. Sony's bombshell announcements (outside of God of War 3) were the unveiling of a new video store on the Playstation 3 and a new PS3 with a $100 price cut.
Lets start with Microsoft. I will admit that Fallout 3 looks awesome, especially with the Fat Man gun and the ability to target individual body parts and shoot people with teddy bears. Gears of War 2 and Final Fantasy 13 looked impressive but not in an 'I need to change my pants' kind of way. The real announcement here was the changes to the Xbox and Xbox Live itself. The new Dashboard interface looks very simple and clean compared to the current version. This is nice but im not sure its something that really matters. With this, they also introduced Avatars. Avatars are the Mii's better looking cousin. I can't give Microsoft credit for originallity here, but at least they are better looking and more human like than Nintendo's Mii characters. I will admit the whole Party concept is great, especially with the ability to watch your friends Netflix movies. Speaking of Netflix, that announcement didn't suprise me in the least. Such a deal has been known to be in the works for many months and while I am glad there is finally an announcement, it didn't have any unknown suprises with it.
Nintendo on the other hand, was a complete snooze. Much like Microsoft, there was a bunch of boring sales data that, while interesting interesting in the past, has lost much of its meaning with monthly NPD data being released to the public. Being a Shawn White fan, I will admit it was cool to see him. Being a fan of snowboarding games since 1080 for the N64, I think this looks interesting although I'm not sure it will make me want to buy the Wii Balance Board. Wii Sports Resort looked interesting when coupled with the Wii Motion Plus, but seemed to lack the really fun games that were apart of the original Wii Sports. Wii Music on the other hand just looked terrible. Not only is it ugly and look strange, there seems to be no skill involved in the game and seems to be about as involved as playing the air guitar. I dont see this game selling very well at all. The most disappointing part of the whole Nintendo event was that they said that the Mario and Zelda teams were working on something, but said nothing more.
Finally, we come to Sony. This was probably the best event out of all of them. While they didnt have any shocker announcements like Microsoft announing Final Fantasy XIII, it was a solid confernece. Unlike the boring data that Nintendo and Microsoft had, Sony talked about their stats and Greatest Hits games using Little Big Planet, an idea that was absolutely brilliant! The movie store was a great announcement as they went directly to the movie studios rather than through Netflix in a move that I see as a huge Screw You! to Microsoft and Netflix. The pricing feels about right for the movies and even feels like a bargain when you find out you are now able to put a copy of the movie on your PSP to take with you anywhere while still having a copy on your PS3. A God of War 3 Trailer was shown off, which made me scream with joy. No ship date though. Finally, their major hardware announcement was a new, 80GB PS3 with the same features as the 40GB PS3 for the same price as the 40GB PS3. Essentailly the 80GB PS3 will now be available again outside of the Metal Gear Solid 4 bundle and for $100 less. What is still unclear to me is that if it has the same features as the 40GB, I assume that means that there is no PS2 backward compatibility that has previously existed in the 80GB PS3 units. While I would like some clarification on this, this is still a big announcement and the only major hardware announcement of the event (Microsoft made their announcemnt a day early, so im not counting that).
While there were some decent announcements and solid game demos, compared to years past, there seemed to be a major lack of excitement with the conference. There were very few major game announcements, and the major Halo announcement that everybody was expecting was pulled at the last minute. Hopefully there will be some better game announcements at other shows or this could turn out to be a very disappointing holiday season for gamers.
-Jeremy "pcnerd37" Bray