Category Archives: movies

On The Netflix/Qwikster Thing …

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As most of the Internet has heard by now, Netflix is changing its model again, splitting their services into two different entities. Netflix will continue as the streaming service and the DVD rental service (with video games added) will be turned into another site called Qwikster.

*pause for laughter*

Now most everyone has already reacted and voiced opinions of opposition and sentiments of “what the frak is Netflix thinking!?” The Netflix stock is reacting as expected, fluctuating so far but ultimately down.

What I’ve seen from most reaction is people incensed that Netflix isn’t thinking about them, the individual U.S. customer that liked having both options of DVD rental and streaming from one site. And, they’re right. What they fail to understand is that Netflix is not the same company it used to be, and that since the beginning of this debacle that started with the price hike, has not pretended to care (even the email from CEO Reed Hastings seems more like a scolding than an apology) about what U.S. customers want. I emphasize U.S. because I believe that their endgame is making the streaming revenue from outside the U.S. their primary income stream.

Now mind you this assessment and opinion comes from no expertise in business, just a single person’s opinion based on the evidence present.

Netflix recently announced streaming expansion into 43 countries, many of which probably have no competition in this market. The overhead costs for the DVD rental portion of Netflix outweighs the potential benefits. What I think is that they believe offering streaming in so many countries that have limited or zero competition that it will offset the immediate and continued loss of U.S. customers. What’s considered a “limited streaming library” in the U.S. is probably more than what people in Latin America and many other countries being considered currently have any access to. While I’m sure they can broker more deals for more content over the next few years, Netflix could make gobs of money simply offering its current library worldwide.

What I think people need to realize is that Netflix is not the company it once was. It is not the company that revolutionized movie watching at home. It is not a company that is interested in leading a paradigm shift against the movie industry to change the way the studio system works. It is not a company that is interested in the needs and wants of the customer (they canceled a contest to make improvements to their recommendation engine under the auspices of “privacy concerns”).

They are now an Internet content provider distributor interested in making as much money as possible. And yes, all companies are in the business of making money, but I think Netflix has fundamentally changed from its original mission statement to what it is today — a company that wants to make its investors a lot of cash and then get out.

I think their plan is two-fold:

1) Shuttle off their DVD rental program, an ultimately money losing endeavor at this point, to a forgettable company name that is probably bound to fail. They want this. They want the DVD rental part of their business to fade away until they no longer need to spend money on it and can justify ending it. They will cite “market forces” and then continue to focus squarely on expanding their worldwide streaming offering. Less overhead = more money.

2) Focus on streaming to as many countries as possible for as long as possible while limiting expansion of the library. They will milk that huge profit margin for as long as possible until they want to sell the company and make it a problem someone else needs to solve. Spending less on distribution licenses while making money off old content worldwide = more money.

Again, this is just my opinion and I have no more information than anyone else reading the news.

The point is, Netflix CEO Reed Hastings created something that was a game changer at the time and it made him and the current Netflix board of investors a lot of money. It also created an instantly recognizable brand that many millions have become loyal to. The man is not an idiot, he is simply changing the game again — one where he and his investors are the winners and the customers, the Netflix name and its brand equity are the losers.

‘Toronto Star’ lays off entire Web staff

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Hat tip: Danny Sanchez

In a huge purge Torstar Corp., owners of Canada’s largest-circulation newspaper, the Toronto Star, is laying off 160 people, including the entire 10-person Web team. This comes as a shock during a time where one would think the Web team might be the safest place to be (at least I’m hoping so, *gulp*).

Most of the job cuts, taken through severance packages, were already expected, but laying off the 10-person Internet staff came as a surprise, said Maureen Dawson, an official with the Communications, Energy and Paperworkers Union of Canada.

“Their message to the world is that they’re all dedicated to the Internet, but then they lay off the whole department,” she told The Canadian Press.

“The Star has said they would tell us in the coming weeks where the (Internet) work would go. We have an idea where one or two of the positions would go – but not all of it.”

“I don’t think it’s clear where it’s going for them either.”

I’m not sure if Torstar Corp. knows it or not, but Google hasn’t created a Web product just yet that eliminates the need for a Web staff. They might want to keep around a person or two. You know, someone that at least knows HTML or something. More:

But some industry critics suggested that the newspaper would try to shuffle out its older workers, and hire younger and cheaper workers, rather than train all of the veteran staff on new technology like online video.

“We see this trend of seeking to get the older employees out and bringing in new employees,” said Lise Lareau, the national president of the Canadian Media Guild, which does not represent the Star.

“Training becomes an issue. There’s ways of addressing this other than by (voluntarily laying off) the older staff and bringing in newer staff.”

Wait a minute, so there’s openings in Toronto. Robin, to the Canadian consulate, passport at the ready!

50 greatest comedy sketches of all time

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One of the few movie critics whose opinion I trust, Nich Schager, points us to IFC’s collection of the ’50 Greatest Comedy Sketches of All Time.’ Below is number eighteen:



This isn’t particularly journalism related, but I point this out for two reasons.

One, it’s damn hilarious and worth some time and a walk down memory lane. The collection includes genius bits spanning over 50 years of sketch comedy with gems like Monty Python’s ‘Spanish Inquisition’ to SNL’s 1978 ‘Olympia Restaurant’ sketch which had John Belushi spouting, “Cheezborger! Cheezborger!”

The second reason I point this out is that it is a fine example of a sort of Journalism 2.0. Granted, it’s movie news but it is still a relevant point. Not only can you read the snippets about each clip, written by various critics and movie buffs culled from all points of the cinematic spectrum, but you can watch each and every clip thanks to the advent of YouTube and embedded movie players. This adds such a rich layer to what IFC, and in the future other journalists, will be able to do with the advances in Web techology.

The article may have worked in print, but the way they presented here just makes sense. Think about all of the times you’ve read these types of ’50 greatest of all time…’ articles but couldn’t for the life you remember what clip, movie or song the article was talking about.

Yeah, those times are over. Stuff like this is just the tip of the iceberg, to use the cliché. Web 2.0 rules!

Oh and of course #1, with a bullet, is Monty Python’s ‘Dead Parrot. ‘ If you’ve never seen it, here it is for you. Swallow any food you are chewing, don’t drink anything and watch.