Digital Home Thoughts - News & Reviews for the Digital Home

"After dominating the home video rental business for more than a decade and struggling to survive in recent years against upstarts Netflix and Redbox, Blockbuster Inc. is preparing to file for bankruptcy next month, according to people who have been briefed on the matter."

The writing has been on the wall for this one for a while now. I'm sure Blockbuster will be a case study in business textbooks in the future as a lesson to never be too comfortable as market king. They unfortunately used their leadership position to abuse their customers and were far to reactionary to major changes in the market. Redbox and Netflix have just torn them apart.

You can head on over to Lifehacker for the full chart. Things even out between Hulu Plus and Netflix as you progress through the alphabet, but I think Netflix is the clear winner since it is cheaper per month and you get one DVD by mail at a time as part of the same plan. Plus, Netflix is available on more devices, so you've got a better chance of streaming those shows to your TV easily.

"HBO has plans to launch a streaming service of thier own called HBO Go in the next six months. A Netflix spokesperson expressed their desire to work with HBO saying, "Compete with us or collaborate with us, but we would much rather work with them.” It seems HBO feels they can adequately compete with Netflix, having already secured content deals for their online service with Comcast and Verizon."

Gutsy, sure. Smart, not so much. I see HBO's point that their content is viewed as being exclusive, so putting it on Netflix makes it seem less such, but exclusive also means limiting your market. Netflix has tons of content, so tons of eyeballs. Plus Netflix is widely available on devices that easily hook up to consumers televisions and will be making the push to mobile devices. At best, I think any independent offering from HBO will remain a niche product at best.

"Netflix, Inc. (Nasdaq: NFLX), the leading Internet movie subscription service, today announced it will expand into Canada this fall offering unlimited movies and TV episodes streamed instantly to TVs and computers for one low monthly fee. The Canadian launch will mark the first availability of Netflix outside the United States. Canadian Netflix members will be able to instantly watch a broad array of movies and TV episodes right on their TVs via a range of consumer electronics devices capable of streaming from Netflix, as well as watching on PCs and Macs. In addition to representing its inaugural international market, Canada will also mark the first streaming-only service promoted by Netflix."

Interesting! As one of two resident Canucks on the Digital Home Thoughts team, I'm quite excited by this - unlike all of our American readers to the south, in Canada we have virtually no streaming media services of any sort. Hulu? Nope. Zune, except via Xbox 360? Nope. Amazon video on demand? Nope. iTunes is one of the only options we have in Canada for purchasing video content. We desperately need some competition here to shake things up, and Netflix coming to Canada is just about the best thing I could have hoped for in this area. Bring it on! Interested Canadians can sign up at the Netflix.ca site for further info.

"Basically, I spend a sizable chunk of money per month to access content and have a lot of screens on which I can consume it. If there is a person in the world who should be able to access the show through legal means it's me. Things are never that easy -- here is how my quest for Jack Donaghy inspiration unfolded:"

Big Media, as Keith Richman calls it, is still in the process of figuring online distribution out. How can that be? We have had technology to do this for years! If one reads his journey through frustration, you should be able to note that he tries to make use of several different technologies, all of which are capable of providing him with Fey and company. It also seems odd that his claim to having multiple different technologies is supposed to make his entertainment easier, where I find a mixed bag as much more difficult to manage. Still, the challenge with Big Media is that it is not one entity, but a lot of entities, all wanting some form of money or control for their contribution. Look at how long it is taking for WKRP in Cincinnati to come out on DVD in its entirety. A shakedown is in order, and there will eventually be a consolidation of media distribution channels, along with its own set of problems, and hopefully then, we will find getting what we want a bit easier.

There is nothing wrong with the current Roku interface, but with all the gaming consoles now offering Netflix it was time for them to bring a bit more to the game. So check out the above video if you've got a Roku box to see what you can look forward to in the coming months. As an added bonus, they also got a sneak peak of their UFC channel.

"A Netflix representative confirmed that Netflix is now streaming more than half of all HD titles to PCs and Macs in HD. To tell if a HD streaming title is available for HD streaming on a PC, mouse over the title and look for the words "HD available" in the Format section."

If you stream from Netflix directly to your PC or to a HTPC hooked up to your TV, this is great news for you. With so many other devices supporting Netflix, I only use it on a computer when I'm on the road, so I'm not sure I'll get much benefit from HD, now if they'd get around to developing an Android client, I'd be stoked.

"I heard about Blockbuster getting an exclusivity deal with Warner Bros. to rent their new movie titles 28 days before any competitor is able to, but I didn’t realize that it was immediate and would affect all forms of delivery and sales (see press release below). As you can see in the image above, The Blind Side through Blockbuster is available in-store, by mail, and on-demand. Netflix and redbox… no dice."

This is just life support for Blockbuster. It is in Warner Bros. best interested to keep them around, but I'm betting they know Blockbuster is all but dead and just didn't want to even waste their time negotiating for the delayed rental window. Like a lot of other Netflix users, I have tons in my queue, I don't go to the theater anyway, so waiting an extra month is not a big deal. I used to be a fan of Blockbuster, but they were dedicated in their intent to drive me away and were finally successful a few years ago.

"Owners of the Nintendo Wii can finally stop waving their video game controllers in the air and sink back onto the couch. Nintendo is bringing Netflix’s online streaming video service to its Wii gaming console, the most popular in the industry, the companies plan to announce Wednesday. The service lets subscribers choose from a catalog of generally older movies and television shows and watch them instantly."

I can't imagine Microsoft is pleased. From everything I've read, they had an exclusive agreement with Netflix for streaming software on the console. Apparently, there was a loophole as long as the software ran from disk. So now the PS3 and Wii are going to be giving away for free a feature that Microsoft charges for. I've had a Roku box for well over a year and we moved it to our bedroom after we got the PS3 software. I'll probably get the Wii disk for grins, but since it is hooked up to the same TV as my PS3, there is not much point since the PS3 has HD.

"Marking the first step in what could be a major change in Hollywood's relationship with Netflix Inc., Warner Bros. has struck a deal with the fast-growing online DVD subscription service that will prevent it from offering new releases until 28 days after they go on sale. The studio is hoping that the four-week "window" will push consumers interested in watching movies at home to purchase the DVD. Warner already imposes an identical window on $1-per-night kiosk company Redbox and its competitors. Although its unilateral move against Redbox has led to a court battle, Netflix agreed to the 28-day window in exchange for improved financial terms, higher inventory levels and increased access to content for its online streaming service."

I'm really kind of disappointed that Netflix caved in to the studios on this one. I completely understand why the studios wanted this, I purchase far fewer DVD's since I got Netflix than I did years ago. But, I'm willing to wait for movies to come out on DVD rather than watching them in the theater, so I'm willing to wait another month. I'm hoping the increased access to online streaming content is worth the trade.

"The Roku SD player connects to the TV using the included and familiar Yellow-Red-White video/audio cable. In addition, the Roku SD player incorporates Wi-Fi (802.11 b/g) and an Ethernet port for easy broadband connectivity. With the Roku SD player, customers can stream their favorite movies and TV shows to their TV at up to DVD quality. The Roku HD and HD-XR players feature High Definition streaming capability, connecting directly to any TV using HDMI or Component video (both products also include S-video or Composite video outputs as well). The Roku HD-XR adds the latest Wi-Fi standard, 802.11n dual-band, giving customers who have adopted this router technology improved connectivity range and better overall wireless performance between the Roku HD-XR and the home network. The Roku HD-XR also works with legacy routers and can often boost Wi-Fi range inside the house. Finally, the Roku HD-XR includes a USB port for future use."

Being Canadian, I can't use Netflix - but there are days I sure wish I could. These Roku players look like a great way to access Netflix and Amazon video content. They're small, inexpensive, quiet, and simple to operate - four key factors in TV-room adoption.

"Time Warner and Comcast have joined hands in order to regain control on some of the content that is slipping right out from under 'em. In the olden days, the only portal for catching content was the 'tube; today, a vast array of television shows are available gratis on the web, and that's downright frightening for pay-TV operators. Today, both firms are detailing TV Everywhere in the most general way possible, only telling us that paying Comcast subscribers will soon have access to "premium long-form content" via a web portal. TNT and TBS are the only networks specifically named thus far, but considering that both of those already offer their best programming online to everyone, we're not terribly impressed."

I'm thinking cable networks are going to start getting desperate. Hulu, Netflix, and DTV offer a much cheaper alternative than even basic cable. Unfortunately, giving subscribers what they can already get for free elsewhere will probably do little to help solve this problem.

"Less than six months after Netflix imposed a $1 surcharge for Blu-ray lovers, the company has decided to jack up its rates once again. In an e-mail sent to subscribers today, Netflix said that it would be raising its Blu-ray access charge to as much as $9 per month on top of a normal subscription rate. The changes will go into effect on customers' billing statements on or after April 27, 2009 unless they remove the option from their accounts."

I have not received my e-mail yet, but I'm not particularly pleased by this. On my plan, this amounts to a 4x increase in the Blu-ray surcharge. Given that less than 25% of the movies in my queue are even available on Blu-ray, I just can't justify the extra cost and will be cutting the Blu-ray option from my account. Regardless of whether you think the cost is justified, I think this is a marketing blunder. By setting the surcharge at $1 last year, they set an expectation as to what the pricing structure should be and making such a massive change so quickly is bound to peeve off some users.

"This news may not be a surprise, given the huge success of Netflix's Watch Instantly streaming service, which had been activated over 1 million times on Xbox Live the last time we checked -- accounting for about 10 percent of its subscriptions. Regardless, word has come from Netflix's CFO Barry McCarthy that the company plans to offer a streaming-only service 'in the near future.'"

No price as of yet, but I'll bet on $4.99 or less given that for $8.99 you can get 1 disk at a time with unlimited exchanges and unlimited streaming.

Product Category: Digital Video Player

Manufacturer: Roku

Where to Buy: Directly from Roku

Price: $99

System Requirements: Netflix account, Wired or Wireless Internet Access, TV

Pros:

• Inexpensive;
• Wireless built in;
• Small and silent.

Cons:

• Might be redundant if you already have an Xbox;
• No power button;
• Stereo Only.

Summary: If you have Netflix, you've got access to their "Watch Instantly" feature, giving you instant access to over 12,000 movies and TV shows via the web. To get the most out of this service, you really want to be able to watch these on more than just you computer. Netflix has made this feature available via a number of platforms, including Tivo, a Samsung Blu-ray player, the Xbox 360, and The Netflix Player by Roku (the subject of this review). After the break, my thoughts on Roku's diminutive offering. Read more...

"We knew Amazon Video on Demand was headed to Roku’s media streamer ($99) early this year. And now, via their forums, we have word that the service has entered private beta. I had hoped Amazon VOD functionality was hidden within the recent 1.5 software update, however it’s rolled into a more significant 2.0 upgrade."

Roku is going to need to change the name of The Netflix Box to better reflect this added functionality. They are basically taking what was an outstanding one-trick pony (watch for my review to be posted shortly) and giving it an entire repertoire of content. I have not had reason to try Amazon's video service yet, but this might be just the reason.

"Doubts have been cast on the success of the Blu-ray format ever since it debuted. Initially, the format appeared to be doomed due to a poor adoption rate, thanks mainly to a host of factors, including the PS3's initial tribulations, popularity of the DVD format, and the steady rise in the popularity of digital downloads."

Blu-ray won the format battle against HD-DVD, but it has yet to win the war for HD-content delivery. The opposition? Digital downloads, for one. Personally, I'm a fan. VUDU's HDX rentals are extremely high quality and their full HD library is the largest anywhere. Other competitors include Apple TV/iTunes, Amazon/TiVo, and Netflix; each with varying pros and cons.

The other opposition? Interestingly enough, standard-def DVD. While it's not true HD content, the output of an upconverting player provides a very satisfying experience, particularly if the movie is good. And consider that many people can't tell the difference between SD and HD on their HDTVs. Basically DVD quality is, in many instances, good enough. While the DVD to Blu-ray quality difference is significant, it's not as big of a leap as VHS to DVD. I remember VHS video artifacts & that interfered with my enjoyment of a movie. Very rarely have seen a DVD issue that is a limitation of the media.

What do you think?

Sometime around 3am I received an email from Netflix informing me of and apologizing for a problem in their DVD shipping system. Apparently something is going on that is preventing them from emailing some users when DVDs are received and empty slots in the queue aren't being filled. I knew they should have received a DVD of mine a Tuesday or Wednesday and didn't recall seeing an email on it, but I hadn't given it much thought. Could have been misrouted in the mail or just delayed, right? Instead of waiting for customers to start wondering what is going on, Netflix has proactively contacted the affected customers notifying them of the problem and promising a credit for the days during the outage once it is over.

Now that is top notch customer service. Am I getting DVDs? No, and the timing isn't great either as the weekend looms near, but you know what? Stuff happens. I've been with Netflix since 1999 and this is the first service outage I recall having, and when they have it, they don't bury their heads in the sand and try to fix it on the cheap, keeping customers in the dark. They are very up front with the issue and will take the financial hit. I could care less about a 2-3 day refund. That won't even buy me a Tea Misto at Starbucks, but that isn't the point at all. Their annual revenue for fiscal 2007 was roughly $1.2 billion dollars, so if everyone is affected, this could be as much as $3.2 million per day they are refunding. I doubt it is that high as they have other revenue sources besides rentals, and I don't think 100% of their customer base is affected, but you get my point - this is not chump change to them.

So kudos to Netflix for doing customer service right. And get it fixed by tomorrow so I have some DVDs by Saturday. ;-)

"Netflix subscribers, if you've got an Xbox 360 and a Windows Vista PC, you don't have to shell out $99 for Roku's Netflix Player box to get your Watch Instantly library on your TV screen—you already have everything you need. Using the free Windows Media Center plug-in, vmcNetflix, you can turn your Xbox 360 into a Netflix Watch Instantly box. Here's how."



So a couple weeks ago we posted a link to a review of the $100 Roku Netflix Player, but this week we bring you a way to stream Netflix movies for free on your Xbox 360+Windows Vista PC! Lifehacker has posted detailed instructions for setting up the vmcNetFlix plugin on Vista and how to get going in a few minutes. Keep in mind this is beta software, so it may be a little buggy, plus there's a very good chance it violates the Netflix terms of use (since it downloads the video to your PC), but if you're feeling like a daredevil, willing to take a risk, try it out and let us know how it works!

"If you're a Netflix subscriber you may have noticed that in the last year or so the company has rolled out a Watch Now option that lets you instantly watch some of the movies and TV shows in the Netflix library on your Windows PC with a broadband connection. More recently, in upgrading its digital offerings, Netflix has taken things a step further by separating out the Instant Queue from your DVD Queue. While the all-you-can-eat streaming video option is a nice perk for users (it's available to any subscriber on the $8.95 per month plan or better), the real dream for many people is that instead of watching movies on your PC's monitor, you cut out the computer completely and go right to your TV. Well, with the Netflix Player by Roku ($100) that has become a reality."



CNET reviews the NetFlix Player (made by Roku) and gives it a solid 7.7. This little box connects to your TV and the net (via wired or WiFi) and allows you to play your Netflix "Watch Now" streaming content directly on your TV (without having your PC turned on). It only streams video at 480i, but is capable of higher resolutions, although, for now available bandwidth is a limiting factor here. One cool thing is you can start a movie on your PC, then automagically resume the same movie from the same spot on your Netflix Player on your TV. One thing I didn't like is that you can't add new "Watch Now" content to the queue directly from the player, you have to do this from your PC. I guess this isn't too bad as long as you fill up your queue beforehand. What do you Netflix users out there think about this thing? How about non-Netflix users, would this be a reason to make a jump to their service?