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Format Wars! Laser, Go!

If you can understand this, you’re a better man than I.

In order to combat Netflix and On Demand from Comcast, they initiated the no-late fees program, and now their playing up their video game library, something Netflix doesn’t have, in order to gain a competitive edge.

The program is called Game Rush, and you can find the details in this Video Business Online article.

“I think what we said is we wouldn’t be investing any further capital on Game Rush in 2005, but we would be making sure we had the right consumer offering to hit the market running in 2006,” Shepherd said. “In 2006, we’ll start spending capital again.”

In business, you’re either growing, or you’re dying. There ain’t no third direction. And Blockbuster is dying. Granted, they’re still huge, but they’re dying.

This report from hackingnetlix.com reveals leaked screenshots of a possible Netflix download service.

We knew Netflix has had this in the works for a while, but now it seems that they are very close to offering a download service. This could be a huge advance in the download rental service. Stay tuned here for more details as they develop.

Another full article at Red Herring.

You all know those bright red Netflix envelopes, proof that a mailer can be top tier ad space. Well, Netflix has announced that it will be sharing that ad space, or, more specifically, selling it.

Article by VideoBusiness.com

JULY 11 | Netflix will give “relevant” advertisers access to its 3 million customers through increased advertising opportunities on its DVD mailers, Web site and through direct e-mails to subscribers, the company said Monday.

Netflix named Peggy Fry VP advertising sales to head up the new initiative. Fry, who held positions with America Online and film production company Smashing Entertainment, will be based in the company’s Beverly Hills, Calif., office.

“Netflix’s large and growing subscriber base offers a strong advertising platform, particularly for entertainment and other consumer-oriented marketers,” Fry said. “We’ll work with advertisers to deliver messages that are both relevant and interesting and add value to the Netflix customer experience.”

Chief financial officer Barry McCarthy said during a company conference call in May that Netflix was considering selling advertising space on its site and mailers as a way to generate additional income.

The topic of new DVD formats was patently avoided at a recent home entertainment conference, the New York Times reports. The topic that was not adressed is the choice between emerging technologies: Blue-ray and HD DVD formats.

While the Blue-ray format allows for a lot more data and special features packed onto every DVD, the HD format is a more simple upgrading of existing technology (it’s cheaper).

The various studios (Sony and Disney backing Blue-ray, Paramount, Universal and Warner backing HD, the rest undecided) have staked their reputations on the new formats, not to mention a lot of money, turning the debate into a political quagmire, not just a monetary one.

In the near future, one of these two technologies will become obsolete, a’la the Betamax machine, and tens of millions of dollars in sales hang in the balance of these negotiations.

When the moderator of the home entertainment conference did bring up the topic, “Before anyone could answer, Thomas Lesinski, president of home entertainment at Paramount Pictures, jumped in and said it would not benefit the studios to discuss the issue in public while behind-the-scenes negotiations were going on.”

Full NYT article here.

…bringing a whole new meaning to straight-to-video. Tim Robbins’s Embedded as well as Hal Hartley’s The Girl From Monday have made exclusive deals with Netflix regarding a DVD release. This could be a whole new avenue for independant film makers to reach their audiences, since most film distributors are not usually willing to pay for a costly theatrical release.

Full article at Video Business Online.

According to this Video Business Online report, Hastings and other Netflix officers got a huge salary increase on tuesday.

“JULY 6 | Netflix dramatically lifted the salaries of CEO Reed Hastings and other top executives, according to a Securities and Exchange Commission filing on Tuesday.

Hastings, who made $136,134 last year, will earn a salary of $500,000 this year plus a monthly stock option allowance of $83,333, according to the filing. The increase begins July 1.”

Complete article here.

A production company owned by Freeman is launcing a new service in the near future that allows downloads of major motion pictures on the day of their theatrical release. Freeman says the move is a reaction to piracy, bootleg DVDs, and, most importantly, providing a service that will be benneficial to movie consumers. Full New York Times article here.

Update: Intel backs Freeman, lending more credibillity to the venture.

Stupid is as stupid does.