Archives For Netflix

Blockbuster’s Downward Spiral

Dave Zatz —  February 25, 2011 — 22 Comments

Online MBA Programs (who?) has compiled a variety of stats into compelling series of graphics that document “How Netflix Destroyed Blockbuster.” While the inverse parallels are dramatic and it’s worth perusing, I remain convinced that Blockbuster is fully responsible for their downward spiral.

Many have pointed to Blockbuster’s missed opportunity of acquiring Netflix on the cheap a decade ago, but the end result would have have likely remained the same given their leadership and vision. And an inability to execute.

Take for example, Blockbuster’s failed forays beyond the brick & mortar. They launched their own mail order DVD service and acquired Movielink for online video. Which saw little uptake and questionable management commitment. Then there was that poor video streaming box that they failed to market (or update) and then quickly buried. Continue Reading…

As we know, the video streaming sites like Hulu and Netflix (now Amazon, too) serve up is quite variable. Titles come, and titles go. Emphasizing the complex (and costly) licensing forces at play. Interestingly, Netflix may harness the power of their community as one factor in determining the content (physical and digital?) they go after. From Communications VP Steve Swasey:

If we have a certain number of Queue adds, we will buy the title.

On one hand, this seems to be a fairly strong indicator of interest. On the other, I’m surely not the only customer who completely bypasses titles that aren’t “in stock.” So consider this a Netflix PSA — load up your queue with the titles you want, not just the video on hand.

Postscript: As we contemplate a reduced role in the Googlesphere, Netflix’s Steve Swasey was the very first industry guy who talked to us on the record way back in 2005. Time flies when you’re having fun. (And good riddance to Sony’s UMD.)

So Amazon’s accidentally leaked all-you-can-eat video streaming has come to pass. And the Hulu, Netflix competitor is free to all Prime members. Well, all full price Prime subscribers. As it looks like those of you on free or discounted subs have been left out. I’m an occasional, but current, Prime member — $79 a year gets me free 2 day shipping and discounted overnight or same-day shipping ($3.99) on physical goods.

So my first thought this AM was, I’m cancelling Netflix! Or Hulu Plus! But it’s not yet clear what sort of quality one can expect from Amazon’s catalog of commercial free video content. Indeed, Engadget took a quick look and wasn’t overly impressed with the picture. Additionally, while Amazon offers over 90,000 pieces of digital video content… only 5,000 are available for “free.” And who knows what determines the selection and rotation.

But I have to say I’m impressed with the wide variety of devices Amazon was able to launch the service with. Continue Reading…

Netflix has been working on a mobile app for Android devices for some time, but hasn’t released anything yet due to the lack of system-wide DRM (digital rights management) on Android phones and tablets. Now the company is showing off Netflix streaming on Android devices using Qualcomm’s next-generation processors.

VentureBeat covers the deal that seems to suggest Qualcomm chips are the first ones that will be fast enough to reliably stream content, but that’s not exactly true. Netflix apps work pretty well on iOS and Windows Phone 7 devices. But Qualcomm is building DRM and security features directly into its next-generation chips which will make it possible for Netflix to stream content without worrying about piracy.

MobileCrunch has a video of the app in action after the break… or rather, in inaction, since the wireless network at Mobile World Congress wasn’t reliable enough to actually stream any video. But you can check out the demo of the user interface. Not surprisingly, the app looks a lot like the Netflix app for the iPhone. Read the rest of this entry »

The folks at Netflix ran a most interesting post yesterday on the company’s technical blog (via ReadWriteWeb). According to the director of engineering, one Netflix device is responsible for roughly 50% of total API calls. The same device, however, isn’t responsible for a comparable level of streaming traffic. In order to cut down on the “chattiness” level, the Netflix team is looking at redesigning the API for greater efficiency. And while the engineers are at it, they figure they’ll play with reducing overall payload (bits delivered) at the same time.

It’s great that Netflix is planning to improve its API, but the story certainly makes me wonder: which Netflix device is causing all that trouble? Is it one that continually drops signal, as some have reported with their TiVo boxes? Or is it one with a more advanced and therefore more demanding UI, like Dave’s favorite, the PS3? Netflix certainly won’t name names, but perhaps somebody else out there has an educated guess. I’d say it’s not the Roku given how long the little-box-that-could has been out, and the fact that API requests started seriously spiking only a few months ago. Anyone else willing to speculate?