Today's Top Stories The rising level of competition for original online video series is a benefit to premium video content owners, creators and consumers, Reed Hastings, Netflix (Nasdaq: NFLX) CEO, told investors during the company's quarterly earnings presentation. The event was webcast over YouTube, a break from the standard practice of publicly-traded companies holding a teleconference with stock analysts. Netflix isn't alone among online video distributors looking for high-quality TV shows. In its quarterly letter to shareholders, the company noted that Amazon (Nasdaq: AMZN) and Hulu have both been active in the market as well. "There's definitely some competition in the marketplace, which does raise the prices," said Ted Sarandos, Netflix's chief content officer. But as Netflix negotiates more and more deals, it is learning what prices it's willing and not willing to pay, Sarandos said. "One thing that's nice about that is you get to know what the walk-away prices are," he said. "And we've been comfortable with the prices we've walked away from." Hastings elaborated: "It's great for content owners and great for creators that there's this renaissance of serialized TV. There are so many great stories to be told, it's exciting." And if more distributors are bidding on individual show, that will benefit Netflix, he added. "If prices are going to go up, we as the one of the major scale players have an advantage," Hastings said. And as Netflix invests more in original online programming, it will increasingly seek ownership stakes in the content it licenses, Hastings and Sarandos said. "The more confidence we build, the more likely we'll be to take more of an ownership stake and build out that infrastructure," Sarandos said. Hastings said Netflix's approach to owning the programming is similar to the early days of HBO. "It's natural for us to grow into that," he said. For more:
- watch the earnings webcast
- read Netflix's letter to shareholders Commentary: Betting on original TV online Related articles:
Netflix in talks for season 5 of 'Arrested Development'
Netflix adds 'New Girl' from Fox Read more about: NFLX, Hulu, AMZN
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When viewers sit down to watch a long program online, they overwhelmingly choose a new or old TV show rather than a movie, according to research group GfK. The users of online video sites such as Netflix (Nasdaq: NFLX) and Amazon Prime (Nasdaq: AMZN) surveyed by GfK said they typically dial up TV programs. Episodic shows such as "Star Trek," "Breaking Bad" and "Mad Men" were found to be the most popular programs among the survey's respondents. "We see that, contrary to broadcast TV's 'mass' audience model, streaming services generate episodic, niche viewing," said David Tice, senior vice president at GfK. That could be good news for TV production companies and networks seeking to tap online video distributors as a growing affiliate revenue stream. The more viewers demand TV shows online, the more distributors may be willing to pay to license it. Still, while TV shows generate a large portion of online viewing, Netflix has said it plans to invest in other forms of programming such as stand up comedy and original documentary films. Its CEO Reed Hastings told investors this week that the company's investments in original programming could expand into those categories. For more:
- MediaPost had this story
- WorldScreen had this story
- watch the Netflix webcast Related articles:
Netflix adds 'New Girl' from Fox
Netflix gets rights to new DreamWorks Animation Shows Read more about: Netflix, Amazon
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YouTube channel partners who have begun offering paid subscriptions to their content have yet to see a huge influx of paying viewers, Variety reported after talking with some of those partners. But those involved largely say they're willing to wait and see if activity improves. The companies aren't abandoning their subscription strategies, but early results are not expanding as hoped, National Geographic Society Vice President of Global Strategy Adam Sutherland told Variety. "We had hoped to set the world on fire." YouTube told Variety that the paid channels program is still in its earliest stages. "Just as the Partner Program empowered creators to take their channels to the next level, we look forward to seeing how creators bring new content to their fan communities on YouTube," the company said. The service is still young: YouTube introduced subscriptions on the site in mid May. And some YouTube channels which began charging subscription fees are pleased with the results. According to Variety, Sesame Workshop, which produces the program "Sesame Street," is happy with its performance so far. For more:
- Variety had this story
- The Guardian had this story Related article:
Some YouTube channels start charging viewers Read more about: YouTube, subscription review
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NimbleTV was introduced last year and promised subscribers around the country they could buy online access to certain pay-TV providers' packages of subscription television no matter where they were. But last week, one of the pay-TV providers seems to have stopped cooperating. Complaints about the lack of service started hitting NimbleTV's Facebook page last week. Word spread, first through the FTABlog, then AllThingsD, that Dish Network (Nasdaq: DISH) had cut off service to NimbleTV's subscribers. "NimbleTV is not an authorized DISH retailer, and is not authorized by DISH to market or promote our services," Dish told Multichannel News. According to AllThingsD, NimbleTV is working around the clock to restore service to its subscribers and is offering them refunds. "While we have been upfront with our customers that NimbleTV has no direct relationship with any TV provider, Dish did not want our Web site to mislead others into thinking that we might have a direct affiliation with Dish," NimbleTV's CEO Anand Subramanian told AllThingsD. In an email to FierceOnlineVideo, a NimbleTV spokesman said the company is doing everything it can to have the service back up as soon as possible. Moreover, it is "expanding the business and will soon be adding new provider options in the U.S. and abroad." NimbleTV seems to operate on a premise that's similar to that of Aereo: After a viewer has access to TV programming, it can do with it what it chooses. NimbleTV offers that access and the remote DVR and streaming capabilities that let subscribers record shows and watch them on certain Internet-connected devices. For more:
- FTABlog had this report
- All Things D had this story
- Multichannel News had this story Related articles:
NimbleTV launches 'game changing' TV platform
NimbleTV begins streaming OTT TV content to mobile devices
NimbleTV pitches new TV Everywhere solution Read more about: copyright
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Aereo said it will expand in Utah next month. The company, which sells an online subscription to local over-the-air broadcast TV stations, has been rolling out its service market by market despite several ongoing legal fights. Utah, where Aereo plans to begin offering service Aug. 19, represents the westernmost region Aereo has set plans to launch so far. There may be a legal reason for that: Further west, in California, a court case over the legality of Aereo copycat FilmOn has resulted in rulings that are not favorable to Aereo's plans. FilmOn, which used to call itself Aereokiller, was blocked by a federal judge from operating while a trial over its legality plays out. The Ninth U.S. Circuit Court of Appeals has scheduled a hearing on that matter at the end of August. If the appeals court upholds the injunction against FilmOn, it could prevent Aereo from expanding in the states covered by the Ninth Circuit. Utah is part of the 10th U.S. Circuit Appeals Court. Aereo first launched in New York City, and its case in the Southern District of N.Y.'s Federal Courthouse is the furthest along. But as it expands, other parties have sued in new venues as well. Late last week, Aereo asked a federal judge in Boston to transfer a challenge brought by Hearst's TV station group to New York. "Because Hearst's copyright claims are virtually identical to the pending cases in the Southern District of New York... there is no reason to justify a separate, additional and duplicative action in Boston," Aereo's attorneys argued in a brief filed with that court last week. For more:
- read the Aereo press release
- read Aereo's arguments to transfer Hearst's case to New York (.pdf) Related articles:
Aereo might be one step close to Supreme Court review
Aereo sued in Boston Read more about: copyright, Aereo
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Hulu's failed auction and the future of online video M&A
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