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(Barron's)   Netflix: growth in streaming revenues means fewer red envelopes, more green paper, and soon the rest of the cable companies' dominoes will like a house of cards. Checkmate   (blogs.barrons.com) divider line 54
    More: Misc, EPs, Netflix, red envelopes, cable company, revenues  
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1932 clicks; posted to Business » on 22 Apr 2013 at 7:56 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-04-22 07:58:02 PM
Subby accidentally the whole thing?
 
2013-04-22 08:04:51 PM
The cable companies are working on it. Mind you, not by figuring out a way to offer a better product at a price consumers are willing to pay, but by getting net neutrality done away with, and prohibiting competition in the broadband market. Just ask some of the states where smaller towns that want to set up their own fiber network how much pushback they've gotten from the cable companies lately.
 
2013-04-22 08:09:02 PM
Two words: bandwidth caps.

Cable companies will not part with easy sources of revenue. As long as they can gouge customers for sub par networks, crap support, and atrocious customer service they will. Google's fiber plan scares them as evidenced by at&t's hissy fit after Google announced its Austin Texas fiber expansion.
 
2013-04-22 08:13:30 PM
Yep, and that's why I think Netflix and Google Fiber will be great friends. Two great tastes that taste great together.

/doctor said I needed more fiber in my diet
//why am I bleeding inside?
 
2013-04-22 08:15:07 PM
Competing with monopolistic companies that charge upwards of $80/month and treat you like garbage when you need their help isn't a very high bar to beat.
 
2013-04-22 08:19:13 PM
When will fark stop tormenting me about the cancellation of futurama?
 
2013-04-22 08:26:29 PM
they need more content. most of what i want to see isn't available. and, no, it isn't midget tranny porn either.
 
2013-04-22 08:27:08 PM
I love you, little Roku.
 
2013-04-22 08:29:56 PM

Mazzic518: Subby accidentally the whole thing?


Yes subby accidentally thing.
 
2013-04-22 08:49:21 PM

cherryl taggart: I love you, little Roku.


This, so, so much. I hope that someday, the NFL can work out a deal to bring games to the Roku. I'd pay a reasonable fee per season. Hell, I'd even take the national ads.
 
2013-04-22 09:00:42 PM

soopey: Two words: bandwidth caps.

Cable companies will not part with easy sources of revenue. As long as they can gouge customers for sub par networks, crap support, and atrocious customer service they will. Google's fiber plan scares them as evidenced by at&t's hissy fit after Google announced its Austin Texas fiber expansion.


You mean the US isn't about capitalism where the free market decides what survives? You mean that it's actually about large conglomerates bribing legislatures to prevent competition by blocking access to the market and thus consumer choice by excluding competitors?

Wow.
 
2013-04-22 09:02:42 PM
If I didn't like sports I would have already done away with cable, but with a 5 month old I can't go to the bars and watch the game.

But it's cool because I would have spent over a $100 every weekend at the bar, now I just spend $100 a month on directv
 
2013-04-22 09:15:23 PM
Turns out the Netflix Windows 8 app does 5.1 Dolby Digital + and higher bitrate video, so I decided to "upgrade" my HTPC just for that.

Wound up not being particularly painful, as everything's drivers worked (including my HDHomerun cablecard tuner).  Well, that, and Stardock's "Modern Mix" so I could make that app work in a window when I want it to and pin it to the taskbar so I never bother with the rest of "Modern"

/ don't care about the Start menu because I use the taskbar & toolbars and can make a toolbar point to C:\ProgramData\Microsoft\Windows\Start Menu\ if I really wanted it.
// and all the control panel stuff is available in File Explorer, or a right-click where the Start menu would be.
/// Power-off and Restart are easy to get at the Ctrl-Alt-Del screen.
 
2013-04-22 09:20:22 PM
Netflix is a service that requires an internet connection. Telecom companies provide that utility. (Cable, telephone and satellite companies).

How exactly is Netflix doing away with telecoms?
 
2013-04-22 09:44:39 PM

Mazzic518: Subby accidentally the whole thing?


Not seen Netflix's in house production series House of Cards?
 
2013-04-22 09:47:07 PM
I honestly didn't think I would be enjoying my Netflix streaming subscription so much. Because of it I'm able to watch and catch up so many TV shows and then tons of movies, excellent documentaries (Hooked on the ESPN 30 for 30 series). Got Amazon prime as well, though haven't used their video library that much but found that sometimes a movie I want to rent is a $1 or 2 away and the convenience of Roku is unbeatable. Been cable free for more than a year and not missing it a bit.  I dont watch sports much other than the odd NBA playoffs and NFL games which are streaming online a lot on official channels (NBC).

So yea Netflix isn't a bad deal at all.
 
2013-04-22 09:47:30 PM
"house of cards", I see what you did there. AWESOME Show
 
2013-04-22 09:48:12 PM
Subtard, that is my favorite Futurama quote and you farked it up royally.
*Kif level sigh*
I was thinking about it today.


On topic though, I worked for the 9th largest cable provider that was just bought by Time Warner Cable. I can assure you that both were/are thinking about ways of getting rid of cable. Cable TV is about like inkjet printers 10 years ago. Everyone knows there is no money in it long-term, and the ones that know it best are the providers.

And google is a bazillion miles behind in infrastructure. They're not a competitive threat, but they'll show how much everyone else is being screwed.

/Time Warner sucks
 
2013-04-22 09:53:33 PM

Target Builder: Mazzic518: Subby accidentally the whole thing?

Not seen Netflix's in house production series House of Cards?


Read the headline again. It's still missing a word, hence the accidentally the whole thing comment.
 
2013-04-22 09:58:05 PM
Google fiber can't come to Austin fast enough.

takemymoney.jpg
 
2013-04-22 10:00:58 PM
Works for me. Inexpensive monthly price, streaming without ads, wide range of selections (although it'd be nice if it were a bit wider), definitely worth the time.

Hulu? Not so much.
 
2013-04-22 10:02:11 PM

Jaws_Victim: When will fark stop tormenting me about the cancellation of futurama?


In the game of chess, you can never let your adversary see your pieces.
 
2013-04-22 10:14:39 PM

StopLurkListen: Netflix is a service that requires an internet connection. Telecom companies provide that utility. (Cable, telephone and satellite companies).

How exactly is Netflix doing away with telecoms?


Doing away with telecoms as the sole provider of shows & movies in the average home.  Keep it in scope here buddy, leave it to Google to nail the existing telecoms from the other side.
 
2013-04-22 10:15:36 PM

picturescrazy: Yep, and that's why I think Netflix and Google Fiber will be great friends. Two great tastes that taste great together.

/doctor said I needed more fiber in my diet
//why am I bleeding inside?


Google could buy them for pocket change. They should strongly consider it.
 
2013-04-22 10:33:12 PM

picturescrazy: Target Builder: Mazzic518: Subby accidentally the whole thing?

Not seen Netflix's in house production series House of Cards?

Read the headline again. It's still missing a word, hence the accidentally the whole thing comment.


:)
 
2013-04-22 10:38:00 PM
NewportBarGuy

picturescrazy: Yep, and that's why I think Netflix and Google Fiber will be great friends. Two great tastes that taste great together.

/doctor said I needed more fiber in my diet
//why am I bleeding inside?

Google could buy them for pocket change. They should strongly consider it.


Nah, they will just develop their own for cheaper. YouTube Gold account.
 
2013-04-22 10:51:39 PM

StopLurkListen: Netflix is a service that requires an internet connection. Telecom companies provide that utility. (Cable, telephone and satellite companies).

How exactly is Netflix doing away with telecoms?


THIS. How do it be happening?
 
2013-04-22 11:01:51 PM

picturescrazy: Yep, and that's why I think Netflix and Google Fiber will be great friends. Two great tastes that taste great together.


Google is an advertising company.  You will only be able to watch Netflix with ads streaming across the top and bottom of the screen.

/never quite understand why so many nerds believe that google has their interests at heart
 
2013-04-22 11:02:42 PM

NewportBarGuy: Google could buy them for pocket change. They should strongly consider it.


One word:  anti-trust
 
2013-04-22 11:08:07 PM

bionicjoe: Subtard, that is my favorite Futurama quote and you farked it up royally.
*Kif level sigh*
I was thinking about it today.


On topic though, I worked for the 9th largest cable provider that was just bought by Time Warner Cable. I can assure you that both were/are thinking about ways of getting rid of cable. Cable TV is about like inkjet printers 10 years ago. Everyone knows there is no money in it long-term, and the ones that know it best are the providers.

And google is a bazillion miles behind in infrastructure. They're not a competitive threat, but they'll show how much everyone else is being screwed.

/Time Warner sucks


Inshiate?
 
2013-04-22 11:12:52 PM

gingerjet: NewportBarGuy: Google could buy them for pocket change. They should strongly consider it.

One word:  anti-trust


To be honest, I don't think the government knows what the f*ck anti-trust even means anymore. You could get it through if they agreed to spin off YouTube or something. They might not even ask them to do that.

Random Anonymous Blackmail: Nah, they will just develop their own for cheaper. YouTube Gold account.


I think buying a business as well established as Netflix would reap them even more money than developing YouTube. Add in the support of their fiber service? You could have anti-trust issues, but the home entertainment/information game is so crowded. Everyone would have access to an alternative through Cox, Time Warner etc for the same services. Just one would be the better deal.

I have been waiting a long goddamned time for a la carte, and this might be the best way I can get it. I need these things!
 
2013-04-22 11:13:24 PM
well, if they're going to keep pumping out house of cards quality, then good. but if they're going to pump out this new hemlock grove level of quality... ehhhhhh not so much
 
2013-04-22 11:19:47 PM

tlchwi02: well, if they're going to keep pumping out house of cards quality, then good. but if they're going to pump out this new hemlock grove level of quality... ehhhhhh not so much


Arrested Development is coming in May and House of Cards has a season 2 in the works. They really are an amazing bang for the buck.
 
2013-04-22 11:22:48 PM
Keep sending me the discs, since you don't have 1080P and lossless audio on your streaming.
 
2013-04-22 11:27:55 PM

NewportBarGuy: tlchwi02: well, if they're going to keep pumping out house of cards quality, then good. but if they're going to pump out this new hemlock grove level of quality... ehhhhhh not so much

Arrested Development is coming in May and House of Cards has a season 2 in the works. They really are an amazing bang for the buck.


seen amazon prime's exclusive pilots yet?  Things are about to get interesting..
 
2013-04-22 11:34:22 PM

Mr Rogers is aroused: seen amazon prime's exclusive pilots yet? Things are about to get interesting..


Yeah, it was a festering bowl of dog snot. If they were trying for failure, they succeed!
 
2013-04-22 11:38:33 PM

Mr Rogers is aroused: NewportBarGuy: tlchwi02: well, if they're going to keep pumping out house of cards quality, then good. but if they're going to pump out this new hemlock grove level of quality... ehhhhhh not so much

Arrested Development is coming in May and House of Cards has a season 2 in the works. They really are an amazing bang for the buck.

seen amazon prime's exclusive pilots yet?  Things are about to get interesting..


I'm interested to see what's going to happen as more companies get involve in streaming television. We've already seen that things are moving towards more exclusive content (both original and repeat) since nobody wants to raise prices. With only three companies that's not a big deal, but what happens when that number moves to six or ten and people start needing five or six subscriptions to get the content they want?
 
2013-04-23 12:01:24 AM

rugman11: Mr Rogers is aroused: NewportBarGuy: tlchwi02: well, if they're going to keep pumping out house of cards quality, then good. but if they're going to pump out this new hemlock grove level of quality... ehhhhhh not so much

Arrested Development is coming in May and House of Cards has a season 2 in the works. They really are an amazing bang for the buck.

seen amazon prime's exclusive pilots yet?  Things are about to get interesting..

I'm interested to see what's going to happen as more companies get involve in streaming television. We've already seen that things are moving towards more exclusive content (both original and repeat) since nobody wants to raise prices. With only three companies that's not a big deal, but what happens when that number moves to six or ten and people start needing five or six subscriptions to get the content they want?


But of course they will have to raise prices - $8 a month can't be sustainable.  Especially as more and more folks cut the cord and cable becomes a sports delivery system.

/I'm sure I am not the only one willing to pay more for more content.
//Hell, content aside, I'd pay more for all three of them if they'd just fix their equally horrible interfaces and provide film buff-friendly search engines.
///I mean, Hulu has frickin' Criterion, but can I search by director?
 
2013-04-23 12:11:46 AM
But I thought when Netflix raised there prices a whole $4 that was going to be the end of them. At least that is what Fark told me.
 
2013-04-23 12:24:36 AM
Not my point at all. Netflix helps push the demand for more bandwidth for the average home while Google hopefully expands their fiber offerings to more markets since the cable companies are fighting this change tooth and nail at our expense.
 
kab
2013-04-23 12:31:02 AM

NewportBarGuy: Arrested Development is coming in May and House of Cards has a season 2 in the works. They really are an amazing bang for the buck.


Hemlock Grove is decent too, (but would be better if the rich kid had better scripting).  Not as good as HoC, but still worth a watch.
 
2013-04-23 12:55:13 AM
I got a couple months of free HBO, in the hopes that I'll get used to having it and subscribe.

Compared to Netflix, it's a bowl of dicks. And I don't even have a Netflix account. A pile of movies I don't care about and movies I've seen before. Sure, I haven't seen Forest Gump in a decade, but it's not worth whatever that subscription would've cost.

And I don't care about Game of Thrones.
 
2013-04-23 02:27:15 AM

gingerjet: NewportBarGuy: Google could buy them for pocket change. They should strongly consider it.

One word:  anti-trust


That can easily be side-stepped with a few paid-off legislatures.
 
2013-04-23 08:10:05 AM

NewportBarGuy: gingerjet: NewportBarGuy: Google could buy them for pocket change. They should strongly consider it.

One word:  anti-trust

To be honest, I don't think the government knows what the f*ck anti-trust even means anymore. You could get it through if they agreed to spin off YouTube or something. They might not even ask them to do that.

Random Anonymous Blackmail: Nah, they will just develop their own for cheaper. YouTube Gold account.

I think buying a business as well established as Netflix would reap them even more money than developing YouTube. Add in the support of their fiber service? You could have anti-trust issues, but the home entertainment/information game is so crowded. Everyone would have access to an alternative through Cox, Time Warner etc for the same services. Just one would be the better deal.

I have been waiting a long goddamned time for a la carte, and this might be the best way I can get it. I need these things!


I don't see how there could be anti-trust issues when their competitors are doing the exact same thing.  Best part about them (their competitors) is, they are literally monopolies in some areas.
 
2013-04-23 08:38:37 AM
I don't get why cable is so terrible. You pay for the value of the content either way.

Comcast video + internet cost

broadband internet and video package including DVR with most of the channels, AMC & HBO included for $119 a month.  The big plus is you get to watch new TV shows and sports.

If you try to approach the amount of content via online subscriptions except you can a 2-4 year time delay for content.

Comcast broadband plus online subscriptions per month
Broadband $59.00
Netflix $7.99
Hulu plus $7.99
Amazon Prime $7.00
some major league sports subscription, MLB for example is $19.99
 
2013-04-23 08:41:24 AM
Red envelopes aren't going away any time soon.  I have at least five rural friends (in-laws, my boss, etc) whose only internet is via 3G/4G stick with 5GB caps.  In fact, in many cases, the local telephone company has filed a deregulation request that would allow them to abandon even classic landline phone service to those rural areas.

*EVERYBODY* in the boonies gets Netflix red envelopes.

It's not a massive market compared to Netflix overall.  But, it's a big and profitable enough market that, even if they spun it off (like they tried a couple years ago), people will still be wanting discs by mail.
 
2013-04-23 09:01:33 AM

sauwar: broadband internet and video package including DVR with most of the channels, AMC & HBO included for $119 a month.  The big plus is you get to watch new TV shows and sports.


I don't know about your Comcast.  But, here at least 'most channels', not including HBO, mid-range internet, and 1 DVR runs you $192 a month after fees and taxes.  Yeah.. na-ganna-happen.

I don't know many people who have all three of those paid services.  We have Amazon Prime, and that's the only one.  Unfortunately internet is almost $70 alone after the "you don't have cable TV" surcharge, but $77 a month is a whole, whole lot less.
 
2013-04-23 10:22:16 AM
Here is a copy of my bill. I live in metro Atlanta.  I get most everything online including HBO, Starz And the Xfinity online service with AMC and FX and stuff like that.  I dont know why you pay almost 2x as much as I do.

i.imgur.com
 
2013-04-23 10:33:42 AM

sauwar: Here is a copy of my bill. I live in metro Atlanta.  I get most everything online including HBO, Starz And the Xfinity online service with AMC and FX and stuff like that.  I dont know why you pay almost 2x as much as I do.

[i.imgur.com image 835x667]


Simple answer:  Because they can get away with it due to a lack of competition, something that is finally being forced upon them via things like Netflix and google's fiber services.  I know a business's purpose is to generate as much income as they can so one can't really blame them, however its about time these guys got some competition that forces more reasonable prices.
 
2013-04-23 11:19:06 AM

sauwar: Here is a copy of my bill. I live in metro Atlanta.  I get most everything online including HBO, Starz And the Xfinity online service with AMC and FX and stuff like that.  I dont know why you pay almost 2x as much as I do.

[i.imgur.com image 835x667]


For internet, cable with HD, extended channels and HBO, in Philly you pay $150-180/mos
 
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