Reed Hastings
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Netflix co-founder Reed Hastings steps down as co-CEO
Netflix co-founder Reed Hastings is stepping down from his joint CEO role.
Netflix CEO says time spent streaming matters more than subscriptions
Netflix founder and CEO Reed Hastings doesn't have any beef with other streaming services, and is actually planning on subscribing to Disney+ when it launches. These are just some of the insights he shared at the New York Times' DealBook conference on Wednesday.
Netflix CEO claims Amazon losing up to $1 billion a year in streaming video war
Netflix isn't sinking, but it's certainly not the soaring brand it once was and has endured its fair share of struggles over the last several years. But, if you think Reed Hastings is shaking in his boots over encroaching competition you'd be wrong. The CEO says that Amazon will pose a legitimate threat to its streaming video dominance, but that day is still a long way off. He claims that the Kindle purveyor is losing between $500 million and $1 billion a year as it builds its empire and secures licensing rights. Of course, Hasting's comments during an interview with Dow Jones are largely speculative; based on the value of deals in which the two have competed directly. Then again, there seemed to be some implicit admission of the costs and struggles associated with competing in the subscription video sphere during its Q3 earnings report. The company lowered its forecast for the next quarter, saying it could lose as much as $490 million.
Netflix Q2 2012 earnings: 530,000 more US subscribers and a return to profitability
Netflix recently let it drop that its users clocked in more than one billion hours of content-viewing in the month of June alone, although the big question for CEO Reed Hastings is how that relates to the company's subscriber base. The results are in from its Q2 2012 earnings report, and it's claiming 27.56 million streaming subscribers worldwide, up from 26 million last quarter. In the US alone that includes 23.94 million customers, after it reported 23.4 million in Q1, while DVD customers dropped by 850k to 9.24 million. While the number of new subscribers wasn't as high as some had hoped, the good news is the company is finally back in the black, with $889 million in revenue providing $6 million in net income. On the flip side, a plan to launch service in an "additional attractive European market" in Q4 is expected to result in temporary losses, but we'll find out more about those plans later in Q3. One other issue that has been resolved is the search for a new Chief Marketing Officer resulting in the hiring of Kelly Bennett, formerly a marketing executive with Warner Bros. This morning Verizon and Redbox began to carefully pull back the cover on their competing offering, and Amazon has also been making significant waves in the space. However in response, Netflix says Amazon and Hulu Plus have yet to gain meaningful traction in relation to its viewing hours, and it expects Redbox Instant to face a "big challenge" to break into the existing top 3. Its current content deal with Epix will lose online exclusivity "shortly" although it will still offer those titles, we'll see if any of the competition joins in. Their biggest competition however, is expected to come from efforts like Comcast's new X1 and Sky's Now TV, while for HBO, the possibility of cooperation is actually raised (again). We'll see if that happens or if there are any more juicy details revealed on the investor call in a few minutes.
DOJ looking into whether Comcast, other TV giants are unfairly (knee)capping Hulu, Netflix
The Department of Justice may have taken Netflix chief Reed Hastings' net neutrality complaints about Comcast as a lot more than just sour grapes. It's reportedly conducting an investigation into whether Comcast, AT&T and other TV providers are anti-competitive in their data restrictions. The Wall Street Journal cites primary concerns that Comcast's Xfinity TV cap exemption might unfairly punish competing services, but also claims that officials are worried the caps themselves steer viewers away from internet video, helping the incumbents cling to legacy TV for just a little while longer. On top of its cap anxiety, the DOJ may be looking into policies requiring traditional TV subscriptions just to watch online. None of the involved parties have commented on or confirmed the investigations, so there's no guarantee of any full-fledged lawsuit. Still, while TV operators insist they're being fair and need to keep data use in check, that might not deter legal action when the DOJ has supposedly questioned Hulu, Netflix and other relative newcomers who feel they're being squeezed. When Sony postpones its IPTV goals after fretting over US data caps, it's hard to imagine that there aren't at least a few raised eyebrows in Washington.
Netflix Q1 results: 3 million new streaming subscribers worldwide, record viewing hours
Netflix has posted its earnings report for Q1 of 2012, and reveals its streaming subscriber count in the US is currently 23.4 million, after reaching 21.67 million back in January. While the company noted a net loss of about $5 million, the letter from CEO Reed Hastings and CFO David Wells claimed it is still on a "rapid return" to profitability after last year's missteps and international expansions. Worldwide it now counts a total of 26 million subscribers to the streaming service, although it lost another million or so subscribers to discs, which currently number 10.09 million. That old disc business is still highly profitable however, adding $146 million to the bottom line. Internationally, Netflix added more customers in its first three months of UK / Ireland availability than it did in the same period for Latin America or Canada, and expects its Canadian service to be profitable a quarter earlier than expected. Reed Hastings also took the opportunity to toss another barb at Comcast for its bandwidth cap-exempt Xfinity TV Xbox 360 app, claiming it should either raise its caps, make them apply to all services including its own or eliminate them entirely. Another development in Q1 was the loss of streaming titles from Starz but it claims that caused no discernible change in viewing or subscriber hours, while customers continue to lean towards streaming TV episodes over movies. Hit the source links below to paw through the PDF and spreadsheet for yourself, we'll let you know if any interesting tidbits are revealed on the earnings call later today.
Reed Hastings takes Comcast to task for skirting net neutrality
Netflix CEO Reed Hastings let loose a mini rant on Facebook Sunday, setting his sites squarely on Comcast and its data accounting practices. Highlighting one of the arguments for net neutrality, Hastings pointed out that viewing streaming videos using the Comcast Xfinity app on his Xbox doesn't count against his monthly cap, but other services do. "If I watch last night's SNL episode on my Xbox through the Hulu app, it eats up about one gigabyte of my cap, but if I watch that same episode through the Xfinity Xbox app, it doesn't use up my cap at all." It's slightly odd that different rules would apply to the same device using the same connection to stream the same content from different sources -- and exactly the sort of preferential and self-promoting behavior that net neutrality advocates are afraid will become the norm in an unregulated market. Of course, Hastings is also irate because his own company would love the same preferential treatment, but hasn't been able to close any deals. For the full rant hit up the source link.
Netflix drops plan to offer video games like it was Qwikster
Netflix CEO Reed Hastings, who you may remember from his Match.com profile video explanation video of Netflix's aborted split into two companies, said Netflix has no plans to offer video games right now, speaking in a Q4 investor meeting today. Hastings didn't offer more details on far-future plans, but he did confirm Netflix is investigating 3D streaming options to supplement its Blu-ray 3D disc service.For now, it looks like gamers all will be getting is digital and physical disservice.
Netflix is looking for a new Chief Marketing Officer, if you think you can do better
Considering how 2011 progressed for Netflix, it's not entirely surprising to hear some changes are in store at the top when it comes to marketing and communications. The video rental giant announced that its Chief Marketing Officer of the last dozen years, Leslie Kilgore, will be taking a position on its board as a "non-executive director", replaced in the interim by Jessie Becker as it conducts an external search for a permanent replacement. Also shifting positions is Jonathan Friedland who will be the new Chief Communications officer, and both Becker and Friedland will report directly to CEO Reed Hastings. Netflix's relationships with its customers were definitely damaged by last year's price hike and the shocking Qwikster spinoff announcement / unannouncement that followed, with a slate of original content on the way and some changes in store for its content licensing, we'll see if it can get the magic back in 2012 -- we're not so sure that the latest round of ads featuring beavers and hamsters (one's embedded after the break) are the way.
Editorial: Reed Hastings' Netflix spinoff isn't about DVD success, it's about hedging the stream
If you've just casually glanced over the mass reactions to Reed Hastings' decision to split the DVD-by-mail business of Netflix into its own brand and company, you've probably been duped into thinking that it's the second questionable move that the world's most famed movie delivery service has made this year. But is it? Is a man who turned a red envelope into a symbol of near-immediate gratification really a moron? Did he really just bury the company he worked tirelessly to create? I highly, highly doubt it. Knee-jerk reactions are always fun to watch, but they're rarely on-point. As with most things in life, the truth usually resides somewhere in betwixt the extremes. And in the case of Qwikster -- the DVD-by-mail service that precisely no one asked for -- the truth is hiding in exactly the place that Reed said it'd be: the future.
Netflix's DVD division renamed 'Qwikster,' adds games-by-mail
Netflix made waves a few weeks ago when it split its streaming and DVD-by-mail services into two separate plans with separate prices, but these measures were apparently more preparatory than reactionary, it seems. Netflix CEO Reed Hastings has announced that the movie megalith's DVD-by-mail devision will be separated from its streaming services and spun off into its own company: Qwikster. Qwikster, which will officially launch "in a few weeks," will be a completely independent entity from Netflix; the two services will not integrate in any way, meaning two different websites, two different accounts, and two different bills. What's truly out of left field, however, is the fact that Qwikster will also offer PS3, 360 and Wii titles by way of a "video game upgrade option" similar to Netflix's existing Blu-Ray upgrade system. Despite the fact that Qwikster will be its own corporate entity with its own CEO, Hastings stresses that the transition is "merely a renamed version of the Netflix DVD website, but with the addition of video games." It will be interesting to see how the service fares without Netflix's all-powerful brand recognition, and what impact (if any) the change will have on other game-by-mail services like GameFly. For now, we just hope this news somehow translates into more SGT. Frog episodes getting added to Instant Play.
Netflix spins DVD-by-mail service off into Qwikster, says it's 'done' with price changes (video)
Over on Netflix's official blog, company head Reed Hastings has announced in a surprisingly humble blog post and video (embedded after the break) that it's splitting the DVD-by-mail business away into a new venture dubbed Qwikster. While the recent price changes already split the cost for each service, when this takes effect in a few weeks it will result in two different websites, two different sets of movie ratings and queues, and two different charges on customer's bills. He admits two separate sites may make it more difficult to manage a presence on both, but says dropping the need for compatibility between the two will enable new features to balance that out. Another change? Netflix Qwikster (is there anything good about that name?) is getting into video game rentals, available for an extra charge similar to the existing Blu-ray disc option. While the blog post blames a lack of communication for much of the backlash (and obviously cancellations), it's about to become very clear that Netflix is "primarily a streaming company." Also mentioned is "substantial" additional streaming content coming in the next few months. Whatever the company calls itself, charges, or changes on its website, if Netflix wants to talk its way back into subscriber's good graces, starting with something new to watch is the way to do it.
Netflix CEO Reed Hastings joins Facebook's Board of Directors
News that Netflix's CEO Reed Hastings is joining the Board of Directors for Facebook should make for an interesting note in the next movie, but beyond that it's unclear what it means for either company. Hastings successfully navigated Netflix through the process of going public which many assume will be a next step for the social media giant, so his experience could come in handy, and also serves on the board of Microsoft, which owns a stake in Facebook. That goes without mentioning plans by Netflix to make another run at integrating social features into its movie service after the original implementation fell apart and Warner Bros. recently offering video on-demand through Facebook. Other than facing a lawsuit from Paul Allen, Netflix and Facebook share an intense public backlash whenever either one changes their homepage, but we're not sure how he could help there -- have you seen the redesigned Netflix.com?
Netflix: 'we're going to continue our international expansion next year'
Three months after Netflix invaded Canada with a bizarre combination of paid actors and $8 instant streaming plans, CEO Reed Hastings the company has declared the move a success and says it will expand its service to other countries in 2011. "Based on the early success of Netflix.ca we're going to continue our international expansion next year and we're going to allocate significant dollars to it," spokesman Steve Swasey told The Canadian Press, without specifying which territories or how many might be blanketed with Albanian soldiers next. However, Canadians and others hoping to get an experience completely on par with the original US service shouldn't hold their breath, as Swasey says there are no plans to establish a movie queue for the streaming-only service, calling it a "strategic decision." Update: The above quotes were attributed to Netflix's Steve Swasey, not CEO Reed Hastings. Our bad.
Netflix CEO says consumers just aren't interested in long-form video on portable devices
We were undeniably excited about Netflix coming to the iPhone and iPad, but according to CEO Reed Hastings -- who spoke on the subject during a Web 2.0 Summit panel discussion -- that move has actually had little impact on the company's business. In his mind, these results indicate that consumers just aren't interested in streaming long-form video on mobile devices and instead prefer the experience on bigger screens. To support his conclusion, Hastings cited how Netflix integration on the Xbox 360, PS3, and Mac significantly grew its subscriber base. While we personally disagree with his judgment on mobile and grant him honorary captain obvious credentials for his bigger screen preference remarks, we'll still entertain the possibility that Hastings may know somethings we don't. That's not to say the phrase correlation does not imply causation isn't tickling the back our throat though. But what about you, reader? Are you taking advantage of the little red app on your Apple portable devices or even on your new Windows Phone 7 handset? Hit the poll on the next page to tell us what's up.
Netflix 'now primarily a streaming company,' could offer DVD-less plan this year
It seems like just yesterday we were celebrating Netflix's 2 billionth disc sent, but in announcing the company's Q4 financial results, CEO Reed Hastings called his baby "primarily a streaming company that also offers DVD-by-mail." Other notes include an indication that a streaming only plan for US customers, mirroring its offering in Canada, currently in limited testing could become widely available later in the fourth quarter of this year, with a potential that "pure streaming" could become the core package for Netflix going forward while DVDs might require a premium service charge like Blu-ray does now. So what comes next? If all goes according to plan, expansion beyond North America in late 2011, continuing to add more streaming content and improving the UI on other devices.
Netflix CEO looking into streaming-only option for US 'over the coming months'
Netflix CEO Reed Hastings may be stumbling over a publicity misstep or two since launching in Canada just yesterday, but he sure knows the right mea culpa to give. In a blog post entitled "Apologies" -- which, amusingly enough, is published just after "We Blew It" -- the King of the Red Envelope says, "we are looking at adding a streaming-only option for the USA over the coming months." No prices are discussed, but our educated guess would place it parallel to Canada's streaming-only plan, $7.99 monthly. Would we be willing to drop all physical media in exchange for at least one extra dollar per month? Now that's a good question.
Netflix to launch streaming-only service in Canada Wednesday
Get ready Canada, Netflix CEO Reed Hastings is reportedly due in Toronto Wednesday to kick off Netflix streaming service to your country. You'll be the first to experience Netflix as a strictly digital service, with no discs by mail of any kind involved. We'd speculate further on the pricing, but right now we just don't have the heart, or the ammunition, to make any exchange rate jokes.
Netflix survey inquires about iPhone streaming, even though CEO says 'not coming soon'
Today's movies-in-motion tidbit comes courtesy of Mike over at the Hacking Netflix blog, who let us know that some of his readers are receiving the popup survey above. It inquires as to the reader's interest in a form of Netflix streaming (Wi-Fi only, unsuprisingly) for the iPhone. That's the same streaming for iPhone/iPad that Netflix CEO Reed Hastings called "not a priority" and "not near-term" as recently as last month. While it's tempting to see this survey as a sign of an imminent iPhone or iPad app full of streaming movie delights -- assuming such an app would make it into the App Store through Apple's "user confusion" gauntlet, which is by no means a sure bet -- don't throw away your iTunes gift cards just yet. The first hints of Netflix's upcoming Wii streaming capability, which is due to launch sometime this spring, also appeared in a survey on the company's site... back in March of 2009, almost 10 months before the announcement of the Wii feature. While such a feature would be quite popular (all of the game consoles have some streaming functionality already, and two-thirds of subscribers have used the service), it seems like we may have a while to wait. Read on to see the full survey text. [H/T 9to5Mac]
Nokia, Nintendo, Netflix and E-Ink respond to the iPad
We're sure just about every company on the map has an opinion on Apple's new device, but a few big wigs have taken time out of their busy schedules to weigh in on the device. These are their stories. Nokia's Mark Squires, Head of Social Media, was mainly confused by Apple's statement that it's the biggest mobile device manufacturer, surpassing Nokia in combined revenue on media players, phones and laptops. Mark argues that the accepted definition for "mobile devices" excludes laptops, and goes on to mention the undisputed fact that Nokia's still number one when it comes to number of devices sold. Netflix CEO Reed Hastings, meanwhile, says that mobile devices aren't a priority for his company yet. They're fighting the good fight of the large screen, and once they feel comfortable in their various efforts there, then they'll move on to small screens. Netflix hasn't done or submitted an iPhone application, but Hastings did mention that he was optimistic that if Netflix did get into the game, the app would be approved for the App Store, and that it would run on both the iPhone and iPad. Satura Iwata, president and CEO of Nintendo, took a much more directly critical approach to the device, calling it a "bigger iPod Touch," and that Apple delivered "no surprises." In the same interview he expressed skepticism as to the value of bringing a high definition Wii on the market, as well as expressing doubts about 3D glasses-based gaming. Iwata is clearly a tough man to please. Perhaps most threatened by the iPad is Russ Wilcox, CEO of E-Ink. He says dedicated e-readers will outsell iPads due to "simple economics," and that the iPad is "great entertainment device," but it's "not the world's best reading device." His criticisms, mostly in juxtaposition to Kindle-style devices, abound, including price, weight, backlight and so on. He's right on the money about the shortfalls of a straightforward comparison, but we wonder if consumers will feel the same? Nothing too salacious, unfortunately, and most of the points raised are pretty spot-on -- though we do wish Reed Hastings would rethink his priorities just a smidgen and get Netflix onto mobile devices sooner than later. We're needy like that.
