Netflix Adds Content, Discontinues Plans for Qwikster

Beginning in the Fall of 2012, Netflix will provide on-demand access to current and future programming from the CW. Warner Brothers Television and CBS announced on October 13 that they had reached agreement with Netflix on a four year on-demand deal.

“Netflix is a model that opens a new door for The CW programming to expand its audience reach through the terrific Netflix service and creates a brand-new window for CBS and Warner Bros,” said Les Moonves, CEO of CBS Inc.

Like Hulu, Netflix will be providing programming from networks after it has aired once on its originating network. It remains to be seen whether this availability begins to act as an alternative for viewers who may want to “time shift”  network programs by accessing them from a source other than the network and its local affiliate.

In related news, Netflix announced on October 10 that it has discontinued plans for a separate DVD by mail service called Qwikster. Instead, U.S. subscribers will continue to use one website, one account and one password for their movie and TV watching enjoyment under the Netflix brand. In addition, Netflix announced that is “done with the price changes.” Read more

Netflix Splits into Two Companies

Via a blog post issued Sunday evening, Netflix CEO Reed Hastings announced that the company has decided to split into two separate entities: Netflix for its subscription-based online streaming service and Qwikster for DVD rentals by mail.

This decision comes on the heels of a recent price hike that had Netflix subscribers taking to industry blogs to voice their frustrations with the changes. Some subscribers also canceled their subscriptions, which led to a decline in stock price.

In the same blog post, Hastings issued an apology for the company’s strategic communications errors. “I messed up. I owe everyone an explanation,” he wrote. “In hindsight, I slid into arrogance based upon past success. We have done very well for a long time by steadily improving our service, without doing much CEO communication….But now I see that given the huge changes we have been recently making, I should have personally given a full justification to our members of why we are separating DVD and streaming, and charging for both. It wouldn’t have changed the price increase, but it would have been the right thing to do.” Read more

It’s Looking Up at Redbox

This week Coinstar, the parent company of Redbox and the operator of the Redbox DVD kiosks, announced that second quarter revenue was up by 33.8%. According to Coinstar, this is nearly double the profit the company made in 2010.

In making the announcement, Coinstar also indicated that Redbox has passed the 1.5 billion milestone for DVD and Blu-ray rentals. In addition, customers have rented approximately 4 million video games.  Redbox noted that it would begin offering game rentals at an additional 5,000 kiosks beginning August 1.

Coinstar CEO Paul Davis said that Redbox still intends to roll-out a digital service this year, but noted that negotiations with potential partners were “taking longer than expected.”

UltraViolet Licensing

Digital media asset collecting can now take a giant step forward. The Digital Entertainment Content Ecosystem (DECE) launched  UltaViolet licensing on Wednesday. The licensing of content, technology and service providers was seen as the final step in getting the digital entertainment asset platform moving. Read more

Blockbuster’s Plan to Attract Netflix Customers

Dish Network’s Blockbuster video unit has initiated a limited-time offer targeted at Netflix customers unhappy with the recent price changes unveiled earlier this week by Netflix.

Netflix customers that sign up will get a free 30-day trial after choosing one of the two most popular Total Access plans from Blockbuster. Once the trial is over, the monthly price will be $9.99 or $14.99–depending on which package is selected from the deal that launched on Thursday. Both packages use the traditional disc-by-mail plan with the caveat that you can go to the store to exchange titles. Blockbuster also provides films via streaming through its “Blockbuster On-Demand” to Internet-enabled devices or Blu-Ray and television sets.

Blockbuster isn’t competing with the new Netflix prices but does promote several differences in the services they provide.  Read more

Can Existing DVD Libraries Escape Obsolescence?

A new technology standard for home video collectors is due to debut later this year. Developed by a consortium that includes Comcast, Microsoft, Netflix, Nokia, Sony and all of the major motion picture studios except Disney, UltraViolet will allow DVD film collectors to access new and updated versions of their films via the “cloud.”

In a system that is somewhat similar to VoD distribution, users will have access to the titles that they have paid for via a digital “locker” operated by a service provider. The digital locker will hold copies of their movies.

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Linking Kiosk and Online Delivery

In a joint press release Sonic Solutions and MOD Systems announced a strategic partnership that will provide retailers with a complete multi-platform system to digitally deliver premium entertainment. The partnership will integrate RoxioNow, the Sonic platform supporting over-the-top Internet entertainment delivery to connected devices, with the MOD System solution supporting “self-service” downloads at digital kiosks.

Anthony Bay, Chairman and CEO of MOD Systems is quoted as saying, “Together with Sonic, we’re taking a major step toward meeting the long-standing vision of the entertainment industry by giving consumers easy access to digital entertainment, whether in-store, on-line, at home, or on-the go, all sold and supported by the retail brands consumers trust.”

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