Is Netflix Pushing Its Customers Into the Future?

As you’ve no doubt heard by now, Netflix raised their prices for their mailed-DVD/video streaming combo service from $9.99 a month to $15.98 a month. The 60% increase has set off a consumer firestorm, with massive numbers of Netflix customers threatening to quit one or more of the company’s services (44% of those surveyed by The Diffusion Group responded that they would probably cancel the DVD-by-mail service, 34% would cancel the streaming service, and 37% were looking to cancel their Netflix subscription altogether). Howerver, according to most pundits, Netflix is taking this tack to steer more users to streaming-only options, which the company sees as the direction it wants to take in the future.

 

For more information, see http://campaign.r20.constantcontact.com/render?llr=o8uqg7bab&v=001MtBt-olyudkecW61TR-VV_UVVeL_036qJ1HX_rDiib3RR_48_DprkMv6mPI_Zg2ClheVU_2yGx_l3jz58YtR2hp7Phdv5YCpIj707_CxEs-Vp8Z5N7uJjK5Kh-5kxcjVOaqLd9vpUxLac5Ck6JG11beMExKDbyI-Sl54IkXEz41XrY8pX9f8tlAxeLwMKRYBGYNJWR9K3St_NpR_IMEMF0e007a4oHed4crlHZPW9PnGwVw28sznpL6ev9NKZUH8TgTVgw-noyRPghCDN_uvVrg2NlfxBwIstao_9-kwqWnqqmBqTNCKqw%3D%3D

Connected Device Growth and Potential Continue to Rise

In a pair of somewhat related announcements concerning the Xbox 360, Microsoft revealed that the gaming console will soon be the recipient of a still-hazy live TV streaming service, while also boasting that it has broken the 55 million unit barrier in year 6 of its life cycle. The streaming service, which the company declined to describe in any kind of detail, would “change living room entertainment forever,” according to the press release. Current Xbox Live subscribers already enjoy Netflix, Hulu Plus, and ESPN as streaming partners. As for the Xbox 360 sales numbers, not only has Microsoft sold a massive number of the ubiquitous white boxes, sales continue to accelerate due to upgrades and add-ons such as Kinect, a trend that “no other console in history can…claim.”

See http://www.engadget.com/2011/06/03/microsoft-sells-55-million-xbox-360-consoles-claims-thats-cons/
Also see http://www.fierceiptv.com/story/microsoft-softly-debuts-streaming-live-tv-xbox/2011-06-06?utm_medium=nl&utm_source=internal

More Potential Trouble for Broadcasters?

Another startup, another potentially game-changing technology. Using $4.5 million in VC funding, Bamboom is testing a new service in New York state and Connecticut that allows users to watch broadcast television on any connected device, be they laptop computers, smartphones, or Internet-capable televisions. The company, based in New York, uses an approach that involves miniature antennas connected to the cloud that capture the broadcast stream. However, only in-market content is available; viewers in Chicago, for example, would not be able to watch shows from Houston. Bamboom has also announced integration with Netflix, but no information about a possible national rollout or pricing tiers have been released.

For more info, see http://www.fierceiptv.com/story/startup-promises-broadcast-tv-any-connected-device/2011-05-29

No. 1 Bandwidth User: Netflix

A couple of firsts occurred recently, both having to do with Netflix. First, the streaming and DVD-rent-and-mail company became the largest single consumer of Internet tubage in the world, its user accounts slurping up almost 25% of all domestic broadband traffic. Second, for perhaps the first time, paid content has surpassed free content in terms of web usage. What this portends for the future of entertainment, the Internet, and all of the pieces in between is anybody’s guess, but it sure looks like ISPs will have as big a say in it as anybody else. For a more in-depth look at this phenomenon, see our recent white paper, “The Rise of Netflix and Its Impact on Broadband.”

For more details, see http://www.cnn.com/2011/TECH/web/05/18/netflix.piracy.wired/index.html?hpt=T2 Also, see http://www.actiontec.com/products/solutions_broadband_fwp.php