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Netflix celebrates Q4 success of 1 million new subscribers and eyes bigger growth ahead; Roku too
At our last update after Q1 '09, Netflix had just triumphantly smashed through the 10 million customer barrier, although that's well in the rear view mirror now that the company is celebrating the addition of 1 million customers in the last quarter alone. With a subscriber base of 12.3 million (48% of whom have checked out a movie on Watch Instantly last year) its next step is to expand beyond U.S. borders, with plans to offer a streaming-only package to an unnamed new country in the latter half of this year; Hacking Netflix guesses Canada or even the UK could be potential expansion targets. Even the possibility of a Disney/Starz fallout affecting streaming didn't dampen the mood, during the earnings call CEO Reed Hastings seemed confident it could keep doing deals for compelling movies going forward, with WB, Sony, MGM, Paramount and others either signed up or renewed during Q4 alone. Still, don't expect those dealings to extend to new releases -- Hastings is comfortable sticking with a cable-like viewing window for internet delivered movies in combination with the existing disc rentals, for now. Even Roku, closely tied to Netflix's internet-to-TV efforts since they began, is thinking big. As CEO Anthony Wood tells Bloomberg, we can expect the box itself to reach the low, low price of free sooner rather than later as the company works out revenue sharing deals with various subscription and video on-demand services, bringing it up to "the same kinds of channels that any cable operator can offer." It's set goals of 1 million set-top boxes sold by the end of the year (already over 500,000) and 100 channels, we figure another half-off sale or two should get things done in no time.
Reggie Fils-Aime: Wii users don't care for Netflix HD
We seriously have to question the sanity of some of these high-ranking corporate types. Reggie Fils-Aime, Nintendo of America boss and fearless orator, has joined Andy Rubin of Google in claiming that his customers do not require a feature so prevalent nowadays that it has become close to a basic standard. While the Xbox 360 and PS3 are capable of streaming full HD movies from Netflix at no extra cost, Reggie has stated his belief that "there really is no loss for the Wii consumer" because "the vast majority" of Netflix streaming content isn't HD anyway. Reiterating his longstanding, but never adequately explained, hesitance toward HD, Reggie has also claimed that the 26 million Wii console owners out there have voted with their wallets and will be quite happy to continue putt-putting along at standard def. Skip past the break to see him speaking his heresy with a straight face.
Netflix CEO upbeat on chances of Nintendo console streaming
The eventuality of Netflix becoming available on a Nintendo console has left the world of "if" and seems headed for "when." According to Engadget, Netflix CEO Reed Hastings described chances of the company's movie streaming service "getting on Nintendo" as "excellent." Netflix has been singing the same song since last October, when PS3's Netflix streaming was announced. We've contacted Netflix and asked whether it would like to announce any firm commitments about its plans for the Wii. If there is anything "iffy" about Netflix streaming for a Nintendo console, it revolves around whether the service will be available for the current Wii console, or any possibly far-fetched followups.
Chances of Netflix on Nintendo 'excellent,' says Netflix CEO
In case you missed it last night in the All Things D event -- and frankly, given the length and general jejune of it, we wouldn't blame you -- Reed Hastings of Netflix took the stage and sat down with Peter Kafka. Here's the takeaway: when Kafka asked him the chance of "getting on Nintendo," Hastings replied, "our chances are excellent." It's not much, but after at least a year of hints and teasers, it's by far the best confirmation we've got. Of course, he didn't say which system, but let's be honest... the only logical choice is DS, right?
Live from All Things D at CES 2010
We're live at the All Things D event at CES 2010. We're slated to see conversations with Jon Rubinstein, Reed Hastings, and Andy Rubin, so stay tuned -- we start at 3:30PM PT!
Netflix CEO wants streaming service on all consoles
While Microsoft and Netflix underlings tiptoe around the issue of the movie-rental company's streaming service for other game consoles -- currently "exclusive" to Xbox 360 -- Netflix CEO Reed Hastings tells Reuters he wants the feature on every console. The executive notes that "currently [Netflix's] Xbox deal is exclusive and [Netflix hasn't] characterized it more than that," leaving the door at least slightly ajar for other consoles and media devices to enter into Netflix streaming deals of their own. That's the big question: For how long is the exclusivity agreement between Netflix and Microsoft, and is it renewable? Answering that question -- believe us, we've tried -- would tell us when to expect a flood of Netflix-streaming systems. [Via Edge]
Netflix CEO dreams of iPhone, TV, and game console ubiquity
When a CEO is asked to dream we shouldn't be surprised when he dreams big. In an Reuters interview with Netflix CEO, Reed Hastings, we learn that Netflix is working in parallel to bring its services to "all the game consoles, all the Blu-ray players, all the Internet TVs." Naturally, he added that the Xbox deal is exclusive for the time being. The company is currently focused on the big screen but "will get to mobile eventually, including the iPhone." And while the streaming business is "booming," he says the DVD business is still growing as well, likely peaking in "5 years or so" with people still doing DVD-by-mail over the next 20 years. Reed then adjusted his monocle and disappeared in a flash of cigar and brick-and-mortar ash.[Via All Things Digital]
Netflix CEO predicts significant declines in packaged media rentals by 2018
Some think that discs are already dead, but that's because they're ignoring all the success Netflix is still having. Of course any company with a name like Netflix is obviously forward thinking -- the name isn't Discflix after all -- and on that note Reed Hastings, the CEO, told the WSJ that he expects to see significant declines in packaged media rentals in the next "four to nine years." We think that estimate is as good as any, but can't wait to see how the home media landscape changes between now and then. This is of course why Netflix is actively building it's streaming service which evidently is currently only used by 20 percent of Netflix customers.
Netflix earnings call roundup: Testing Saturday shipments, 700k Blu-ray subscribers and even more streaming
All week, we've seen stats, figures and speculation based on Netflix's earnings call leaking out, and here's a few more interesting notes gathered from around the Internet for those not glued to their speakerphone Monday. Checking in to the party was always talkative analyst Michael Pachter, suggesting that the Xbox Live / Netflix combo could bring more than 1 million gamers to Netflix over the next year, with the service becoming a "gold mine" for the video rental company. At the same time, while CEO Reed Hastings touted "millions" served by Watch Instantly streams, the number of Blu-ray subs rose to 700,000, up from 500k at the beginning of December. Whether you count that as a victory for digital distribution or old school discs, those still checking their mailbox will be happy to know the company is testing Saturday shipping in certain regions...as long as the USPS keeps mailing six days a week.Read - Netflix testing weekend shippingRead - Netflix: Blu-ray adoption slow than Internet movie streaming adoptionRead - Xbox Live is proverbial gold mine for Netflix says Pachter
Netflix concept spurred by $40 VHS late fee -- who knew?
We've listened to Netflix founder and CEO Reed Hastings talk business about his company, but how's about a little background? After announcing a momentous Q4 while practically every other outfit on the planet hung their head in shame, the understandably elated exec sat down with Fortune to explain how Netflix came to be. As the story goes, Reed lamented the $40 fee he was nailed with upon returning a VHS copy of Apollo 13 in 1997. Soon after, he began to research the idea of starting a rental-by-mail outfit. Interestingly enough, the subscription based model that nearly 10 million people enjoy today was something that came after the first concept, but obviously he hasn't tried to mess with the magical elixir very much sense. Have a look at the read link for the full writeup.
Netflix's Reed Hastings talks future technologies, streaming
CES 2009 may be a fading memory, but Netflix's founder and chief executive Reed Hastings took time in Vegas to talk about technologies that should be affecting us for years to come. In an interview with The New York Times, Hastings proudly confessed his belief that within two years, "WiFi and Netflix would be built into all televisions." He also speaks at length about how the world wide web is becoming more accessible on the TV, noting that big things could happen if more potent processors and additional memory were stuffed into future HDTVs. Sadly, when asked about why Watch Instantly didn't include brand new releases, Reed simply stated that Netflix "doesn't think of it in title count... it thinks about it in terms of volume and having an even better experience" than is currently offered. Sure, we appreciate improvements in speed / quality / etc., but don't pretend like new releases aren't high (high!) up on the wish list of avid Watch Instantly users.[Image courtesy of Syracuse]
The rumors of Blu-ray's death are greatly exaggerated
Just like clockwork, whenever the world of digital downloads has some big news, many so called technologist start proclaiming the death of physical media; meanwhile, those who actually understand the business can't help but laugh. Those who proclaim the death of Blu-ray will one day feel as silly as those who proclaimed the death of VHS in the 90's because of the birth of VOD, because here we are over ten years later and JVC just now stopped producing stand-alone VHS decks and combo units still sell -- why, is beyond us though. The reality is that little shiny discs aren't going anywhere anytime soon, and because of the similarities between DVD and Blu-ray -- and CDs for that matter -- the possibility of Blu-ray becoming the next LaserDisc isn't likely. This is because unlike LD -- which was a very successful format by Hollywood's measure -- Blu-ray players will soon (12 to 18 months) push DVD players completely out of the market as the prices continue to diminish. While at the same time, most Blu-ray players play DVDs better than DVD players do. But regardless of DVD vs Blu-ray, what these technology pundits really mean is that the age of digital downloads is upon us and that physical media is dead. And while everyone knows that the death of physical media is inevitable, the time frame is really what's in question. We could just as easily make our own predictions, but instead of taking the risk of looking stupid, we'll quote Reed Hastings, the CEO of Netflix, who when asked if all the new streaming services would negatively affect its DVD business, responded with "the typical streaming customer differed from the typical DVD subscriber; so comparing the two wouldn't make sense."
Netflix CEO joins Microsoft board
Netflix CEO Reed Hastings, the man who changed the way America rents movies, has joined the board of directors at Microsoft. There's no further announcement beyond this simple, but possibly monumental, change to the Microsoft board.Microsoft has been getting into video downloads with Xbox Live, but now combine that concept with the brand power and ethos of simplicity behind Netflix, and you've got yourself, well, we don't know ... but it brings us one step closer to an all-in-one box for our television.If Netflix service were incorporated into the Xbox 360, it would change the way we rent movies once again, and be a Halo-level killer app. for the console. As long as the Xbox 360 continues growing its potential, but doesn't lose sight of its gaming core, we'll be fine. We cross our fingers for a Netflix related announcement before 2008. Consumers rejoice, this could lead to good things.
Netflix founder joins Microsoft's board
Get ready to mop the juices fanboy, Microsoft just announced that Reed Hastings, chairman and chief executive of Netflix, will join their 10-member board of directors. So Microsoft -- the people behind the Xbox Live video-download service -- and Netflix -- recently seen pushing into digital delivery of video -- are now officially in cahoots. Of course, we must be careful about reading too much into board-level appointments. After all, no business deals were included in the announcement. But damn if this doesn't sound like a potential win-win for both camps: Microsoft could quickly extend their meager video catalog while Netflix finally lands themselves a living room box. With both facing stiff competition from the likes of Amazon/TiVo, Wal-Mart, and now Apple, it sure smacks of something in-the-works, eh? Oh, and it wouldn't be too bad for us consumers either. [Via Business Journal, Thanks Dave K.]
