Today's Top Stories Last week when reports surfaced that the NFL might be courting online video distributors with a package of Thursday-night games, Netflix (Nasdaq: NFLX) quickly attracted attention as a potential buyer for such rights. But the company insists it's not interested in distributing live sports events. During the company's Q3 earnings video conference, JPMorgan analyst Doug Anmuth asked whether Netflix might bid on such rights as a way to entice more people to try its service. "We're still not interested in sports," Ted Sarandos, Netflix's chief content officer, said. What Netflix is good at, and where it improves the traditional TV experience, is on-demand viewing. "I don't think that brings much to sports viewing, which is primarily a linear experience," Sarandos said. Instead, the focus at Netflix remains on developing exclusive TV programming along the lines of its "House of Cards" and "Orange is the New Black" series. in 2014, Netflix plans to double its investment in original content while still keeping it less than 10 percent of its overall global content costs, it said in a letter to shareholders. That figure includes spending on shows the company has already announced and on some new projects it still has in the pipeline, Sarandos said. "We're trying to move as quickly as we can" on originals, Sarandos said during the video conference. "We're trying to optimize for high-quality shows. So they take a long time to discovery, they take a little bit longer to build and the delivery time becomes a little more elastic, he said. But Netflix could spend an even higher percentage of its budget on original programming, he said, citing HBO as an example. "About 40 percent of their spending is on original programming. So there is a big gap between where we are and where we could be." For more:
- watch the earnings video conference here
- read the letter to shareholders here For more:
NFL reportedly shopping more Thursday night games to online video distributors
Netflix makes its next exclusive bet
Netflix to boost spending on originals, updates 'Long Term View' Read more about: NFLX
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Search Google (Nasdaq: GOOG) for "Hulu CEO" and you'll still find Jason Kilar's mug shot. Kilar announced his departure from the Fox-NBC-Disney (NYSE: DIS) joint venture in January, but it took nearly 10 months for Hulu's owners to name a full-time successor. The wait ended last week when Mike Hopkins, a Hulu board member and Fox executive, won the job, taking over for acting CEO Andy Forssell. In the intervening months, Hulu's owners held an auction for the site but ultimately turned down all bids. Disney and Fox then pledged to invest $750 million into the project. In a letter to staff posted to Hulu's blog Thursday, Hopkins said Hulu is on track to bring in close to $1 billion in revenue this year. "Through all the recent uncertainty, not only have you kept this business together, but you've continued to deliver on every key performance metric," Hopkins wrote in the letter. For more:
- read Hopkins' letter here
- ABC News had this report Related articles:
Hulu loses another executive as CEO candidates surface
Acting Hulu CEO sees potential ad-free service
Hulu licenses BBC shows Read more about: Hulu, Jason Kilar
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Reports that Apple (Nasdaq: AAPL) will manufacture and sell a TV set will not die. The latest comes from Tokyo-based Masahiko Ishino, an analyst at Advanced Research Japan Co., who says he expects Apple to start selling ultra-HD TV sets in late 2014. The sets will probably feature 55-inch and 65-inch frameless designs, Ishino told Bloomberg News. He also told the Wall Street Journal the sets would probably sell for $1,500 to $2,500. For years, Apple has elicited expectations that it would push deeper into the TV market. It already sells a popular streaming video device--the Apple TV--and digital movies and TV shows through its iTunes store. But it has disappointed expectations of an Apple TV set. Those hopes were again left unmet Tuesday when Apple announced new versions of iPad, MacBook and MacBook Pro devices at an event in San Francisco--but no plans for an Apple TV set. For more:
- Bloomberg News had this report
- the Wall Street Journal had this report
- CNET had this report Related articles:
Apple TV updated pulled, then reapplied
No Apple TV update at iPhone event
Apple said to acquire Matcha.tv Read more about: Apple, iTunes
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YouTube is opening its subscription channel option to more contributors, it said on its official YouTube Creators blog. The Google-owned (Nasdaq: GOOG) site also added Mexico to the list of countries where subscriptions are available. Additionally, visitors to YouTube's mobile site can now subscribe directly from the site, it said. The move follows YouTube's introduction of a paid-channel program with a select group of content partners in May. Now certain content contributors with at least 10,000 subscriber can begin charging for access to their channels. Prices start at $1 a month. "We look forward to seeing how you use this additional business model to build your audience on YouTube," the YouTube team wrote on the Creators blog. For more:
- read the blog post here
- GigaOM had this story Related articles:
YouTube revenue share sparks debate among content creators
No overnight success seen for YouTube subscription channels
Some YouTube channels start charging viewers Read more about: YouTube, Google
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Aereo said it will begin selling online access to DVRs that can record local TV stations in Detroit on Oct. 28. The company's next market move could also mark its entry into new legal territory--the U.S. Court of Appeals for the Sixth Circuit, which handles appeals from all federal cases filed in Michigan. Aereo (or its less famous rival FilmOn X) has been sued in federal court in nearly every market where it has begun operating. The service and copyright infringement lawsuits started in New York, where federal appeals are heard by the Second Circuit. That appeals court declined to block Aereo from operating while a trial in a lower federal court plays out. More recently, broadcasters have sued in lower federal courts in territory covered by the Tenth and First Circuits, while the Ninth Circuit could rule on an issue related to FilmOn X's case any day. Detroit isn't the only Sixth-Circuit market on Aereo's roadmap. It has also identified Cincinnati and Columbus as targets for expansion. It's not clear whether broadcasters will continue to sue Aereo in each market it enters. A group of broadcasters and networks asked the U.S. Supreme Court to overturn the Second Circuit's decision not to block Aereo in New York. A ruling from the U.S. Supreme Court could alter the legal landscape. For more:
- read the Aereo press release here Related articles:
Broadcasters ask Supreme Court to review Aereo injunction
Aereo sued in Utah
Aereo sets Android Launch date as another injunction request is denied Read more about: copyright, Aereo
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