Even with all that money rolling in from the just-activated price hike, Netflix can’t afford to renew a deal with Starz that brings first-run Disney and Sony movies to the streaming network service. Actually, strike that: they probably can afford it, but Starz just doesn’t want Netflix’s money. Starz just announced it was walking away from the negotiation table despite the $300 million cash pile that Netflix reportedly threw down.
That rumbling you hear off in the distance is not thunder. Rather, it's the sound of millions of Netflix users quietly cursing as the new higher rates kick in. It was mid-July when the disc and streaming supplier announced the updated plans, and this is the day it all goes down. Will there be fallout?
The red envelope of Netflix continues its global expansion with official word that the service will be coming to Spain in January 2012. The move was confirmed by Pedro Perez of FAPAE, the Spanish Spanish producers association. Netflix has caught fire in many territories throughout North and Central America, but faces an uphill battle in Spain, a country famous for high levels of piracy.
Tech-savvy parents know there is a lot of kid-friendly content on Netflix. The only problem is that many young ones lack the reading ability or manual dexterity to navigate to the shows themselves. Enter the Netflix “Just for Kids” section. This new UI is being previewed for some users already, but the company hasn't said anything about it.
Hulu’s international plans have been the subject of much speculation in recent months as Netflix begins its worldwide expansion. The video streaming service had finally made its first move. Hulu will be available to Japanese users later this year.
A new survey by market research firm Nielsen examines the viewing habits of both Netflix and Hulu users, and there's a definite disparity in how each one is accessed. When it comes to watching Netflix content via streaming, half of all viewers tap into the service's online catalog through their Xbox 360, PlayStation 3, and Wii consoles, whereas nearly nine out of 10 (89 percent) of Hulu users watch videos directly on their computer.
Netflix acknowledged in its Q2 earnings report that its recent price hike will likely cause revenue to fall in the third quarter before rebounding in the fourth. Investors responded by feeding the hybrid DVD-by-mail/streaming movie service a heaping slice of humble pie in after hours trading, sending the company's sky-high stock price down more than 10 percent.
We know that a lot of you are mighty sore about the recent hike in Netflix rates, but according to sources, they’re putting that money to use. Netflix has reportedly worked out a deal with DreamWorks Animation to get the studio's films on the Internet company’s streaming service.
From a semi-conspiracy theorist standpoint, it seems pretty obvious that Netflix wants to phase out its DVD business entirely by weaning all of its subscribers over to its streaming-only plan. If Netflix truly wants to go all-in with its streaming service -- and it should be noted that company CEO Reed Hastings has never been bashful about Netflix being primarily a streaming service going forward -- it will have to overcome certain challenges, one of those being the persistent outages that so vex its subscribers, like the one that took place over the weekend.
Netflix has been facing a ton of consumer backlash over its recently announced price hikes, and while the company has been fairly tight lipped when it comes to explaining why it was necessary, the Associated Press claims to have the answer. According to sources close to Netflix, the company simply underestimated how long it would take to convert customers over to a streaming only future, and was stuck with a business model that simply couldn’t keep up with their long term goals.