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« Reply #150 on: January 18, 2016, 06:34:18 AM »

Netflix's growth elicits fear in Hollywood
by Yvonne Villarreal and Meg James

Time Warner Chief Executive Jeff Bewkes once likened Netflix to the "Albanian army."

That army now has more than 70 million subscribers in nearly 200 countries — and may well be the most feared force in Hollywood.

The Los Gatos, Calif., company has moved from its foundation as a video rental business to become an entertainment juggernaut generating award-winning content for both its digital streaming service and theatrical releases. Many of Hollywood's most talented writers and producers take their proposals to Netflix first.

It's also a Wall Street favorite valued at nearly $45 billion, giving Netflix financial firepower to go with its impressive subscriber base.

"Every single day in my company, and I know in other companies, there's a question of: 'Did we do something ... to build a monster that will come back to kill us?'" NBCUniversal research President Alan Wurtzel said last week at the Television Critics Assn. media tour in Pasadena.

The tipping point came last summer when Walt Disney Co. revised profit expectations for its cable channels including ESPN, reflecting an industrywide shift as more consumers cut their cable offerings in favor of Netflix or other services. The news triggered a sell-off of media stocks, erasing nearly $50 billion in market value in two days.

Media stocks have not recovered, and executives such as Bewkes have signaled a possible change in their dealings with Netflix and other digital outlets. He said Time Warner was considering holding onto episodes of its shows longer before making them available for video-on-demand services.

"Media companies are saying: 'We are cutting our own throats here, and we're bleeding,'" said Doug Creutz, media analyst with Cowen & Co.

Hollywood long has had a love-hate relationship with Netflix. The honeymoon began when Netflix was just a scrappy vendor that would buy DVDs of movie and TV shows and send them in red envelopes to customers across the country (which it still does). The business generated revenue for the studios through increased DVD sales. Then, in 2007, Netflix added a streaming option and provided studios with even more money for the rights to their old movies and TV reruns.

But tensions have escalated as Netflix has become the go-to destination for millions of viewers who are attracted by its low cost — $9.99 a month — ease of use and commercial-free programming.

"Netflix has been built on the back of great content from studios like our own," Fox Television Group Co-Chairman Dana Walden said in an interview at the Television Critics Assn. media tour. "It has helped to reinvigorate fan bases of shows. But from the network side, it's very challenging. They're a competitor."

Last year, Netflix Chief Executive Reed Hastings ribbed the traditional TV networks, likening them to a fax machine — amazing in the 1980s but now outdated. At the CES technology conference this month in Las Vegas, Hastings told attendees they were "witnessing the birth of a new global Internet TV network."

At a pre-Golden Globes party at Ted Sarandos' home in Hancock Park the following night, Netflix's head of content was still reveling in the achievement.

"Everywhere in the world, your shows are on Netflix and people are enjoying them right now," Sarandos told the crowd that included comedians Chelsea Handler and Aziz Ansari and the cast of "Orange Is the New Black." A few partygoers whooped and cheered.

Netflix has been ramping up production of shows that will be exclusive to the service. It plans to make 600 hours of original programming in fiscal 2016.

That puts it on par with what a broadcast TV network airs in prime time. Netflix's slate includes new seasons of "House of Cards" and "Grace and Frankie" and the debut of "Fuller House," a remake of a hit 1980s sitcom.

Netflix also has been rattling the movie theater industry by streaming its own original films on the same day they arrive in cinemas. Fearing a threat to their industry, some cinema chains have refused to distribute Netflix films, including its acclaimed "Beasts of No Nation" and the sequel to "Crouching Tiger, Hidden Dragon," which will premiere next month on Netflix and at select Imax theaters.

Once a footnote at the Television Critics Assn. media tour, where TV networks showcase their upcoming series, Netflix on Sunday presented 14 panels with an all-star lineup of some of its most popular shows. Just outside the main room where Sarandos spoke, a replica of the "House of Cards" oval office was on display, along with exhibits of costumes for shows such as "Jessica Jones" and "Unbreakable Kimmy Schmidt."

One potential obstacle to Netflix's global ambitions, however, is that many studios refuse to hand over international rights for the TV shows they sell to Netflix. The studios want to hold onto those lucrative rights for themselves as they expand their own operations in other countries.

"Every year the exclusions of different countries in our licensing agreements become less and less," Sarandos said at the TV critics media tour. "Our ultimate goal is that Netflix is basically the same everywhere in the world. That being said, there are existing output deals that tie up some of the content for years."

Media executives view Netflix with a mix of admiration and fear. The concern is Netflix has been instrumental in encouraging consumers to drop their pay-TV subscriptions in favor of a streaming service. In consumer satisfaction surveys, Netflix wins high marks in contrast to cable TV companies, which have a reputation for poor customer service.

"It started out with Netflix wanting admission to the party. Then they got in and mingled well with the TV guys," said FBR Capital Markets analyst Barton Crockett. "But now they've become so strong and the life of the party that now those TV guys are wondering if maybe they liked Netflix too much, too soon."

TV networks must fight with Netflix for premier projects, and in many cases producers are attracted by Netflix's talent-friendly culture that allows them to take more creative risks because Netflix is not beholden to ratings or advertisers.

Netflix also ushered in an era of binge-viewing that has helped train viewers to opt for on-demand commercial-free programming. That culture threatens another pillar of media: advertising revenue. TV companies receive about $70 billion a year in ad revenue, according to Kantar Media.

Media companies have responded to Netflix's incursion and the changes in consumer behavior by launching their own streaming services. NBCUniversal unveiled a comedy outlet called SeeSo, CBS has CBS All Access, and premium channels Showtime and HBO have direct-to-consumer offerings.

Studios also are selling more shows to Amazon.com and building Hulu into a more vibrant competitor to Netflix. Hulu last year nabbed streaming rights to the entire "Seinfeld" library, as well as licensing deals with AMC, Discovery, Turner Broadcasting and FX Networks. Epix began steering its movies to Hulu last summer when its pact with Netflix expired.

"Studios and networks are clearly interested in seeing other players balance out the strength of Netflix," Crockett said.

Netflix, Sarandos said, appreciates the business challenges that traditional media companies face.

"There's a lot of chaos in the media space," Sarandos told The Times. "The emergence of subscription video-on-demand, and what it means to linear television and the value of cable channels — all that stuff — it's all very complicated for them and they're trying to manage."

In fact, media companies have made hundreds of millions of dollars by selling their shows to Netflix, including old product from their libraries whose shelf life on TV had long passed. Netflix also has become a hungry buyer of new originals, and has ordered such shows from traditional studios — including Warner Bros., which produces three originals for Netflix. Disney produces Marvel shows for Netflix, including "Jessica Jones" and "Daredevil," and Sony Pictures Television has two projects in the works.

The small CW television network, owned by CBS and Warner Bros., lost money for years until 2011 when it struck a four-year, $1-billion deal to provide its programming, including "Jane the Virgin" and "Arrow," to Netflix. The network finally turned a profit. On Friday, Fox announced that it was reviving its canceled drama "Prison Break" because audiences were devouring old episodes on Netflix.

"Netflix is a great revenue source for them, and they're trying to figure out how do they make sure this revenue source doesn't undermine their long-term economic health," Sarandos said. "They're just trying to navigate those waters."

Many point to the "Breaking Bad" effect to illustrate how Netflix can be friend and foe. The AMC drama, about a chemistry teacher-turned-meth dealer, was a middling performer for the cable channel until its fourth season, when many viewers discovered it on Netflix. The show's audience steadily grew, and by its fifth and final season had shot up in the ratings. Still, some viewers waited to see the episodes on Netflix and they associated "Breaking Bad" with Netflix — not AMC.

Some TV executives believe the Netflix threat might be overblown.

"The reports of our death have been greatly exaggerated," NBCUniversal's Wurtzel said.

Wurtzel cited research from independent firm Symphony Advanced Media that showed that although Netflix makes a pop with its original shows, viewers might binge on episodes for a few days, or even a few weeks, but then return to traditional viewing patterns. Viewers watch an average of 5.43 hours per day of programming, according to Nielsen data, and about 28 minutes of viewing is through services such as Netflix and Hulu.

In contrast, viewers spend more than four hours a day watching broadcast and cable TV.

"People are watching TV the way God intended," Wurtzel said.
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« Reply #151 on: January 18, 2016, 02:16:15 PM »

Netflix's growth elicits fear in Hollywood
by Yvonne Villarreal and Meg James

Time Warner Chief Executive Jeff Bewkes once likened Netflix to the "Albanian army."

That army now has more than 70 million subscribers in nearly 200 countries — and may well be the most feared force in Hollywood.

The Los Gatos, Calif., company has moved from its foundation as a video rental business to become an entertainment juggernaut generating award-winning content for both its digital streaming service and theatrical releases. Many of Hollywood's most talented writers and producers take their proposals to Netflix first.

It's also a Wall Street favorite valued at nearly $45 billion, giving Netflix financial firepower to go with its impressive subscriber base.

"Every single day in my company, and I know in other companies, there's a question of: 'Did we do something ... to build a monster that will come back to kill us?'" NBCUniversal research President Alan Wurtzel said last week at the Television Critics Assn. media tour in Pasadena.

The tipping point came last summer when Walt Disney Co. revised profit expectations for its cable channels including ESPN, reflecting an industrywide shift as more consumers cut their cable offerings in favor of Netflix or other services. The news triggered a sell-off of media stocks, erasing nearly $50 billion in market value in two days.

Media stocks have not recovered, and executives such as Bewkes have signaled a possible change in their dealings with Netflix and other digital outlets. He said Time Warner was considering holding onto episodes of its shows longer before making them available for video-on-demand services.

"Media companies are saying: 'We are cutting our own throats here, and we're bleeding,'" said Doug Creutz, media analyst with Cowen & Co.

Hollywood long has had a love-hate relationship with Netflix. The honeymoon began when Netflix was just a scrappy vendor that would buy DVDs of movie and TV shows and send them in red envelopes to customers across the country (which it still does). The business generated revenue for the studios through increased DVD sales. Then, in 2007, Netflix added a streaming option and provided studios with even more money for the rights to their old movies and TV reruns.

But tensions have escalated as Netflix has become the go-to destination for millions of viewers who are attracted by its low cost — $9.99 a month — ease of use and commercial-free programming.

"Netflix has been built on the back of great content from studios like our own," Fox Television Group Co-Chairman Dana Walden said in an interview at the Television Critics Assn. media tour. "It has helped to reinvigorate fan bases of shows. But from the network side, it's very challenging. They're a competitor."

Last year, Netflix Chief Executive Reed Hastings ribbed the traditional TV networks, likening them to a fax machine — amazing in the 1980s but now outdated. At the CES technology conference this month in Las Vegas, Hastings told attendees they were "witnessing the birth of a new global Internet TV network."

At a pre-Golden Globes party at Ted Sarandos' home in Hancock Park the following night, Netflix's head of content was still reveling in the achievement.

"Everywhere in the world, your shows are on Netflix and people are enjoying them right now," Sarandos told the crowd that included comedians Chelsea Handler and Aziz Ansari and the cast of "Orange Is the New Black." A few partygoers whooped and cheered.

Netflix has been ramping up production of shows that will be exclusive to the service. It plans to make 600 hours of original programming in fiscal 2016.

That puts it on par with what a broadcast TV network airs in prime time. Netflix's slate includes new seasons of "House of Cards" and "Grace and Frankie" and the debut of "Fuller House," a remake of a hit 1980s sitcom.

Netflix also has been rattling the movie theater industry by streaming its own original films on the same day they arrive in cinemas. Fearing a threat to their industry, some cinema chains have refused to distribute Netflix films, including its acclaimed "Beasts of No Nation" and the sequel to "Crouching Tiger, Hidden Dragon," which will premiere next month on Netflix and at select Imax theaters.

Once a footnote at the Television Critics Assn. media tour, where TV networks showcase their upcoming series, Netflix on Sunday presented 14 panels with an all-star lineup of some of its most popular shows. Just outside the main room where Sarandos spoke, a replica of the "House of Cards" oval office was on display, along with exhibits of costumes for shows such as "Jessica Jones" and "Unbreakable Kimmy Schmidt."

One potential obstacle to Netflix's global ambitions, however, is that many studios refuse to hand over international rights for the TV shows they sell to Netflix. The studios want to hold onto those lucrative rights for themselves as they expand their own operations in other countries.

"Every year the exclusions of different countries in our licensing agreements become less and less," Sarandos said at the TV critics media tour. "Our ultimate goal is that Netflix is basically the same everywhere in the world. That being said, there are existing output deals that tie up some of the content for years."

Media executives view Netflix with a mix of admiration and fear. The concern is Netflix has been instrumental in encouraging consumers to drop their pay-TV subscriptions in favor of a streaming service. In consumer satisfaction surveys, Netflix wins high marks in contrast to cable TV companies, which have a reputation for poor customer service.

"It started out with Netflix wanting admission to the party. Then they got in and mingled well with the TV guys," said FBR Capital Markets analyst Barton Crockett. "But now they've become so strong and the life of the party that now those TV guys are wondering if maybe they liked Netflix too much, too soon."

TV networks must fight with Netflix for premier projects, and in many cases producers are attracted by Netflix's talent-friendly culture that allows them to take more creative risks because Netflix is not beholden to ratings or advertisers.

Netflix also ushered in an era of binge-viewing that has helped train viewers to opt for on-demand commercial-free programming. That culture threatens another pillar of media: advertising revenue. TV companies receive about $70 billion a year in ad revenue, according to Kantar Media.

Media companies have responded to Netflix's incursion and the changes in consumer behavior by launching their own streaming services. NBCUniversal unveiled a comedy outlet called SeeSo, CBS has CBS All Access, and premium channels Showtime and HBO have direct-to-consumer offerings.

Studios also are selling more shows to Amazon.com and building Hulu into a more vibrant competitor to Netflix. Hulu last year nabbed streaming rights to the entire "Seinfeld" library, as well as licensing deals with AMC, Discovery, Turner Broadcasting and FX Networks. Epix began steering its movies to Hulu last summer when its pact with Netflix expired.

"Studios and networks are clearly interested in seeing other players balance out the strength of Netflix," Crockett said.

Netflix, Sarandos said, appreciates the business challenges that traditional media companies face.

"There's a lot of chaos in the media space," Sarandos told The Times. "The emergence of subscription video-on-demand, and what it means to linear television and the value of cable channels — all that stuff — it's all very complicated for them and they're trying to manage."

In fact, media companies have made hundreds of millions of dollars by selling their shows to Netflix, including old product from their libraries whose shelf life on TV had long passed. Netflix also has become a hungry buyer of new originals, and has ordered such shows from traditional studios — including Warner Bros., which produces three originals for Netflix. Disney produces Marvel shows for Netflix, including "Jessica Jones" and "Daredevil," and Sony Pictures Television has two projects in the works.

The small CW television network, owned by CBS and Warner Bros., lost money for years until 2011 when it struck a four-year, $1-billion deal to provide its programming, including "Jane the Virgin" and "Arrow," to Netflix. The network finally turned a profit. On Friday, Fox announced that it was reviving its canceled drama "Prison Break" because audiences were devouring old episodes on Netflix.

"Netflix is a great revenue source for them, and they're trying to figure out how do they make sure this revenue source doesn't undermine their long-term economic health," Sarandos said. "They're just trying to navigate those waters."

Many point to the "Breaking Bad" effect to illustrate how Netflix can be friend and foe. The AMC drama, about a chemistry teacher-turned-meth dealer, was a middling performer for the cable channel until its fourth season, when many viewers discovered it on Netflix. The show's audience steadily grew, and by its fifth and final season had shot up in the ratings. Still, some viewers waited to see the episodes on Netflix and they associated "Breaking Bad" with Netflix — not AMC.

Some TV executives believe the Netflix threat might be overblown.

"The reports of our death have been greatly exaggerated," NBCUniversal's Wurtzel said.

Wurtzel cited research from independent firm Symphony Advanced Media that showed that although Netflix makes a pop with its original shows, viewers might binge on episodes for a few days, or even a few weeks, but then return to traditional viewing patterns. Viewers watch an average of 5.43 hours per day of programming, according to Nielsen data, and about 28 minutes of viewing is through services such as Netflix and Hulu.

In contrast, viewers spend more than four hours a day watching broadcast and cable TV.

"People are watching TV the way God intended," Wurtzel said.

The thing with cable is this: If youre not a big tv watcher, why pay for it? I watch a handful of channels on cable: National Geographic (and NG Wild), Discovery Channel, Investigative Discovery, and Animal Planet. So, why am I going to pay a full subscription to watch 5 stations? When I lived in California, I didn't have cable because I barely watch tv. With netfllix ($7.99 per month), Amazon Prime ($99 for the year) and the internet, I got along just fine.

What the cable companies need to do is to allow people to pay based on how many channels they want. And the consumer gets to pick the channels.

For example:

0-5 channels: $9.99 per month
6-10 channels: $12.99 per month
11-15 channels: $16.99 per month

Obviously, the above is just an example.
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« Reply #152 on: January 19, 2016, 07:47:36 AM »

 I've been wondering the same thing, SF. The only two channels I need are Daystar and El Rey so I can watch a sermon by John Hagee before I watch City of the Living Dead.
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« Reply #153 on: January 20, 2016, 07:41:21 AM »

I've been wondering the same thing, SF. The only two channels I need are Daystar and El Rey so I can watch a sermon by John Hagee before I watch City of the Living Dead.

lol. Interesting shows to watch ha lol.

But yes, cable companies need to do something like this. Wouldn't they rather give you 5 channels at a reduced price, then not have you as a customer at all?
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« Reply #154 on: January 20, 2016, 09:21:06 PM »

I've been wondering the same thing, SF. The only two channels I need are Daystar and El Rey so I can watch a sermon by John Hagee before I watch City of the Living Dead.

What are those shares worth now Purge?
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« Reply #155 on: January 21, 2016, 10:04:12 AM »

I've been wondering the same thing, SF. The only two channels I need are Daystar and El Rey so I can watch a sermon by John Hagee before I watch City of the Living Dead.

It may be happening

http://money.cnn.com/2015/04/17/media/verizon-fios/
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« Reply #156 on: January 23, 2016, 05:37:23 PM »

What are those shares worth now Purge?

 Just over 100 now.

 And yeah, you wonder why cable providers didn't think of that earlier.
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« Reply #157 on: April 04, 2016, 05:45:19 AM »

On December 31, 2014, in this thread, I advised the purchase of Virgin America.  It has gone up substantially in the last week and is up 40% this morning on news that Alaska Air will purchase it for $2B. Now is the time to put in your stop limit orders and/or sell.  You are most welcome.  Cool


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« Reply #158 on: April 08, 2016, 01:02:24 AM »

On December 31, 2014, in this thread, I advised the purchase of Virgin America.  It has gone up substantially in the last week and is up 40% this morning on news that Alaska Air will purchase it for $2B. Now is the time to put in your stop limit orders and/or sell.  You are most welcome.  Cool

Liberal-to-Conservative shift detected.
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« Reply #159 on: April 15, 2016, 05:37:14 AM »

Buy: Bank of America.  It's currently trading at 13.71


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« Reply #160 on: April 15, 2016, 08:55:28 AM »

Hollywood isn't scared,  movie distributors are    Roll Eyes
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« Reply #161 on: August 04, 2016, 04:01:14 AM »

CHNR up 50% yesterday!  Shocked


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« Reply #162 on: August 05, 2016, 05:06:26 PM »

Liberal-to-Conservative shift detected.

God forbid.
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« Reply #163 on: August 06, 2016, 06:14:38 PM »

The thing with cable is this: If youre not a big tv watcher, why pay for it? I watch a handful of channels on cable: National Geographic (and NG Wild), Discovery Channel, Investigative Discovery, and Animal Planet. So, why am I going to pay a full subscription to watch 5 stations? When I lived in California, I didn't have cable because I barely watch tv. With netfllix ($7.99 per month), Amazon Prime ($99 for the year) and the internet, I got along just fine.

What the cable companies need to do is to allow people to pay based on how many channels they want. And the consumer gets to pick the channels.

For example:

0-5 channels: $9.99 per month
6-10 channels: $12.99 per month
11-15 channels: $16.99 per month

Obviously, the above is just an example.

The greedy pricks do it on purpose. And then they put channels that you may watch in different packages. Where two of the five channels might be in basic cable, then another two in another tier and maybe your last favorite channel in another. They force you to buy all of the channels. I was paying $292 a month for cable internet and phone and finally was like, what the fuck? I backed it down, because with a few kids I don't even watch tv, it was just a convenience thing. I'm not a penny pincher but I hate wasting money. Fuck cable. I'm about to get direct tv or dish.
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« Reply #164 on: August 06, 2016, 09:25:44 PM »

The greedy pricks do it on purpose. And then they put channels that you may watch in different packages. Where two of the five channels might be in basic cable, then another two in another tier and maybe your last favorite channel in another. They force you to buy all of the channels. I was paying $292 a month for cable internet and phone and finally was like, what the fuck? I backed it down, because with a few kids I don't even watch tv, it was just a convenience thing. I'm not a penny pincher but I hate wasting money. Fuck cable. I'm about to get direct tv or dish.

I have cable now and I barely watch it. Its maybe on for like an hour a day, if that. I could afford cable, but why have it if I don't need it. As you said, its just a waste. I get along fine with amazon prime and netflix.
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« Reply #165 on: August 07, 2016, 07:50:25 AM »

I cancelled it a while ago. I'll get it back for the next House of Cards season, but outside of that show, I have no interest in any other original series.
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« Reply #166 on: August 09, 2016, 03:50:39 AM »

I have cable now and I barely watch it. Its maybe on for like an hour a day, if that. I could afford cable, but why have it if I don't need it. As you said, its just a waste. I get along fine with amazon prime and netflix.

Between my digital antenna (which gives me local ABC, CBS, NBC, FOX, and a few others) and Netflix I have more than enough to watch.  I never expect to have cable again. Cool
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« Reply #167 on: August 09, 2016, 07:04:38 AM »

Between my digital antenna (which gives me local ABC, CBS, NBC, FOX, and a few others) and Netflix I have more than enough to watch.  I never expect to have cable again. Cool
no walking dead or mr robot though
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« Reply #168 on: August 17, 2016, 11:21:16 AM »

I decided to sign up for HBO NOW. M

I currently have:

Netflix
HBO NOW
Amazon Prime

Living the getbig dream.  Cool Cool

Might get rid of Amazon Prime though. The movies are subpar.
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« Reply #169 on: August 17, 2016, 01:43:47 PM »

no walking dead or mr robot though

If you enjoy paying cable bills more power to you, but why make posts that are simply inaccurate and make you look foolish?  There are several seasons of Walking Dead (available for streaming) on Netflix.  Roll Eyes


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« Reply #170 on: October 03, 2016, 05:07:54 PM »

There Are 50% Fewer Titles In The Netflix Catalog Than There Were Four Years Ago

http://decider.com/2016/10/03/netflix-giving-viewers-less-movies-shows/?_ga=1.249792197.294517733.1466434787
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« Reply #171 on: October 04, 2016, 03:27:43 AM »

There Are 50% Fewer Titles In The Netflix Catalog Than There Were Four Years Ago

http://decider.com/2016/10/03/netflix-giving-viewers-less-movies-shows/?_ga=1.249792197.294517733.1466434787

That may be true, but the DVD catalog is bigger than ever.  I signed up for Netflix because I wanted DVDs by mail.  I still do.  For me, any streaming content is just icing on the cake. Cool
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« Reply #172 on: October 06, 2016, 06:52:52 AM »

 Smiley


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« Reply #173 on: October 13, 2016, 07:47:18 PM »

Is this why you can never find a movie to watch on Netflix? Streaming firm under fire as study finds it only has 31 movies from IMDB's top 250

http://www.dailymail.co.uk/sciencetech/article-3836921/Is-never-movie-watch-Netflix-Streaming-firm-fire-study-finds-31-movies-IMDB-s-250.html
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« Reply #174 on: October 18, 2016, 06:40:08 AM »

Netflix Jump in New Users Fuels After-Hours Stock Surge
The better-than-expected results boosts stock price, eases concerns about user growth
By Shalini Ramachandran and Maria Armental

Netflix Inc. blew through its forecast for subscriber additions in the September quarter, reassuring investors who were skittish about the streaming giant’s growth trajectory and sending its shares soaring 20% in after-hours trading.

The better-than-expected performance came mainly in international markets, where the company has completed a massive, near-global expansion this year. Netflix is making a big bet that the same mix of edgy original content and library programming that has taken the U.S. media world by storm will translate overseas.

The company added 3.2 million international subscribers in the quarter, compared with its guidance of 2 million.

In the U.S., Netflix added 370,000 subscribers in the period. That is more than 20% ahead of its forecast of 300,000, though sharply below the year-ago quarter’s 880,000 additions, reflecting how the U.S. streaming market is maturing as more consumers sign up for Netflix, Amazon.com, Hulu and other services.

Wall Street’s reaction shows that the company’s global rollout across many territories at once is creating a foggy business outlook—for itself and investors—and leading to a volatile expectations game.

The September quarter’s performance was better than the year-ago quarter’s 2.74 million international subscriber additions, but in the intervening time Netflix has launched in more than 130 countries, elevating its growth potential substantially.

Last quarter, when Netflix missed its internal estimates for subscriber growth, Netflix Chief Executive Reed Hastings apologized on the call to investors for the volatility of Netflix’s stock, which sank 13% after the results. On Monday, as Netflix shares soared, Mr. Hastings smiled and said: “We can all see it’s time for me to apologize for the volatility again.”

Shares surged nearly 20% to $119.35 in after-hours trading. Before that, the stock had fallen 13% this year as the streaming video giant has struggled to keep up with investors’ growth expectations.

“This is a weird year,” said MoffettNathanson analyst Michael Nathanson. “In some ways, we’re being swung around by our inability to forecast what’s a brand new market, which is the rest of the world.”

Despite the subscriber beat this quarter, he said “we’re in the camp that we think international is not all it’s cracked up to be,” due to the uneven nature of internet service and regulatory environment around the world.

Longtime Netflix investor Zevenbergen Capital Investments takes the opposite view. It has taken advantage of recent dips in Netflix’s shares to buy, and says it’s in the stock for the “long term.”

“We realize this is a long process,” said Joe Dennison, Zevenbergen portfolio manager, referring to the global expansion. “If you look at the bigger picture, this is the direction the world is moving and they are really the only global player.”

Netflix’s report of 3.57 million new streaming subscribers globally, which brings its total customer base to about 83 million paid users, comes a quarter after it reported its weakest subscriber expansion in three years. Growing the customer base is crucial for the company to offset its growing content costs, as it seeks to offer evermore shows and movies to appeal to customers all over the world.

In a letter to shareholders, Netflix said the impact of its original show premieres was “greater than anticipated” in international markets, propelling strong subscriber numbers. The company called out “Narcos,” the Latin American drug drama, as a show that had “positive impact” on subscriber acquisition across all of its markets. “We’re having broad success around international,” Mr. Hastings said on a video call with analysts. “We’re continuing to make those investments” but “we’ve got a lot of room to go to improve the service.”

Turning a profit off the global expansion is the next challenge. Netflix said it expects to lose more money from its international operations next quarter as it continues to invest in original content, targeting more than 1,000 hours of original programming next year, a roughly two-thirds increase.

The company expects content spending in 2017 to increase to $6 billion from $5 billion this year, and it plans to take on more debt in the coming weeks.

Best known for dark dramas and comedies such as “House of Cards” and “Orange is the New Black,” Netflix is branching out into different genres including reality shows. On the call, Netflix Chief Content Officer Ted Sarandos said the recent hire of a well-regarded former NBCUniversal executive, Bela Bajaria, was done in part to focus on getting a “good, steady flow of high-quality unscripted programming.”

Overall, for the third quarter, Netflix reported profit of $51.5 million, or 12 cents a share, up from $29.4 million, or 7 cents a share, a year ago. Revenue rose to $2.29 billion from $1.74 billion in the year-ago quarter.

Netflix reiterated that it expects to start delivering material global profit next year.

In the letter to shareholders, Netflix said it is going to explore opportunities to license its shows to other online players in China, a way to build Netflix’s brand. Mr. Hastings recently said “it doesn’t look good” for Netflix’s prospects of entering China as a stand-alone streaming service in the near term.

The video company said the revenue contribution from China licensing will be “modest.” In the long term, it still hopes to “serve the Chinese people directly, and hope to launch our service in China eventually.”

Netflix has also been customizing its user interface in markets such as Poland and Turkey, accepting payments in local currencies and offering local-language options for navigating its apps and for streaming its content. Netflix said it has seen “nice gains” in viewing and retention as a result and is going to expand the initiative in other countries.

In the U.S., there has been a growth slowdown. But Mr. Hastings said he still thinks Netflix can reach 60 million to 90 million subscribers in the U.S., up from 48 million today. He called out the coming royal drama “The Crown,” one of the most expensive shows Netflix has ever made, and said “when you watch that show, it’s going to seem quite achievable.”

Netflix expects to add 5.2 million subscribers in the fourth quarter, compared with the 5.59 million it added in the year-ago quarter. Netflix attributed the expected year-over-year decline in new subscribers to the uptick in service cancellations by consumers who were temporarily locked into lower-priced packages but now face price increases.

That process would be over in the fourth quarter, the company said. Service cancellations have been more pronounced in the U.S., where more than half of its customers had been “grandfathered” at the lower prices.

Mr. Hastings said he’s constantly reminding his employees that even though Netflix is closing in on 100 million world-wide subscribers, Facebook and YouTube have more than a billion daily active users. “We are just so small compared with those other internet video firms,” he said. “I think you have to think big about the future.”
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