Even though Netflix’s arch rival Blockbuster has filed for bankruptcy protection, the victory lap will have to wait. The company that filled US mailboxes with red envelopes containing DVDs is already fighting the next war.
The main battlefront has shifted online, where consumers are streaming movies and television, and Netflix faces a number of well-financed and innovative companies like Apple, Amazon and Google, as well as cable TV providers. This time, the battle will not be won by the company that perfects the logistics of moving DVDs, but by whoever can best negotiate with Hollywood studios.
“They are fighting a much different battle than Blockbuster,” said Jim Lanzone, chief executive of Clicker, an online TV guide. “Today’s war is for Internet television, and Blockbuster was never really relevant to Internet television.”
Netflix, based in Los Gatos, California, had an early lead in online streaming with its subscription service, Watch Instantly, where customers can watch movies or TV shows on a computer, television, iPad or iPhone. (Software for Android smartphones is coming.)
Netflix has raced to become ubiquitous. In addition to PCs, more than 100 types of devices can stream Netflix movies to a TV, including game consoles and Internet TV set-top boxes like Roku and Apple TV. The company says 61 percent of its 15 million subscribers streamed movies in the second quarter.
The weakness of the streaming service is movie selection. Netflix’s catalog of 20,000 streaming movies does not include many recent Hollywood hits because the company has been unable to negotiate rights from all the studios. Netflix has about five times as many titles in its DVD catalog compared with online.
Many of the company’s studio deals require it to delay making titles available — either on DVD or online — until they have been on store shelves for 28 days. For example, Robin Hood, starring Russell Crowe, is available to stream on Amazon but will not be available on Netflix until Oct. 19. Hulu Plus has the current season of The Office, while the most recent episodes on Netflix are from last season.
The industry is still very young and many companies are experimenting with business models and expanding their video libraries. The advantage of streaming online is that it requires less infrastructure and therefore has lower barriers to entry.
“Streaming is a much more competitive environment, and Netflix’s competitors have the money it takes,” said John Blackledge, an analyst with Credit Suisse.
Netflix declined to comment for this article, but a new streaming service it began last week in Canada may be a sign of where the company is headed. Netflix is selling a subscription for online streaming only, with no DVDs.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source