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Netflix planning multiple-stream accounts

Netflix has announced plans for a new subscription plan for multi-user households. Set to be available later this year, the new plans will allow streams of content to multiple devices within the house.

As Netflix has become more and more ubiquitous, more multi-user homes have been subscribing, causing headaches all around. Families have had to purchase hybrid Blu-ray Discs in order to provide individual user account access.

Personally, I have a stream on my PlayStation 3 and one on my MacBook simultaneously. It’s only an issue with two non-browser devices.

This isn’t a new concept for Netflix. They have offered multiple DVD queues so my wife and I could have separate queues. It seems like a no-brainer to just provide a user setting.

But it’s not so simple. The new plans will have new pricing structures. So if there’s one thing we know for sure, it’s Netflix still doesn’t care about the customer.

Internet connected TVs now in 38% of households

We have previously talked about replacing cable or satellite television with internet streaming on-access video. While the majority of households aren’t ready to replace their traditional television service, new research from the Leightman Research Group has found that 38% of households are now streaming video to their TV via the internet. This is up from 24% just two years ago.

The most commonly used device for video streaming is a video game system, totaling 28% of households. (That’s how I deliver internet video to my TV.) Only 1% of households use Roku or Apple TV, while 4% use internet-capable TVs.

Netflix is far-and-away the leader in streaming video, with 35% of Netflix subscribers streaming video from the Internet weekly – totaling 16% of all adults, compared to 5% weekly use among all non-Netflix subscribers. Two year ago, only 4% of adults used Netflix’s Watch Instantly.

So is America ready to cut their cable? Not quite. Only 13% of Netflix subscribers would consider cancelling their TV provider, which is down from 21% last year.

Have you cancelled your television provider?

I have cancelled my provider. The reasons are varied, but came mainly through life changes in the form of three preschool-aged children. I don’t have time to watch very much television anymore, so it was a waste of money to continue paying for a service I don’t use. And the shows I enjoy watching the most are available on Hulu, Amazon or Netflix, so I can watch on my computer or through my PlayStation 3.

I haven’t felt like I’ve missed out on current TV programs at all. I’ve kept up with all the new episodes of the shows I love: House, White Collar, Fringe, and 30 Rock are all on Hulu. Mad Men and The Walking Dead are available on Amazon for a charge, but combined are much less than a cable subscription. Netflix provides me with past shows I’ve missed further out, and more movies than I can shake a stick at so I can’t really complain about the lack of choices. Generally, new releases are something I want to see in the theater anyway, and if they’re not I don’t need to watch them right away.

But the biggest advantage I’ve had using Netflix instead of cable is for the children. Netflix has a children’s menu that allows my kids to pick which shows they want to watch, and there are no commercials and they don’t have to tune in on the top of the hour. They’re so spoiled in this regard that when watching normal broadcast TV they get upset when a commercial breaks in, and they start asking to watch their show.

As far as live events, I’m not much of a sports guy, but I do watch the occasional football or soccer game over-the-air with rabbit ears.

Amazon finalizes deal with Viacom

Amazon.com announced a new deal with Viacom to bring thousands of new titles to Prime Instant Video. Amazon already had deals with CBS, Fox, Disney-ABC, PBS, NBC, Sony and Warner Bros. Their new library now consists of over 15,000 titles.

Viacom is the parent company of MTV, Nickelodeon, Comedy Central, TV Land and VH1. These cable television channels provide popular programming such as Dora the Explorer, Yo Gabba Gabba, iCarly, Chappelle’s Show, Jersey Shore, The Daily Show with Jon Stewart and The Colbert Report.

Prime Instant Video is included with the $79 per year Amazon Prime membership, which also provides free two-day shipping on Prime items, and free access to books on Kindle.

Amazon is one of the leading video streaming services, with access from select TVs, set-top boxes (like Roku), Blu-ray Disc players, Kindle Fire, Mac and PC.

Verizon and Redbox take aim at Netflix

Two companies who derive much of their public image from the color red are attempting to cut into a third company known for their red envelope. Verizon and Redbox are teaming up to compete head to head with Netflix in the video rental market.

This all makes sense with all of the negative reaction Netflix has taken lately. Why not offer an alternative?

Redbox, which is operated by Coinstar, recently purchased the DVD kiosks from their leading competitor NCR Corp., who mostly operates their kiosks under the Blockbuster Video brand. Meanwhile, Verizon has been edging into the cable and satellite TV markets with their FiOS service. The competitors, Comcast, Time Warner, AT&T, DirecTV and Dish Network have all pushed out video-on-demand services to deliver a wide range of content instantly. With the Redbox acquisition leading to the largest network of rental kiosks, Verizon is seeking to gain as much leverage possible to compete in this growing market segment.

The plan is vague, but they’re claiming a $6 per month subscription for 1 DVD and instant movie streaming, which bests a comparable Netflix offering at $15.98 by more than 50%. Of course Verizon was squeamish on the pricing details, just claiming to seek “right pricing.”

With an initial plan of just $30 million, it’s not clear how their content acquisition will compare with Netflix who spends $1 billion per year on content.

One thing that is certain: we’ll be seeing a lot more red.

Bad news: Netflix burdened with longer DVD window

As if Netflix hasn’t had enough bad news recently, they’re now telling us Warner Bros. has extended the rental window from 28-days to 56-days. This means, instead of waiting a month to rent a new DVD or Blu-ray Disc, you now have to wait almost two months.

Warner Bros., along with many other Hollywood studios, had instituted a 28-day sales-only window for newly released DVDs and Blu-ray Discs in order to encourage disc-sales. Clearly the 28-day window was an homage to Danny Boyle, because sales of movies have not been bolstered by such a stupid plan.

It’s not clear why Netflix is entitled to such a long window as brick-and-mortar renters like Blockbuster (if they’re still into that sort of thing), and Redbox now get the titles a month earlier. Not that this was any different than before, because Netflix usually had long-waiting times for newly released movies anyway due to their demand. From reading the press release, it seems like they might be doing this to give UltraViolet and the Warner-owned Flixster an advantage over Netflix.

Read the press release after the break.
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Blockbuster teams up with Dish Network

Earlier this month, Dish Network and Blockbuster released Blockbuster Movie Pass. This service allows for streaming movies and TV shows directly through the DishOnline.com. Additionally, DVDs and games will be delivered through the mail.

If you have Dish Network, Blockbuster Movie Pass will cost an additional $10 per month. This includes unlimited streaming, and one-disc-at-a-time delivery. The comparable Netflix service will cost $15.98. Upgrades with two and three discs at a time will be $15 and $20 respectively.

Blockbuster claims the available movies and TV shows are over 130,000, with 34,000 available for streaming. This is compared to Netflix with 31,700 streaming titles, and over 100,000 DVDs.

One advantage Blockbuster always had over Netflix was the ability to return movies to a Blockbuster store, where you pick up a new rental while your next by-mail delivery immediately ships. Blockbuster also rents games, which Netflix hasn’t gotten into yet.

Dish Network purchased Blockbuster out of bankruptcy earlier this year for $320 million.

Qwikster is dead on arrival

Netflix has a case of Dr. Jekyll and Mr. Hyde. Less than a month after Netflix CEO Reed Hastings announced DVD-by-mail would be spun off to form Qwikster, another email is sent out saying Qwikster will not happen after all.

It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs.

This means no change: one website, one account, one password … in other words, no Qwikster.

What a horrible year for Netflix PR. They’re flailing to find footing with their established, loyal customer base.