The two companies put out a press release without a whole lot of detail (below) but are holding a press conference shortly where we may be able to tease some more out of them. (Update: Well, that was a waste of 10 minutes. Verizon is also promising to make executives available for interviews this morning, but my expectations are now very, very, very low. Subterranean.)

Right now, all they’re really saying is that they’ll have video content, delivered over the Web and via mobile devices, and that consumers will be able to stream some of it and download some of it.

Roping Redbox into the JV — Verizon will own 65 percent of the company, and the movie rental service will have the remainder — makes sense, because it will give the unnamed service a digital-plus-physical option. Just like Netflix and Dish Network’s Blockbuster already have.

But while the big media companies are very happy to license some of their content to Verizon or any other player that wants to pay for digital rights, they are much less comfortable with Coinstar’s Redbox, and have tangled with that service in court.

Right now, for instance, Redbox has announced that it won’t work with Warner Bros.’ new 56-day “window” for new movies on DVD, and will buy discs from third-party sources instead of getting them directly from the studio. So it will be interesting to see how Warner Bros. and parent company Time Warner treat the new venture, and whether that dynamic plays out with other content guys.

VERIZON AND COINSTAR’S REDBOX FORM JOINT VENTURE TO CREATE NEW CONSUMER CHOICE FOR VIDEO ENTERTAINMENT
Joint Venture Will Offer the Best of Both Worlds – Physical and Digital – to All Consumers Nationwide

NEW YORK – Verizon and Coinstar, Inc. today announced the formation of a joint venture that will create a new choice for quality- and value-conscious consumers seeking a simple and affordable way to access the video entertainment they crave. The venture’s services will offer all of the convenience, simplicity and value of Redbox® new release DVD and Blu-ray Disc® rentals combined with a new content-rich video on-demand streaming and download service from Verizon.

The joint venture plans to introduce the product portfolio in the second half of 2012. It will offer subscription services and more in an easy-to-use, flexible and affordable service that will allow all consumers across the U.S. to enjoy the new and popular entertainment they want, whenever they choose, using the media and devices they prefer. Additional brand and product information will be revealed in the coming months.

“When you consider the core elements the parties bring to this venture – our powerful brands; our national rental kiosk footprint; our anytime, anywhere network presence; and our mutual commitment to customer-focused innovation – it’s clear that Verizon and Redbox are a powerful entertainment team,” said Bob Mudge, president of Verizon consumer and mass business markets.

“Consumers rely on Redbox for the latest new release movies at a great value, and our joint venture with Verizon will enable us to bring them even more value by offering expanded content offerings and greater flexibility for how and when they enjoy entertainment,” said Paul Davis, chief executive officer of Coinstar, Inc. “This alliance is the result of a deliberate and strategic process to identify a partner who shares our commitment to delivering innovative solutions to consumers. We look forward to rolling out the shared benefits this venture will bring to consumers, retailers, and shareholders.”

This venture between Verizon and Redbox will create the kind of national multi-platform product that customers are demanding from video entertainment service providers. It will leverage Verizon’s industry-wide relationships with entertainment content providers, its advanced cloud computing technologies and state-of-the-art IP network infrastructure to distribute video on-demand content to its customers.

“The joint venture will combine the accessibility and value of Redbox with Verizon’s vision for a borderless lifestyle – where consumers easily accomplish what they want or need to do, on their terms, through the power of the network,” said Mudge. “Together, we are erasing old technology boundaries, freeing people to spontaneously enjoy the entertainment they want, whenever they choose, using the devices and media they prefer, at home or away.”

By offering instantly available online and mobile content with immediate access to physical media through rental kiosks, Verizon and Redbox will be uniquely positioned to deliver the best of both worlds – digital and physical – to consumers across the country.
The joint venture is a limited liability company with Verizon holding a 65 percent ownership share and Redbox holding a 35 percent ownership share at the outset.

Let’s be clear on the much-awaited Asian deal that Yahoo and its Asian partners have been working on: While it is certainly still moving forward, once signed, it will not actually officially close until next year.

Yes, that’s right — 2013!

Still, what everyone and his investor is waiting for is the splashy announcement of the agreement, which involves the Silicon Valley Internet giant, China’s Alibaba Group and SoftBank, a large shareholder in Yahoo Japan.

Yahoo leadership has been hoping that could happen before Feb. 24, an important date after which activist shareholder Daniel Loeb could begin to mount a proxy fight against the current board.

And while the definitive agreement — involving the sale of Yahoo’s 33 percent stake in Alibaba and 35 percent stake in Yahoo Japan — has been moving back and forth among the dealmakers, one source said its completion might take a little longer than that, perhaps even into mid-March.

“It is one of the most complicated cross-border transactions in a long time,” said one person close to the situation. “It’s three different languages, three time zones and three companies that have not always seen eye to eye.”

It’s not that the companies don’t have the top talent on the effort. For Yahoo, it is CFO Tim Morse (who most recently also warmed the CEO seat, until Scott Thompson’s recent appointment); for Alibaba, it’s CEO Jack Ma and CFO Joe Tsai; and, for SoftBank, it is top man Masa Son and his top man Ron Fisher.

To make things even more complex, at the same time as the negotiating is going on, the trio also has to pay mind to how the Internal Revenue Service in the U.S. is going to view the whole deal.

As you can see here from a Wall Street Journal chart, it’s a pretty complicated “cash-rich split-off” to avoid taxes.

While the IRS cannot take an application for a “private letter ruling” until it has an actual agreement in hand, and will not issue one on a hypothetical transaction, the agreement still must be crafted so it is most likely to pass muster.

And only then can anyone move on to the many billions of dollars that Yahoo will instruct Alibaba and SoftBank to pay or contribute in kind for the asset part of the arrangement.

As the Journal noted, in more clarity than I ever could: “A key part of satisfying tax-code requirements is that the company shedding its shares get assets, not just cash, in exchange for them. Cash can’t account for more than two-thirds of the transferred value, tax rules say. This restriction was adopted in 2005 to limit misuse of the provision.”

While Yahoo’s execs have met about the various possibilities, it is more considering now than anything else.

And although a lot of names have been bandied about — Weather Channel, WebMD, as well as Glam Media and even Digg — the more likely direction Yahoo will go in will be different, according to many sources.

First, said sources, the key criteria for the purchase will be to diversify revenue streams, a theme Thompson sounded in his first earnings report recently. That could mean more online commerce, perhaps, rather than advertising or media assets.

Second, said sources, international properties might be more valuable to Yahoo than owning more U.S.-based ones, which opens up a range of interesting possibilities.

This could even include some already held by Alibaba, for example, such as garnering a big stake in its publicly-traded Alibaba.com. Technically, via Alibaba, Yahoo already owns some of the e-commerce giant, but not directly. Another possibility is to get back the Yahoo China business, also now owned by Alibaba.

Third, U.S. companies that Yahoo might look at could be unusual and even bold. Two names brought up in recent internal meetings, for example, were Netflix (before its stock revived) and Yelp (which is prepping for an IPO, and which Yahoo once tried to buy already).

And if things were not already needlessly complex in fixing its Asia problem, expect a change in the Yahoo board composition, too, as early as this week.

As I previously reported, at least four directors are expected to move on. More to the point, there will also be replacements announced at the same time.

To stave off Loeb and even give him a perceptible win, sources said the company is considering announcing the changes sooner than later, with the hope that fresh new members will placate other shareholders.

Lastly, with Thompson starting to take the reins after a month there, I would also expect he’ll weigh in on some significant restructuring (his word, not mine!) at Yahoo soon enough, too.

Complicated? Sure is! Perplexing even? And how! But until Asian and board resolutions, the real work of fixing Yahoo can’t really begin.

Asked about last year’s failed Hulu sales effort and expectations he would move on, Kilar said he sees “many winners” among Hulu and competitors like YouTube, Netflix, Amazon and Apple. “Online video and online video advertising are enormous,” he said.

Last year’s aborted sales effort, Kilar said, was “far more public than I would have liked. I’m a private guy.” Is he surprised he’s still at Hulu? “I’m not.”

Will he be leaving Hulu any time soon? Kilar urged watchers to look at his history, which includes two employers — Amazon and Hulu — since graduating school. “I’m not the kind of guy who dabbles in a lot of things,” he said. “Just judge me on my history, and the team on the history.”

As for the economics of Hulu, Kilar noted (as he has before) that the company made $420 million last year, which was 60 percent more than 2010, but less than the company had expected after a “soft” third quarter.

Hulu Plus, which Kilar described as being in “investment mode,” pays content owners more per user per month than any of its competitors, Kilar said. “The dollars going back to content owners on Hulu Plus are extremely generous.”

Kilar downplayed content negotiations with News Corp., NBC and Disney, the large media companies who own significant parts of Hulu. “Keep in mind we have 330 content partners, three of which we have an equity relationship with,” he said. (News Corp. also owns this Web site.)

The Mountain View, Calif.-based company tries to boost online companies’ revenue by placing targeted promotions and offering incentives at the point of checkout.

It’s a bit similar to how grocery stores try to boost sales by strategically placing tabloid magazines, gum and candy bars at the register to spur last-minute impulse buys.

Instead, TrialPay makes last-minute offers to give people incentive to make a purchase when they are on the fence.

As an example, TrialPay’s CEO Alex Rampell said that when people visit Fandango’s site, they may get an offer for a free movie ticket if they sign up for Netflix. Or, in a Zynga game, you might be offered a virtual bouquet for free, in return for purchasing real flowers on Valentine’s Day.

Visa’s participation in the investment, which is being announced later this morning, is rare. Over the years, the payments company has made a few acquisitions, including PlaySpan, CyberSource and Fundamo, but Visa’s only investment in recent memory was in payments darling Square, which allows anyone to accept payments using a cellphone.

Rampell said that with Visa’s help, TrialPay will be able to expand to offline merchants from working exclusively with online retailers, by giving it a way to track if a person visited a store and made a purchase.

“The question is, how do we send traffic to Starbucks or McDonald’s or any other offline merchant?” Rampell said. “We already have access to people online who are buying or thinking about buying something. It would be great if we could could give you 20 virtual coins if you shopped at McDonald’s. But how do we close that redemption loop?”

Today, TrialPay, which has 130 employees, reaches more than 70 million monthly active users worldwide. In 2011, Rampell said, revenues more than doubled; he declined to offer specifics.

Rampell also declined to provide details about potential partnerships with Visa. Visa also declined to comment.

Investors in the company’s fourth round included new investors Greylock Partners, Visa Inc., T. Rowe Price, DAG Ventures, DFJ Growth and QuestMark Partners. Existing investors also participated. To date, it has raised roughly $70 million.

For more of Rampell’s opinions on how the payments space will evolve, check out his Web 2.0 speech from October:

That’s where SnagFilms comes in. The start-up has distribution rights to more than 3,000 indie movies, which it shoots out to platforms like Netflix and Hulu. The four-year-old company is best known for the documentaries it puts out, like “Casino Jack,” the story of the disgraced political fundraiser Jack Abramoff; others include “Super Size Me” and “Enron: The Smartest Guys in the Room.”

Now SnagFilms has raised another $7 million, following up a $10 million round from a year ago. Earlier investors like Ted Leonsis, New Enterprise Associates and Comcast have re-upped; new investors include Terry Semel, the former Warner Bros. studio and Yahoo boss.

SnagFilms started out by asking bloggers and other Web site operators to embed its films on their sites for free. It made money by selling ads against the films and sharing revenue with the movie owners.

It still does that, but it has expanded to offer free movies on other platforms, like the iPad and Android tablets. It has also started making its movies available on pay-per-view outlets like Apple, Amazon and Comcast’s video-on-demand channels. CEO Rick Allen says that by the end of the year, revenue from transactions will eclipse the company’s ad dollars.

The interesting question for SnagFilms — and a whole lot of digital video companies right now — is whether there’s a way to get consumers to identify and value what distributors do. If they do, then these guys can build lots of value, as consumers learn to trust them as a good source for small, quirky films the big guys missed.

(Image courtesy of Shutterstock/James Steidl)

To recap: Lots of people you know, and lots of people who read sites like this one, think people are already ditching cable TV for some combination of iTunes/Netflix/Hulu and/or pirate sites, etc. But cable providers and cable networks say they don’t see any signs of it.

So onward to today’s numbers from Time Warner Cable, which show the second-biggest cable company in the U.S. losing 129,000 video subscribers — about 1 percent of the 11.9 million base.

If you’re in the “it is totally for real” camp, you can jump on this as proof of your thesis, and that’s what this Business Insider post* does, Grim Reaper art and all.

But in order to get really worked up about Time Warner’s losses, you’d have to ignore contrary data points from other video services that show a boost.

For instance, AT&T and Verizon each added about 200,000 subscribers to their pay-TV offerings in the last quarter. Presumably, many of those 400,000 subscribers were already paying for TV from another provider, so those losses have to show up somewhere.

Time Warner Cable notes that AT&T’s service is available in about 25 percent of Time Warner’s footprint, while Verizon, which it says was “aggressive” about marketing last quarter, is available in about 12 percent of Time Warner’s market.

In any case, until we get numbers from all of the pay TV providers, it’s hard to make any calls about cutting/adding in the last quarter. Comcast, the industry’s biggest provider, won’t report until February 15.

And once we do have all of this quarter’s data, we’re still just going to have this quarter’s data. As we’ve seen over the last year or so, sometimes pay TV user numbers go up, and sometimes they go down. We’ve yet to see a clear trend one way or another.

None of this will soothe some of you folks, who will tell me that you, or your friends, or someone you know has cut the cord and is loving life. That doesn’t mean that’s not the case — just that statistically, it has yet to register.

Earlier this month I tried to make an analogy between cord-cutters and vegans, but I’m not sure I hit the mark. So this time we’ll let Time Warner Cable CEO Glenn Britt make a similar argument, in his own words, via Seeking Alpha:

I think there are — remember, the average TV in America is on for some very large number of hours a day, with 6, 7, 8 hours a day, whatever the latest number is. And this activity you’re talking about is kind of sporadic, watching no specific programs. So most people watch a lot of TV and they like these packages of linear networks. And the services we’re talking about are not, at this point, a substitute for that. Having said that, there are people who don’t watch TV very much and they’re quite satisfied with just being able to watch a few shows now and then. And we all know one of those people and I think that affects our perception of what’s really going on in terms of the mass market.

*Per my disclosure, I not only like the guys over at Business Insider, but I have a vested interest in their success.

• Showing TV shows the day after they air, like Hulu does.
• Renting TV shows and movies one at a time, on demand, like Amazon, Apple, Walmart and many others do.
• Renting video games, like GameFly does.
• Getting more people to sign up for its DVD rental service, which is what Netflix used to do.

So what is Reed Hastings trying to do? He explained it again during his company’s conference call Wednesday night, but it’s the same message he’s been delivering for some time: He’s trying to create the Web version of HBO or Showtime.

That is: A premium cable channel that gives subscribers lots of viewing choices — including some stuff they can’t see anywhere else —  but not unlimited choices.

That may disappoint some customers, investors and even reporters. Because the idea of a maverick Internet video service that could upend all of Hollywood and the TV industry sounds pretty exciting. People are still hoping for one, perhaps in the form of a “virtual” cable service – perhaps from Google or Apple – though yesterday Hastings said he doesn’t believe that’s happening, either.

But Hastings’s more modest ambitions are popular enough: He now has 23.5 million Web video subscribers worldwide, which is more than CBS’s Showtime has. And he is creeping up on Time Warner’s HBO, which has around 28 million subs. [UPDATE: Let's make this an apples-to-apples comparison: Netflix has 21.7 million Web video subs in the U.S.; that 28 million number for HBO is US-only, too.]

Still, Hastings will need to keep reiterating his plan for some time in order for everyone to get it.

That’s partly his fault, because he hasn’t always been consistent. Last summer, for instance, he said the company would start marketing its DVD-only business again, but the company has since canceled those plans (and now rarely acknowledges DVDs exist, even though they are a huge business for Netflix). Last fall, Netflix also said it would get into the videogame rental business, but those plans have been scrapped, too.

“We are just another network competing for viewing time with, and licensing content from, other networks,” Hastings wrote in his letter to shareholders yesterday. That’s not quite as compelling as “All the movies and TV you’ll ever need, for $8 a month,” but it’s the truth, and it seems to work for lots of people.

But at least as important are the company’s subscriber numbers and guidance, which should give us a much better sense of whether consumers have forgiven/forgotten its missteps of 2011. Netflix has already warned investors that it would lose money through much of 2012, largely because of its international expansion plans.

Q4 Domestic streaming: 22 million subs
Q4 Domestic DVD: 11.17
Q4 International: 1.86 million

Outlook: The company had already warned that it may not turn a profit in 2012, and it is now being more explicit about that, citing expansion costs and diminishing DVD revenue: “We expect modest quarterly losses, as well as losses for the calendar year.

Netflix ended the year with 24.4 million U.S. subscribers. That’s up 25 percent from the previous year, and — crucially — up from the previous quarter’s total of 23.79 million subs. That doesn’t mean its customer base has completely forgiven the company, but at the very least it means it is growing again.

Investors are pleased, and are pushing the stock up 10 percent in after-hours trading.

This is a case where the cheat sheet that Citigroup’s Mark Mahaney provides is particularly useful (click to enlarge).

Here’s a very interesting note on competition from Amazon: Netflix agrees with a New York Post report this morning which says Amazon will offer a standalone video service: “We expect Amazon to continue to offer their video service as a free extra with Prime domestically but also to brand their video subscription offering as a standalone service at a price less than ours.”

Hope to hear more about that from CEO Reed Hastings during the company’s conference call, which starts at 6 pm ET.

Much of what we saw at CES relates to things we’ll be seeing 24 months out. In my mind, it’s all good: we’ll be able to target better, we’ll be able to segment better. The ads will be delivered on screens that are sharper, look better, larger, which ultimately provides more effective communication. There’s one last element: in the role that we [media buyers] play, we have a responsibility to ensure that technology develops in a manner that doesn’t shake up the supply-and-demand equation of our business, doesn’t destroy the content amortization business, isn’t disruptive simply for the sake of being disruptive.

If it does alter the supply-and-demand equation, it needs to do so positively, not negatively. When you have the share of the deal volume that we do, you can’t just be passive about it. You have to try and influence it. The technologies and devices that begin to get manifested at a trade show like this needs to be guided, so that it all works out in the best interests of our clients.

– Irwin Gotlieb, Global CEO, GroupM; originally appeared at TVExchanger

We have a responsibility to ensure that technology develops in a manner that doesn’t shake up the supply-and-demand equation of our business.

A bold statement and, it seems, a common mindset for many incumbent business giants in their respective industries; a mistaken belief that they can somehow coax disrupting forces (be they new companies, or larger macro consumer trends) into conforming to their legacy business models and cost structures. As we have seen countless times, the actions of incumbents when faced with technology disruption often is to turn to litigation, legislation or other non-market strategies (i.e., anti-trust investigations, artificial price barriers) in an attempt to delay or block the challenging technology or companies. This perhaps works as a delaying tactic in the short term (Rio MP3 player case, Napster, book publishing agency pricing model with Amazon) but fails in the long term.

Mr. Gotlieb’s apparent belief that he and other advertising agency leaders can “ensure that technology develops in a manner that doesn’t shake up the supply-and-demand equation of our business” is futile in the long run, but perhaps more pernicious is the implicit arrogance of thinking the market force of the Web can be channeled into their bank accounts by sheer force of will. Of the many problems with this way of thinking, paramount is the ability to rationalize away making the hard choices and decisive actions to ensure the GroupMs of the world play a vital role in the new economy as they have done in the legacy one. (Cue Scotty from Star Trek… “You cannot change the laws of physics.”) For GroupM and other incumbents, it’s difficult to fathom, given how entrenched and advantaged they are, that they could drop the ball. But many will, as history has so often shown in times of market transformation.

Technology forces that bring greater efficiency and transparency to markets simply don’t care about privilege, access and rolodexes. They disrupt predecessor markets because of structural problems like price opacity and false scarcity that no longer “work” in the new market. Look at Google: its entire approach to advertising is to remove the middleman — just as, increasingly, the media-buying side of traditional agencies is reliant on the inefficient middleman, marketing up the cost of media to provide their services. Google is now selling $40B of media every year, the majority of it without a middleman (or at least with a different sort of middleman, and in any case, getting far lower margins than in traditional media bought by agencies.)

We watched as the music industry delayed its demise by suing Rio, Napster and literally hundreds of others, delaying the adoption of new business models not based on scarcity. We listen to Jeff Bewkes decry Netflix as the Albanian Army, as he feverishly works to reduce its influence with his content. We observe the movie industry fight with everything it has to protect the windowing strategy and defend limited access to content instead of moving toward open and immediate paid access to their movies. (Fantastic post on this from Rich Greenfield here, “Innovate Don’t Legislate” — registration required.)

And, as a microcosm of this larger conversation, we watched, over a very short period of time in the SOPA/PIPA debate, as the Web demonstrated the disruptive advantages of network effects and scale, as over a period of weeks, legislation that appeared all but ratified was shuttered, up to and including an implied Presidential veto.

Heady stuff. Granted, if we extend the metaphor and use SOPA/PIPA as a microscope, there are extremes on both sides, and it will be messy and require compromise if the big media incumbents and new technology disruptors are to learn how to co-exist. For big media companies and the service businesses that cater to them, this means recognizing the practical realities of changed business models — probably for the most part that their cost of production needs to drop dramatically and they need fundamentally to re-think distribution and customer relationship management to remain profitable and relevant.

On the tech side, it means recognizing that progress requires some level of institutional engagement and political compromise — because like it or not, this is the way our system of government works and how laws get written. This won’t be easy or natural, as it’s anathema to the culture of how new media tech and the start-ups that encompass it conceptualize and operate in our worlds. Facing reality and then demonstrating a bit more collaboration and compromise, however, would go a long way and be better for the customers who, like our democracy, these industries ultimately serve. Because it’s the customers who are in the driver’s seat, and increasingly they know it.

Perhaps it’s pollyanna-ish, but I bet on technology. Big media has the most to lose, because after decades of the game being rigged in its favor, the tables are turning. Of course it’s difficult and painful for media incumbents to embrace digital markets, considering these markets ultimately are smaller and have less attractive economics. That’s presumably why big media executives are so well compensated — if it were easy, anyone could do it. The alternative, however, is to be disrupted by new entrants that don’t have any allegiance to aging business models, and couldn’t care less how out of whack someone else’s cost structure is.

Coming back to Mr. Gotlieb’s view, I offer these thoughts. First, incumbents won’t be able to meaningfully guide the technology juggernaut of more efficient advertising mechanisms, so it’s perhaps better for them to focus their energies and advantages toward thoughtful reinvention. New technologies are bringing actual measurable performance and more efficient means of buying to a large share of advertisers. The challenge for incumbents is to adapt their enterprises to embrace this chaos and profit from it. The good news is, it’s doable. However, to think they can bluster their way out of this disruption is a fool’s errand.

David Pakman has been an internet digital media entrepreneur since 1997. He co-founded the Apple Music Group in 1995, worked at N2K (one of the first online music companies), co-founded MyPlay (pioneer of digital music locker), and was COO/CEO of eMusic for five years. Pakman is now a Partner at Venrock in NYC, investing in early stage internet and digital media companies.

Google announced the plan last fall, but yesterday, YouTube content boss Robert Kyncl held a formal coming-out party for the plan, with a presentation for a packed house at the Consumer Electronics Show. And after that, I talked to him about why YouTube had changed course.

After all, plenty of people seem to like YouTube just the way it is. It attracts 800 million users a month, who watch a staggering three billion hours of clips a day. And while Google has never come out and disclosed the site’s finances, it frequently hints that it is a big business, and perhaps a profitable one.

And if YouTube really wants to get more premium stuff for the site, why not go out and buy the stuff that Hollywood and the TV guys are already making? Google could certainly afford it, and Big Media has gotten very comfortable about putting its stuff online, as long as it’s getting a big check for it. Kyncl knows that well, since he used to arrange those deals at Netflix, before joining Google in 2010.

You can see Kyncl’s answers here — apologies for the extra-shaky cam — and below that, you can see the full CES presentation. And in a couple weeks, you can hear from Kyncl’s boss, YouTube CEO Salar Kamangar, at our D: Dive Into Media conference. Registration details here.

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]]> http://allthingsd.com/20120113/channel-changer-one-on-one-with-youtube-content-boss-robert-kyncl-video/feed/ 0 http://allthingsd.com/20120109/is-dish-punching-the-networks-with-its-supersized-dvr/ http://allthingsd.com/20120109/is-dish-punching-the-networks-with-its-supersized-dvr/#comments Mon, 09 Jan 2012 21:43:07 +0000 Peter Kafka http://allthingsd.com/?p=161807 Yup. It’s a ginormous DVR.

Per earlier reports, Dish Networks’s big rollout at the Consumer Electronics Show today is focused on “The Hopper,” a supersized video recorder that lets users store two terabytes of data. In English, that means about 250 hours of high-def shows, or 1,000 hours of regular shows.

There are a slew of other bells and whistles, and Dish had other stuff to announce, too, like an expanded deal with Time Warner’s HBO to offer more programming to Dish customers who also pay for the premium TV service, more programing for its Blockbuster movie service, and a broadband Internet via satellite option.

Oh, and a kangaroo, which did duty as both mascot and onstage prop.

But if you were looking for an “over the top” service that lets you get pay television over the Web without getting the standard pay TV bundles, this isn’t it. It’s possible that Dish CEO Joe Clayton will offer that one day, but it’s not here now.

The chief focus here is on the DVR, which doesn’t seem like it’s the kind of thing that will attract new customers, but might keep existing ones happier. Nothing wrong with that.

The most interesting wrinkle here is the Hopper feature that will let customers automatically record the primetime lineup of the four broadcast networks — News Corp.’s Fox, Disney’s ABC, Comcast’s NBC and CBS — and store the shows for up to eight days.

Anyone with a DVR is already able to record any show they want, and keep it as long as they have space, so this isn’t an earth-shifter. But it seems clearly designed to poke a bit at other playback options, like the video-on-demand offerings that many broadcasters offer for free, or the Hulu/Hulu Plus service co-owned by Disney, Comcast and News Corp. (News Corp. also owns this Web site).

All of those options, for instance, make you wait at least a day after a program airs before they let you see it. And the networks only offer some of their shows through those options (and CBS doesn’t work with Hulu at all).

My understanding is that Dish didn’t ask the broadcasters for permission on this one, and the way it’s constructed — broadcast-only, with a time limit, etc. — make me think it believes it has created something that doesn’t require a signoff, at least legally speaking. But since all of the big pay TV providers — Dish included — are signing “retrans” deals with the broadcasters and their owners, and those deals include restrictions on how the broadcast shows can be used, it seems like Dish would want to make sure its partners are okay with this.

And they might be! As a network executive pointed out to me this afternoon, this doesn’t have to be negative for the broadcasters. If Dish, for example, can get Nielsen to give the programmers full credit for the shows stored on the Hopper, then that’s a good thing — they’d rather get paid for that eyeball, for instance, than one they sell on the Web.

But it still seems like Dish is playing this one deliberately close to the line.

[Shutterstock/Anna Jurkovska]

]]> http://allthingsd.com/20120109/is-dish-punching-the-networks-with-its-supersized-dvr/feed/ 0 http://allthingsd.com/20120108/dish-gets-ready-to-serve-up-broadband-and-a-giant-dvr/ http://allthingsd.com/20120108/dish-gets-ready-to-serve-up-broadband-and-a-giant-dvr/#comments Sun, 08 Jan 2012 16:11:36 +0000 Peter Kafka http://allthingsd.com/?p=161290 Dish Networks is a satellite TV company with some 14 million customers. But CEO Joesph Clayton has much bigger plans for the company.

We saw the first signs of that last year, when Clayton bought Blockbuster out of bankruptcy, then used the video company to create a kind of Netflix challenger. Tomorrow we should see the next steps, when the company rolls out a big announcement at the Consumer Electronics Show.

Here’s a good bet on what that will be: A new broadband Internet service, along with a super-sized DVR.

Trade pub Multichannel News has the details, gleaned from a report that went up briefly on Dealerscope, then went away, presumably because it violated a pre-briefing embargo. (Thanks to Jason Hirschhorn’s very useful Media Redfined feed for flagging.)

Since we never agreed to the embargo, happy to summarize here (not surprisingly, Dish declined to comment):

• The Internet service will be marketed to 8 million customers, most of whom can’t get fiber or cable broadband.
• The giant DVR will be called “The Hopper” and is designed to save and transmit shows in different parts of your house, and presumably outside of it, via Slingbox. You can see a teaser page for that one here, or look at the screenshot at the bottom of this post.
• There’s a cool feature that looks like it will automatically record the primetime lineups for the four broadcast networks (News Corp.’s Fox, Comcast’s NBC, Disney’s ABC and CBS).

All of which sounds interesting, and useful for existing Dish customers. But it doesn’t sound like Dish is ready to try a true “over the top” Web-based pay TV service that would rival traditional cable.

A lot of people think someone, or many people — could be Dish, could be Apple, could be Verizon, etc., etc., etc — is trying to line up one of those. But figuring out how to do that involves lots of deals with TV studios and programmers, and I don’t get the sense that anyone has those pacts yet. If Dish does, and announces it tomorrow, then it will truly be a press conference worth tuning into. If not, no worries — I’ll be watching anyway and will report back.

MORE CES NEWS:

• Complete coverage
• HP’s Former CTO: Ultrabooks Are Nothing New, webOS Still Has Life Yet
• Walt Shows Off CES Gadgets for Fox Business News (Video)
• What Kind of Web Video Plans Does Sony Have? (Video)
• Fujitsu Seeking Way Into Crowded U.S. Smartphone Market
• Why Rhapsody Is (Probably) Bigger Than Spotify — In the U.S.
• Microsoft Beefing Up CeBit Presence Even as It Pulls Back on CES
• Inside the CES Lost & Found
• FCC Chairman Has New Tablet, but Same Script: More Spectrum!
• Verizon Wireless: We Want to Connect Five Devices for Every Subscriber
• Ultrabooks From HP and Lenovo That Are (Kinda, Sorta) Different
• Walt and Katie Take a Tour of CES (Video)
• Schmidt-Storm Alert: The Google Chairman Didn’t Like Your Question
• T-Mobile Expands Bobsled Messaging Service
• Intel Shows Just How It Plans to Get Into Phones (Video)
• Motorola CEO: We’re Going to Release Fewer Phones This Year
• Kinect Helps Keep Aging Xbox at the Top of Its Game
• More From T-Mobile CEO: On Pricing, LTE and That Ever-Elusive iPhone
• Exclusive: New Boss Acknowledges Windows Phone Still Has “Awareness Problem”
• And You Thought Jawbone UP Was Going to Miss the CES Party!
• Interview: T-Mobile CEO Says No Second AT&T Deal Out There
• Grover Is at CES and I Am Missing It
• BlueStacks Bringing Android Apps to Windows 8
• Why the Future of TV Won’t Be Here Soon
• Nvidia’s Tegra 3 Tries to Save Battery in All Sorts of Different Ways
• Dynamic Dual Coverage: Ballmer’s Last Act in Vegas and the BCS Championship in 3-D
• Microsoft Phoning In Its Last CES Keynote
• Myspace — Yes, Myspace — Says It’s Going to Sell You Web TV
• Samsung Unveils “Super” 55-Inch OLED TV
• Nokia Unveils That LTE Windows Phone It’s Been Dying to Share
• Steve Ballmer Gives Ralph De La Vega a Very … Vigorous Greeting (Video)
• Interview: AT&T’s De La Vega on LTE, Tablets and Life After T-Mobile
• AT&T’s De La Vega: Shared Data Plans Still in the Works
• LG: 55-Inch Glasses-Free 3-D Screen Is on the Way
• LG Pushes 4G Smartphone Through Verizon: The LG Spectrum
• Live: AT&T’s Vegas Act Stars LTE and, Making Her Return to the Stage, Nokia
• CES Notebook: The Constant Search for Power and Vegas’ Worst-kept Secret
• Belkin Bringing Mobile TV to Lots of Cellphones, Will Anyone Tune In?
• Acer Introduces “World’s Thinnest” Ultrabook and a “Me-Too” Cloud Service
• There Better Be Some Cool Stuff at CES, Because CE Holiday Sales Data Bytes!
• CES 2012: Snooki and Bieber Are In, Gaga Is Out!
• Coming to a Smartphone Near You: Gorilla Glass 2
• RIM Hopes Next PlayBook OS Will Impress at CES
• Ultrabooks, the Ultra-Fancy New Name for Laptops
• At CES, Expect More Gadgets Telling You to Get Off the Couch
• Intel to Detail Its Phone Plans at CES Next Month
• Microsoft Pulling Out of CES After Upcoming Show
• Intel to Detail Its Phone Plans at CES Next Month
• Dell Will Drop the Flashy Vegas Act for CES This Year
• Ultrabook Conga Line Preps for CES 2012

[Shutterstock/Marko Cerovac]

]]> http://allthingsd.com/20120108/dish-gets-ready-to-serve-up-broadband-and-a-giant-dvr/feed/ 0 http://allthingsd.com/20120106/hollywood-showdown-blockbuster-redbox-balk-at-warners-new-window/ http://allthingsd.com/20120106/hollywood-showdown-blockbuster-redbox-balk-at-warners-new-window/#comments Sat, 07 Jan 2012 01:08:38 +0000 Peter Kafka http://allthingsd.com/?p=161202 Warner Bros. wants to keep its DVDs out of the hands of renters for an extra month. Blockbuster and Redbox don’t want to play along.

Which means we’re in for an interesting game of chicken between Time Warner’s movie studio and the two rental services. And the result will be meaningful for Netflix, too.

Here’s where things stand: Warner Bros wants to double the “window” that keeps new DVDs away from rental services from 28 days to 56 days, a strategy that’s supposed to encourage would-be renters to buy DVDs instead. Netflix intends on going along with the plan and will be able to buy discs directly from the studio at wholesale rates.

Warner plans on announcing the new terms next week at the Consumer Electronics Show. But though I reported yesterday that Dish Network’s Blockbuster and Coinstar’s Redbox had signed on, the two companies — directly and indirectly —  say that’s not the case. Earlier today a Coinstar rep told me the company won’t agree to a longer window, and a person familiar with Blockbuster’s thinking now says the same thing.

If neither side backs down, then Blockbuster and Redbox would have a marketing advantage over Netflix, since the companies could boast about getting new movies before their rival.

But that assumes they can get their hands on the movies. That will be costly, and perhaps quite difficult.

In the past, Redbox has bought movies directly from retailers (Netflix also used to do the same thing in the service’s early days. But chains like Wal-Mart and Target have instituted buying caps on their discs  that are supposed to thwart that strategy. (Thanks, Janko Roettgers.)

Grab your popcorn!

]]> http://allthingsd.com/20120106/hollywood-showdown-blockbuster-redbox-balk-at-warners-new-window/feed/ 0 http://allthingsd.com/20120106/you-watch-a-lot-of-web-video-you-watch-way-more-tv/ http://allthingsd.com/20120106/you-watch-a-lot-of-web-video-you-watch-way-more-tv/#comments Fri, 06 Jan 2012 17:41:21 +0000 Peter Kafka http://allthingsd.com/?p=160950 It’s possible that you, AllThingsD reader, are a cord-cutter or that you know a cord-cutter. Or that you’d like to cut the cord if you could.

But odds are much better that you:

1. Watch a lot of Web video, and
2. Watch a ton of TV.*

We’ve seen similar stats before, but always good to see a reminder. Today’s comes from Nielsen, which has a very cool looking “State of the Media 2011” report full of cool infographics.

This one, alas, is a tad more vertical than I’d like, but I’m a beggar. So here you go. Note that even you youngsters that watch the most video still put in more than 20x time watching TV (that’s real TV, not Netflix on your flatscreen, etc):

This data comes from Q2 of last year, and it’s self-reported, so it’s possible that it will change dramatically over time, and/or that it’s under- or over-counting one or more datapoints. [UPDATE: My mistake. Nielsen tells me the viewing and Internet data comes from their automated meters which track device behavior, not from self-reported surveys.]

But particularly because we’re about to enter a phase where we hear many loud pronouncements about The Future Of TV (more on that soon), keep in mind that The Present Of TV seems to work for lots of people. For some it’s the equivalent of a full-time job.

*And yes, I realize that some of you could be watching a ton of TV without paying for cable, because you’re getting free HD signals over the air. But my hunch is that’s a very small group for now.

]]> http://allthingsd.com/20120106/you-watch-a-lot-of-web-video-you-watch-way-more-tv/feed/ 0 http://allthingsd.com/20120105/warner-brothers-will-make-netflix-redbox-blockbuster-wait-longer-for-new-movies/ http://allthingsd.com/20120105/warner-brothers-will-make-netflix-redbox-blockbuster-wait-longer-for-new-movies/#comments Thu, 05 Jan 2012 22:21:53 +0000 Peter Kafka http://allthingsd.com/?p=160652 Want to watch a new movie just out on DVD from Warner Brothers? You’re going to have to buy it, or wait even longer to get it from Netflix or other disc renters.

A new deal between Time Warner’s movie studio and Netflix, Redbox and Blockbuster will double the “window” for new releases. That means the services will now have to wait 56 days after the discs first go on sale to offer them to their customers, instead of 28 days. [UPDATE: Redbox parent Coinstar now says they haven't agreed to a new deal; see below]

The move is part of Hollywood’s ongoing campaign to bolster flagging DVD sales, and sources tell me the new deal is supposed to be announced at next week’s Consumer Electronics Show in Las Vegas. Warner Brothers executives have already talked publicly about extending the current window.

This is the second time that Warner has been able to get the rental services to wait before distributing its movies.

In 2010, it struck deals with Netflix, and later Coinstar’s Redbox, to wait 28 days before renting its new discs. Coinstar and Netflix later landed similar pacts with most of the other big studios. (Coinstar did up end up in legal battles with Universal Studios and 20th Century Fox, which like this Web site is owned by News Corp.)

Two years ago, Netflix was able to argue that by delaying access to DVDs, it was able to get its hands on more streaming content, and lower prices for the discs it did buy. This time around, though, Warner won’t be granting any additional digital rights to the studios. It will simply be offering them the ability to buy discs in bulk, at a significant discount to retail pricing, like they already do.

Earlier today, news broke that HBO, another Time Warner unit, would stop selling its DVDs to Netflix altogether, but sources tell me the two moves aren’t directly related. Next week’s planned announcement is supposed to be tied to Warner Brothers’ continuing push for Ultraviolet, an industry consortium that’s supposed to allow home video buyers to watch their purchases on multiple machines, in multiple formats.

Reps for Time Warner, Coinstar, Netflix and Blockbuster parent company Dish Network declined to comment.

UPDATE: Coinstar is now commenting, via email. “The current agreement Coinstar has with Warner Bros. is to receive movie titles 28 days after their release. No revised agreements are in place.” The company’s current deal with Warner Bros. expires at the end of January; PR chief Marci Maule referred me to comments CEO Paul Davis made last fall about pursuing “workarounds” if studios try to extend their windows.

]]> http://allthingsd.com/20120105/warner-brothers-will-make-netflix-redbox-blockbuster-wait-longer-for-new-movies/feed/ 0 http://allthingsd.com/20120105/where-did-nine-million-cable-subscribers-go/ http://allthingsd.com/20120105/where-did-nine-million-cable-subscribers-go/#comments Thu, 05 Jan 2012 12:24:01 +0000 Peter Kafka http://allthingsd.com/?p=159882 New year, new chance to talk about cord-cutting/shaving/avoiding. Which is either a big deal that’s going to get bigger, or basically imaginary, depending on who you like to listen to.

If you’re in the big-deal camp, then you’ll like a new survey from Deloitte, which finds that a staggering one in five U.S. residents say they have either cut the cord or are thinking about doing it. The breakdown: Nine percent of survey respondents say they’ve recently cut the cord and are getting their shows from Netflix, Hulu, iTunes, etc. And another 11 percent say they might do it. (Click image to enlarge.)

To repeat: The Deloitte survey is asking people about cutting pay TV — Comcast, Verizon, Dish, etc. Not cutting back on certain channels like HBO (that would be cord-shaving) or simply never signing up in the first place (that would be the “cord-nevers” we’ve started to hear about).

How can that possibly square with the pay-TV industry’s reported results, which show that overall subscription levels remained basically flat last year? Even if you allow for a significant margin of error, things don’t add up: If the pay-TV business had lost a single percentage point of its customers in the last year, it would be a huge deal.

But Deloitte is reporting that approximately nine million people say they’ve recently stopped paying for TV. That’s the entire population of New York, plus another million or so, vanished. Can’t be.

I’ve asked Deloitte if they’ve got any insight on the gap, but haven’t heard back. But my hunch is that — for now, at least — cord-cutters are like vegans: They’re real, and they’re out there. They’re particularly notable in certain places like New York, the Bay Area and college towns. And they over-index at certain Web gathering places, like this one. But McDonald’s sales are still chugging along.

]]> http://allthingsd.com/20120105/where-did-nine-million-cable-subscribers-go/feed/ 0 http://allthingsd.com/20120104/netflix-reminds-us-that-its-a-streaming-video-company-again/ http://allthingsd.com/20120104/netflix-reminds-us-that-its-a-streaming-video-company-again/#comments Wed, 04 Jan 2012 15:30:37 +0000 Peter Kafka http://allthingsd.com/?p=159775 Sure, you can rent DVDs from Netflix if you want — and are willing to work a bit. But the company reminds you every chance it gets that it’s really a streaming video company.

Today’s underscore opportunity: A press release announcing that Netflix customers streamed “more than 2 billion hours” of video during the last three months of 2011. CEO Reed Hastings telegraphed this one in December, when he told an investor conference that the company was set to stream “well over” a billion hours for the quarter.

But beyond a boilerplate reference to “more than 20 million streaming members,” Netflix isn’t saying how many customers were watching that video. And it’s not providing any other meaningful metrics until it announces Q4 earnings in about a month. So no need to spend any more time on this one.

]]> http://allthingsd.com/20120104/netflix-reminds-us-that-its-a-streaming-video-company-again/feed/ 0 http://allthingsd.com/20120104/roku-to-launch-cordless-streaming-stick-for-smart-tvs/ http://allthingsd.com/20120104/roku-to-launch-cordless-streaming-stick-for-smart-tvs/#comments Wed, 04 Jan 2012 14:59:16 +0000 Lauren Goode http://allthingsd.com/?p=159527 Roku, maker of competitively priced set-top boxes that stream Web video on TVs, is introducing a new device it thinks will offer a simpler option for Internet connectivity than some “smart” TVs.

Today, the company is unveiling plans for its Roku Streaming Stick, a flash-drive-sized dongle that plugs into the back of television sets to enable the same streaming capabilities as a Roku box.

The Streaming Stick will deliver HD streaming video and feature Wi-Fi capabilities, a processor and upgradable software. The Stick won’t require any cables or a separate remote. It will, however, work only on TV sets with HDMI ports that are enabled for Mobile High-Definition Link (MHL).

Roku founder and CEO Anthony Wood said the company plans to continue making Roku set-top players. But as the television industry shifts more toward smart TVs that connect to the Internet without use of an additional device, Roku wants to be the solution that TV manufacturers look to in the interim.

The connected TV category is forecast to grow at a 30 percent compound annual rate between now and 2014 — up to more than 123 million shipments, according to a report from DisplaySearch earlier this year. The report also predicts continued complexity in the market, with a variety of streaming video services available to consumers, and tech giants like Apple, Google, and Microsoft — in addition to smaller companies like Roku and Boxee — offering boxes for streaming Internet media.

Wood points out that despite the growing number of smart-TV shipments, Roku believes the actual connectivity rate on those TVs is still relatively low. Consumers, he said, are still looking for devices that can be easily upgraded when it comes to getting the Internet on their television sets.

Roku hasn’t yet determined the price of its Streaming Stick, but Wood said it would likely cost between $50 and $100, and will ship in the second half of 2012. While Roku hopes to partner with television manufacturers to bundle the dongle with TV purchases, the Streaming Stick will at first be sold individually, as well as alongside Insignia brand TVs from Best Buy.

California-based Roku launched in 2008 with the introduction of the first Netflix streaming player. Its lineup of devices now includes the Roku LT, the Roku 2 HD, the Roku 2 XD and the Roku 2 XS, which have around 400 channels and apps, including Netflix, Pandora, HBO GO, Vimeo, Hulu Plus, and Amazon’s streaming video service. The Roku 2 XS also offers Angry Birds, which can be played using a Roku XS remote.

Wood said sales of Roku players are up 300 percent over last year, with around 2.5 million Roku devices sold. He added that the company has been focused recently on casual games, with the introduction of Pac-Man and Jeopardy game apps on Roku, in addition to Angry Birds. Roku is also broadening its retail presence to more than 13,000 storefronts across the U.S.

Roku isn’t the only small set-top box maker shifting its strategy to adapt to the growing market for smart TVs. Boxee, maker of the Boxee Box, recently said it would offer a Live TV dongle for watching TV programming through the Box. Shortly afterward, the start-up also said it would be releasing its last software update for its PC-based application, as it focuses more on TV-compatible devices.

]]> http://allthingsd.com/20120104/roku-to-launch-cordless-streaming-stick-for-smart-tvs/feed/ 5 http://allthingsd.com/20120103/was-new-years-eve-a-netflix-moment-for-uber/ http://allthingsd.com/20120103/was-new-years-eve-a-netflix-moment-for-uber/#comments Tue, 03 Jan 2012 18:10:24 +0000 Lauren Goode http://allthingsd.com/?p=159279 On New Year’s Eve, some users of Uber’s driver-on-demand service discovered that a quick tap of a smartphone app could cost them $75 or more for a ride across town, thanks to demand-based pricing.

But despite the fact that some customers were dismayed, Uber isn’t throwing in the towel on dynamic pricing. In fact, the company, which is usually very transparent about its surge pricing plans, is considering whether to raise fares regularly on weekends.

Could this be a Netflix-like moment for small start-up Uber, just as it’s trying to grow?

You’re probably thinking, and rightly so, that Netflix and Uber are two very different companies: Netflix is a 14-year-old public company that faces tough competition in a growing premium video-streaming market; as of the quarter ending Sept. 30, it had around 24 million subscribers. Uber is a 1-and-a-half-year-old start-up using a mobile phone application to create a marketplace that connects consumers with a limited number of town-car drivers. Netflix is available in the U.S., Canada and 43 countries in Latin America and the Caribbean; Uber currently operates in six U.S. cities and in Paris. Subscribers pay a monthly fee to Netflix; Uber users pay per ride.

But Netflix provides a recent example of price adjustments that resulted in negative consumer reaction, to put it mildly. The company said last July that it was eliminating the option to combine DVD and streaming video services, and in doing so, hiked the price by 60 percent for consumers who wanted both options. Netflix’s stock plunged; the company later cut its guidance by one million subscribers, and eventually reversed its plans to offer a DVD-only service.

As Uber has explained a few times now, the sticker shock some customers experienced on New Year’s Eve was the result of surge pricing, which Uber has started putting into effect on nights when drivers might be busier than usual. Travis Kalanick, Uber’s founder and CEO, has pointed out that if Uber doesn’t make it worth its drivers’ while to be on the platform, there won’t be any drivers available.

When it comes to tech products and services, users often don’t react well to change — at first. Professionals and consumers alike become accustomed to a product, and some initially see change as disruptive to their productivity or proficiency in that tool. There’s also often a backlash when the change results in a threat — real or perceived — to privacy, as we’ve seen with reactions to Facebook’s ever-evolving settings.

But when the change ultimately costs users or subscribers something they can peg a dollar amount to — such as the Netflix price change, or as with last week’s Verizon Wireless convenience fee — the options being weighed become that much clearer for the consumer.

In other words: Should I stay, or should I go now?

Uber does not have to worry about shareholders, or FCC scrutiny. The number of complaints logged — 97 disgruntled users and 15 whose Uber apps on their smartphones might not have been working correctly — was a small percentage of the thousands of Uber rides that were booked on New Year’s Eve. It could be said that this is more of an Airbnb moment than a Netflix moment for Uber: A case of a small start-up needing to do a little damage control.

From a business perspective, Kalanick says, New Year’s Eve was still a success. Early-stage Uber investor Jason Calacanis tweeted that he “loves” Uber’s surge pricing, as it ensures availability. (Calacanis did not immediately respond to AllThingsD’s request for comment on his tweet.)

Love uber’s surge pricing as it helps drivers & ensures availability. 5x 3 days a year is ok by me. #angelinvestment http://t.co/v2XuLT80

January 1, 2012 5:44 pm via Tweet ButtonReplyRetweetFavorite

@Jason

Jason Calacanis

Another regular Uber user, SproutSocial CEO Justyn Howard, said he used Uber on New Year’s Eve, and noted that his car ride didn’t seem any different than usual. He said he believes Uber is especially good with data-driven strategy, and that supply-and-demand management will become easier for Uber over time. “Overall, I expect the feedback and data gathered from NYE will be put to good use,” Howard said.

Uber is currently refunding some unhappy customers, on a case-by-case basis.

But for Uber, and many other start-up companies, reaching the average consumer will be critical if it wants to grow into a bigger company. By working with town-car companies and not taxis — as some other app platforms do — and charging a $7 to $8 base fare for rides, Uber is already a company that delivers a premium service that not everyone can afford.

If Uber institutes dynamic pricing on regular weekend nights, the company could solve the problem of ensuring there are enough drivers willing to opt in to Uber’s app platform, but at the risk of losing out on customers that aren’t willing to pay two times or more the standard fare.

The tech-savvy crowd, after the initial sticker shock, might accept this.

The “normals,” however, will likely stand outside a little longer hailing taxi cabs — or find other means of getting around town.

(Image courtesy of Flickr/McSmith86)

]]> http://allthingsd.com/20120103/was-new-years-eve-a-netflix-moment-for-uber/feed/ 2 http://allthingsd.com/20111230/resolutions-for-2012-comic/ http://allthingsd.com/20111230/resolutions-for-2012-comic/#comments Fri, 30 Dec 2011 22:30:12 +0000 Nitrozac and Snaggy http://allthingsd.com/?p=158420

]]> http://allthingsd.com/20111230/resolutions-for-2012-comic/feed/ 3 http://allthingsd.com/20111228/viral-audio-a-year-in-tech-a-look-back-at-2011-and-forward-to-2012/ http://allthingsd.com/20111228/viral-audio-a-year-in-tech-a-look-back-at-2011-and-forward-to-2012/#comments Wed, 28 Dec 2011 09:06:46 +0000 Kara Swisher http://allthingsd.com/?p=157537

I was on San Francisco’s public radio station today, talking about this past year in tech with “Forum” host Michael Krasny and fellow panelists, former TechCrunch writer Sarah Lacy and CNET’s Molly Wood.

2011 was a big year, as it turned out, with good and bad news for companies such as Apple, Google, Amazon, Netflix and others.

We also looked forward to 2012, which will include new online TV efforts and, of course, the much-anticipated Facebook IPO.

Here’s the chat:

]]> http://allthingsd.com/20111228/viral-audio-a-year-in-tech-a-look-back-at-2011-and-forward-to-2012/feed/ 0 http://allthingsd.com/20111227/survey-sez-consumers-still-miffed-at-netflix-but-give-even-bigger-kiss-to-amazon/ http://allthingsd.com/20111227/survey-sez-consumers-still-miffed-at-netflix-but-give-even-bigger-kiss-to-amazon/#comments Wed, 28 Dec 2011 05:00:40 +0000 Kara Swisher http://allthingsd.com/?p=157523

It’s not clear if Netflix’s recent series of snafus are Amazon’s gain or not. But in a just-released report by ForeSee, one went up and one went down.

It’s an easy guess which was which.

In the well-known customer satisfaction survey of the Top 40 online retailers during the holiday season — which ForeSee has been conducting twice a year for the last seven years — Amazon rose to its highest spot ever, while Netflix’s score dropped significantly.

Amazon got an 88 out of 100, up two points, while Netflix dropped seven points to 79. The survey noted that “Netflix saw scores drop in every single element of the website that ForeSee measures, including site content, site functionality, merchandise, and prices.”

Ooops.

(Netflix fared better with customers in another poll last week, conducted by Citigroup. As Peter Kafka noted: “They’re less happy than they used to be. But they don’t seem to be going anywhere.”)

But in the ForeSee survey, Netflix moved from being a consumer darling to just another face in the crowd. It garnered the average score, which is also 79, a number that has risen from 74 since 2005.

But Netflix was not the only online retailer hit. Also down: Gap.com (down 6 percent to 73), and Overstock.com (down 5 percent to 72).

But on the up: TigerDirect.com (up 8 percent to 79) and J.C. Penney (up 6 percent to 83).

In general, ForeSee concluded that consumers are starting to get the hang of this e-commerce thing, and have become less price-sensitive, too.

And here’s a pretty chart explaining it all (click on the image to make it larger):

]]> http://allthingsd.com/20111227/survey-sez-consumers-still-miffed-at-netflix-but-give-even-bigger-kiss-to-amazon/feed/ 0 http://allthingsd.com/20111222/netflix-really-really-doesnt-want-your-dvd-money/ http://allthingsd.com/20111222/netflix-really-really-doesnt-want-your-dvd-money/#comments Thu, 22 Dec 2011 20:25:21 +0000 Peter Kafka http://allthingsd.com/?p=156352

Streaming is the future. We’re focused on it. DVD will do whatever it’s going to do. We’re not — we’re going to try to not hurt it, but we’re not putting a lot of time and energy into doing anything particular around it and then we’re focused on, how do we take advantage of this incredible global streaming opportunity.

That was Netflix CEO Reed Hastings, at the UBS media conference earlier this month, reiterating the point that Netflix has been making over and over again for some time: They want out of the DVD business, even though it is generating more than $1 billion a year for them.

Hastings and his team are convinced that even though consumers say that discs are important to them, their usage data shows that few people … use them. “Old fogey discs,” Hastings calls them.

Netflix tried very hard to accelerate the decline of DVDs with the Qwikster fiasco. Since then, Netflix has been careful to tell its subscribers who are still paying for DVDs that it is happy to have them around.

New subscribers are a different story, though. Netflix exclusively pushes its $8-a-month unlimited-streaming option, on its site and in its promotional materials. You have to work very hard to discover that the company still rents DVDs, and that’s by design.

Same deal for former subscribers that Netflix is trying to woo back: Even if you used to get both DVDs and streaming videos from Netflix, the company will only tell you about its streaming plan in its “come back!” emails. (See the screenshot of an email my colleague Tricia Duryee, who quit her hybrid plan this fall, got recently, at the bottom of this post.)

But the message is most clear for people who want to give someone a Netflix subscription as a present: The company no longer allows you to gift a subscription that includes a DVD plan, period.

Go ahead and see for yourself — there’s no way to give Reed Hastings and company an extra $8 a month for a service they’re still providing to some 11 million subscribers.

The one tiny workaround that the company offers (if you look very, very hard — or do what I did, and call up Netflix PR and ask) is the ability to let current subscribers extend their current deal. So, for instance, if you’re currently getting the equivalent of a $16-a-month hybrid disc-and-streaming option, and someone gives you a year-long $8-a-month streaming gift, you can convert that into a six-month hybrid plan.

But, boy, that’s complicated. Easier to just give someone a year of streaming, and then send them a check so they can add the DVD portion on their own. Which is what we just did this morning, here at the AllThingsD Brooklyn outpost.

So to repeat: If you work very, very hard, Netflix will let you give it money, and will let you rent DVDs in return. But it would really prefer that you didn’t.

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