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Hollywood film executives fear Netflix may conquer traditional broadcast services the way it did Blockbuster if someone doesn't keep them in check  (Source: theklaus.com)
Film execs think the video-rental company is becoming too big too fast

As Netflix continues to grow in both audience and content, Hollywood film executives are feeling more and more threatened. 

In the past, studio executives have questioned whether Netflix could acquire a large audience without hit films or television shows, which is content they didn't think the video-rental service could afford. But now, Netflix has more than 20 million subscribers and has "sought-after" content available more than 200 internet-based platforms and devices like Xbox 360 and iPad. In the past year alone, the number of subscribers to Netflix has increased 66 percent. The video-rental company has even pushed competitors like Blockbuster and Movie Gallery to file for bankruptcy protection.

Netflix's ability to obtain such popularity so quickly has Hollywood executives scared, mainly because of how it influences the studio's businesses. For instance, Netflix draws sales from other areas such as airlines that offer in-flight internet access. If a person aboard the plane has Netflix, this takes a sale away from the carrier who is trying to sell movies on the plane as well.  

Film executives believe Netflix is having other impacts on the movie industry as well. For instance, movies on Netflix lose value more quickly than those that don't because "Netflix takes scarcity out of the equation" by offering movies to users anytime they want. In addition, film execs say Netflix discourages users from buying new releases. Disc sales are decreasing annually, and 30 to 50 percent of DVD's are still in their original shrink-wrap. While new releases won't appear on Netflix for years, users are okay with waiting until they do. 

According to Eric Garland, CEO of Big Champagne, which is a company that follows digital-media consumption, consumers quit collecting DVD's because it is no longer the new technology of the times.  

"The medium was creating this false impression that we had a real need to curate libraries of films," said Garland. "People built film libraries because they had never been able to own movies before. Even then, most of the movies only got watched once." 

Nevertheless, the film industry made a large profit for years off of movie sales, especially the DVD.  

"If we find out that people won't collect feature films anymore, than the business as we know it is broken beyond repair," said Garland. 

In response to Netflix's overwhelming popularity and its negative impact on the film industry, Hollywood film execs have decided to avoid Netflix completely. They will not "throw in" with the company and jeopardize conventional broadcast services. They feel it is their job to keep Netflix in check before it grows too large to handle. 

This doesn't mean that film execs are at war with Netflix or refuse to distribute films or television shows over the internet. The film industry plans to continue offering this content over the internet for attractive prices, but not through Netflix. 

Studio managers see Netflix as a company that offers the least-valuable material, and that the service will become a swap meet at best that users will become bored with eventually. 



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RE: Don't blame Netflix
By Mitch101 on 3/8/2011 1:03:33 PM , Rating: 1
I blame Michael Bay, Format war, Price, and DRM.

1- I didnt buy the DVD because of the HD versions coming out.

2- It took forever for the hardware to come down to a point where I would accept it and when it finally did (HD-DVD player was about $100-$120.00) and I was ready to jump back in Michael Bay shot his mouth off and the last movie studio sided with BLU-RAY at the time they were $200.00+ Back out of my budget.

3- All I read about was DRM problems with each player. I cant play this movie and they wont update my bios I have to buy a newer BLU-RAY player with the revised BLU-RAY spec.

4- It took BLU-RAY another year to come down in price to a point where I would buy one. But then my kids were at an age were if I bought the BLU-RAY I couldn't play it in the car without spending even more money on hardware.

5- Movies are finally coming down to decent prices in BLU-RAY format but since Ive been off buying them the impulse to buy is gone.

I do own a BLU-RAY player now but its still in the box over 6 months now. Haven't bought a single movie for it. When the time comes and I unbox it and the studios keep messing around I think I will get a group of friends together to start sharing movies we purchase. Otherwise the DVR is serving me fine and my media center offloads shows for when we travel.


RE: Don't blame Netflix
By SSDMaster on 3/8/2011 2:20:29 PM , Rating: 2
@Mitch101

We get it, you're not that into movies.


RE: Don't blame Netflix
By Mitch101 on 3/8/2011 2:54:13 PM , Rating: 2
LOL.
Im into movies I actually go to the theater a lot and only see movies with an IMDB rating of 7+ about things that interests me or defiantly 8+ movies.

I have a 120" projected image in the living room and in my office a 110" projected image and a 65" in my bedroom.

I have a ROKU, HAVA, 2 Media Center PCs, Dual HD Tuner Silicon Dust, 4 dual tuner DVR's, a Popcorn Hour, and another media player I can never remember the name of. I can record 12 TV channels at a time. 4-OTA and 8 through DVR and pipe them to my two Media Center TV's which can wireless sync to my Zune player which I keep in my car or watch my main DVR and anything recorded on my Media centers on my blackberry/Laptop/Nook Color wherever I have a wifi signal.

Direct TV has an option where you can watch any show on one DVR on another that allows me to get the stream to my HAVA and that can stream to my PC or to myself through the web on any of my portable devices. My portable devices have small screens so I can cope with the DVD like quality of the HAVA on them. Anything larger I watch in HD at home.

I can say over the last year all the movies I went to see I really wasn't impressed with and the movies I got psyched about were a real let down. Inception and How to train your dragon would be the only movies I saw last year I would buy. I just saw Rango and thought it was ok I was more impressed with the details of the characters than the movie as a whole. Pixar movies are about the only kids movies that have replay value and they come out about once a year.

I subscribe to HBO when True-Blood is on and Showtime when Dexter is on. Between the two movie channels I record a ton of movies that takes us some time to get through. They overplay those movies and if a movie is worth a second watch I catch it on there.

We do get the occasional redbox every now and then when we miss one in the theater.


RE: Don't blame Netflix
By Gzus666 on 3/8/2011 3:07:13 PM , Rating: 2
I'm confused, you have 10s of thousands of dollars worth of electronics, yet you complain about a few hundred extra for a player to play movies in high def with high quality sound. Honestly it sounds like you are just complaining about a new video format and you are bitter over HD-DVD losing. It is over, please just let it go.

Also, you rely on IMDB to provide ratings for movies you watch? Awesome, no wonder really good movies fade out into the darkness. Half the movies I end up watching based on random suggestions from Netflix are so obscure, they aren't formally reviewed, but I have been delighted by what I have found. I don't get the Inception reference, I thought that movie was pretty marginal at best. Maybe if you swayed away from Hollywood a bit, you would find some real gems. I have to put up with subtitles at times, but it has been well worth it.


RE: Don't blame Netflix
By Mitch101 on 3/8/2011 3:48:00 PM , Rating: 2
Didn't purchase everything at once did it over time and it wasn't just $200.00 for the player but the movies were $17-$24.00 when the DVD was $8-$12. Its one of those technologies you wait and the players become $30.00 and the movies on special for $6.00 - $8.00. Ive seen some movies in their HD version and they aren't much better in HD from their DVD so a lot of movies I wont be rebuying for the HD versions and how many a year later will be remastered in HD. So you have the initial HD release and then a year later they pull the digitally remastered HD re-release.

HD DVR's are FREE from Direct TV just renegotiate every year and replace one receiver every year in the process.

Projector Epson HC-8100 $1250.00 0% finance over 12 months.
Second Projector I made for about $400.00 720P
65" HDTV that I paid a lot for a long time ago its 8 years old?

For the projectors I use a painted wall $50.00 google for black widow screen paint you mix it. On par with very expensive screens.

$100.00 Silicon Dust HD Tuner
$100.00 Roku - I wanted the top end. I figure this will be cheaper than Direct TV's sports packages like MLB the savings will make the Roku a free device compared to direct tv.
$80.00 Actually Chinese knockoff flashed with popcorn hour bios.
$60.00 other media streamer. Argosy just added an older hard drive.
$80.00 Hava from monsoon multimedia they always have a special.

My Stereo is 5.1 audio sounds great with JBL speakers I use the optical inputs.

I would say in the last 3 years Ive invested $1,800 in equipment or $50.00 a month. A bulb should last me 3 more years before I need to upgrade anything soon.


RE: Don't blame Netflix
By Gzus666 on 3/8/2011 4:23:22 PM , Rating: 1
I guess this begs the question then from the obvious desire to save money, why not just get Netflix with Bluray so you can get all the movies you want?


RE: Don't blame Netflix
By SSDMaster on 3/8/2011 3:08:20 PM , Rating: 2
Wow. With all that equipment I can't believe a $200 blue-ray player was out of your budget. It seems like you've spent quite a bit more $$$ on your current setup.

But you're obviously into movies...


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