Netflix Is Back?

OK they may be still playing juggle-the-rights, but Netflix did pretty well for Q4 (beating expectations), and numbers suggest they might be over that hump of sort of annoying everyone.

They're also abandoning their video game rental plans, which makes total sense.

Frankly this is a bit better than I expected, but as a Netflix booster who got disappointed in some of their activities, I'm not sure I can say "they're back," even though I love the service.  It's a positive sign definitely – and it looks like they're aware that Amazon is coming for them.

Oh, and again, where's OnLive in all of this . . .

Steven Savage

Steve’s Kill Your Cable Adventure #5: Finding The Off Switch

Been awhile since I posted one of these columns, though at least you know I haven't been busy watching cable.

Essentially in the month since the last column, no one in my home has watched cable.  In fact, only recently did we go "hey, wait, we should cancel this."

The shift happened that quickly.

So now this week I've got to go get rid of Cable and TiVO.  Both have their own challenges, but it's also going to mean about $80 or so we don't spend a month.  So, yeah, if you've got a deluxe cable package, you're spending more, and that adds up.

Getting away from cable, after a short time, was pretty easy:

  • Hulu and Netflix of course made it easier to get old and new shows.
  • Some companies put their shows online anyway (though I expect there's some odd battles coming).
  • There are companies that put specific content online, such as anime.
  • If you really want it, get the DVD from Netflix, or buy one, or buy one and sell it to a  used media store. 

So pretty much if I want television of some kind, I can probably get it.  In other words, yes, you don't need cable.  Also you probably have Netflix anyway.

I also noticed definite psychological shifts:

  • We all know a lot of television is crap.  When you're not watching it, the crap becomes more, painfully, apparent.
  • Having cable is like having a ticket to a buffer of mediocrity.  You'll use it because it's there, but in actuality, you're not getting much out of it.
  • Having to decide on my entertainment and video viewing as opposed to flipping on the TV has gotten me exploring a wider variety of content.  Cable, in some ways, is also limiting.
  • My interest in different media extended to other areas of my life – such as webcomics.
  • I feel even more social.  Television doesn't become a tool of socialization so much as a tool for shared experiences.

The shift in mindset is still something I'm analyzing, and there will doubtlessly be more analysis to come.  In the end I came to the following conclusions:

  • You probably don't need cable and it might be good to get away from it.
  • It's easy to get away from it.
  • Cable companies are going to need to change radically to deal with the changes in the world – and I think they could, but I'm not sure they will (essentially becoming "internet providers plus").  Hint – potential career opportunity.

So probably one more column to come on how I turned it all off . . . then silence.

Followed by me watching Netflix.

Steven Savage

 

Netflix Expands Into the UK and Ireland – and More

Netflix streaming-only service in the UK and Irelandcheaper introductory streaming package that also has extra features. They're also not the only potential competitor.

Netflix both has to do this – and faces the hard truth that they'll loose money in 2012. They are trying to raise more capital, but also have to keep making changes to stay valid and head off competitors.

More insight is provided by Reed Hastings, who among other insights states pretty obviously his goal is to expand overseas.

Let's face it – Netflix is the default. It's even a good default, but the default nonetheless – and some bad choices (like Qikster) and a changing market have shown they're not as stable as people may think – including me.

But what happens with Netflix is going to have a lot of impact. Following Netflix is important because:

  • They (or those who replace them) will affect video distribution. I've been concerned what Big Streaming means for the little guy who does video. Maybe competition means the little guy gets a break – and consolidation means he gets crushed.
  • Amazon keeps expanding – and this is one area they're not dominant in. A failure of Netflix could mean a surge for Amazon – and the inevitable confrontation with Amazon as a kind of mega-power of business (think Wal-Mart but without people hating them as much). On the other hand, Netflix could be a bulwark against Amazon . . . and one people may eventually support financially and politically because of that only.
  • Netflix is seen as vulnerable, so people are moving into their territory – but to think they're all going to succeed is ignorant. Some bright new startups and competitors are doubtlessly going to fail – so pay attention if you work in those areas.
  • Career-wise, I think Netflix is still a safe bet for the next year or two. Then it'll be more solidified – or further in trouble. My big worry would be sudden reorganization.
  • Netflix currently does not employ local staff in it's UK and Ireland outreaches – but I'm sure that will change (and change in other countries). Might be an opportunity there.

This? One step in a much more complex game.

Steven Savage