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YouTube looking to enter rental movies on demand business, says WSJ

Sounds like Google has found the best way to monetize YouTube yet, and it puts itself in a pretty competitive spot versus the likes of Netflix, Amazon VOD, and Apple's iTunes movie store. According to Wall Street Journal, the company's currently in talks with Lions Gate, Sony, and Warner Bros. studios over putting their content on YouTube for a rental fee, likely $3.99 -- the same price as Apple's SD movie rentals. Even more interesting is talk of getting some titles online day and date with the DVD releases. Some options could still be free with advertising, but as for paid content, Google's enticing studios over to their way of thinking with a proposed minimum fee of "just under $3 per title viewed." A three-month beta testing is apparently scheduled to begin soon among 10,000 Google employees, and after that? Well, here's hoping the G-Man manages to sign on some more studios and offer us the films in streaming HD.

Netflix Blu-ray movies showing up cracked and unplayable?


That's the word, with a small but vocal group of subscribers claiming their discs are repeatedly arriving with small cracks on their outer edges. It's unclear what might be to blame, even with the extra coating to prevent scratches on Blu-ray, they could still be susceptible to automated mail processing machines, manufacturing defects or perhaps a spontaneous game of mail Frisbee. The Mars Box blog experienced this issue back in '07 with the disc pictured above, but in the last few months reports seem to be picking up again. It's really too bad those extra costs can't buy tougher packaging like the cardboard slips GameFly uses, but Netflix told Wired the problem is "infinitesimally small" and changing shipping wouldn't be cost effective. We know plenty of you rent your discs, let us know, have you been afflicted?

[Via Hacking Netflix]

Read - The Mars Box
Read - Wired
Read - AVS Forum

Blockbuster voices "substantial doubt" about ability to survive


As depressing as it is to see an American icon come this close to collapse, is it really any surprise? While the world kept turning, Netflix kept reinventing itself and movies found their way onto the internets (legally), Blockbuster sat still... and that's putting things nicely. Sure, it tried the whole movie set-top-box thing, but no on will argue that it went about things the wrong way. In a recent SEC filing, the company made perfectly clear that there was serious risk that it wouldn't be able to refinance its crushing debt load in order to stay afloat for a wee bit longer; in fact, it noted that said quandary raised "substantial doubt" about its "ability to continue." 'Course, hampering its Total Access rental plan and promising less stock in-store doesn't exactly sound like a brilliant plan to be successful, but maybe yesterday would be the best time to completely revolutionize its business and go online only. Just an idea, is all.

Netflix raising rates for Blu-ray subscribers by around 20 percent


Ruh roh. In a move that will undoubtedly cause an incredibly raucous stir, only to fade away as movie renters realize that Netflix is still the best deal going, America's most adored by-mail rental service is hiking the price of Blu-ray rentals once again. If you'll recall, Netflix already implemented a $1 per month fee for Blu-ray customers back in October, and now it's looking to push that premium higher by around 20 percent across its pricing tiers. The company asserts that the increase (slated to hit April 27th and only applicable to BD customers) is due to it buying more titles on BD to "accommodate the increasing number of Netflix members who prefer renting movies on Blu-ray." In fact, nearly 10 percent of all Netflix customers are choosing BD now, and obviously these platters cost quite a bit more for anyone (even Netflix) to procure. Head past the break to see how big of a hardship this will be on you.

Netflix goes social, integrates with Facebook Connect


Clearly, having access to your Netflix queue on your iPhone just isn't intimate enough, and now the company is expanding its reach once more by announcing Facebook Connect integration. Officially, the integration "seamlessly links a Netflix member's account with his or her Facebook account," though with Facebook changing its layout every three month, you probably won't be able to find the Netflix bit by the time summer draws to a close. At any rate, Facebook Connect will extend members' movie ratings from the Netflix community to Facebook, and of course, Netflix subscribers can decide whether or not they want to take advantage. The idea here is for Facebook friends to yap online over ratings and such, and generally keep Netflix on the tip of their tongue at all times. Hit up the full release past the break for all the appropriate setup information.

Netflix lays out official response to bandwidth capping allegations


After a small but vocal amount of Netflix users got the world thinking that it was pulling a Comcast and putting caps on computer-based Watch Instantly users, the outfit's Chief Product Officer Neil Hunt has come forward to clear the air. He makes clear that Netflix's aspiration is to "deliver to everyone the best bitrate that their broadband connection can support," also noting that congestion "could affect some users, but not others, at some times, but not always." He also notes that different titles and encodes for different playback device types "may come from different CDNs or different servers at a particular CDN, so they may have different paths and different bottlenecks." We'd encourage you to hit the read link for the full explanation, but we're already seeing enraged Roku users bark back by his dodging of the so-called out-of-sync audio issue that's evidently still present. We'll go ahead and warn you, Netflix -- you can't please 'em all.

Blockbuster hamstrings Total Access rental plan

You know what the last thing a losing company should do? Something that makes even more of its customers jump ship. As Blockbuster looks to cut costs and buy fewer DVDs from studios, the company is also hoping that Total Access customers don't notice a tiny change (posted in full after the break) in the fine print. Up until now, Total Access customers could swap their by-mail rentals in store for a DVD that didn't count against their maximum out-at-a-time number; starting right about now in most locations, "all free movie in-store exchange rentals will count towards the number of DVDs you are allowed out under your Total Access plan at any one time." Of course, it also removed the return date limitation on all movies rented in-store while still a paying Total Access subscriber, but clearly the cons outweigh the pros here. Anyone considering Netflix now that Blockbuster has pulled a fast one?

[Thanks, Michael]

Blockbuster to cut costs, buy fewer DVDs from studios


Maybe we're way off our rocker here, but it seems like every quarter Blockbuster is trying something new to get its business out of the dumpster. We've heard everything from potential mergers to boosted rental prices to yes / no on enhanced digital delivery, and now we're hearing that it'll be slashing costs by offering less of what you want more of. While the company saw same-store sales increase 4.4 percent in Q4 and 6.4 percent for the full-year 2008, it still managed to post a $435 million loss on an impairment charge for the most previous ending quarter. In order to shave costs, we're hearing that it'll be buying fewer DVDs from studios and lobbying for "better revenue-sharing participation from movie studios and video games publishers." In reality, though, we see all of this as just a band-aid for a stupendously large gash; it's going to take a serious overhaul for Blockbuster to survive the next decade, and buying a few less discs ain't it.

[Via TomsPayde]

Movie Gallery fires up in-store PowerPlay subscription plan


At this point, Movie Gallery and Hollywood Video are just children in the grown-up world of video rentals, but even we can't help but appreciate its latest, um, attempt. After finding that people don't actually enjoy waiting for DVDs to arrive by mail, it has concocted its very own in-store subscription service, dubbed PowerPlay. In theory, at least, it's a fantastic plan; users are able to pop in, check out a DVD or Blu-ray for an unlimited window of time (or video game for five days), and then return it at their leisure. The problem? The unlimited service is a staggering $39.99 per month, and so far as we can tell, you can only have one flick at a time checked out. Other plans are certainly available, but none of 'em come close to the awesomeness of Blockbuster / Netflix. Sorry, but it's true.

[Via VideoBusiness, image courtesy of CPDothan]

Ask Engadget HD: Netflix or Blockbuster -- best by-mail rental service?


Ah, the question we've been waiting for has finally arrived. With the economy leading more and more individuals to search for entertainment at home, many are wondering which movie rental service to sink their hard-earned dollars into. Take it away, Brandon:

"I'm looking to subscribe to either Netflix or Blockbuster for movie rentals, but I wanted some input from current users first. Which service is superior? Has anyone used both? I'm talking about the by-mail option, there aren't enough new releases available online for me to worry about. A little guidance, please?"

We know, it'll be difficult to quell your fanboyism here, but let's try to stick with facts and figures, okay? Has Blockbuster and / or Netflix treated you right / wrong? Let's hear it!

Got a burning question that you'd love to toss out for Engadget HD (or its readers) to take a look at? Tired of Google's blank stares when you ask for real-world experiences? Hit us up at ask at engadgethd dawt com and keep an eye on this space -- your inquiry could be next.

Coinstar buys out Redbox, will test higher Blu-ray rental prices


Redbox, the company made famous by its red movie rental kiosks, has been completely bought out by its majority owner: Coinstar. The announcement was made during the outfit's Q4 earnings call, and it's expected that the buyout was made in order for Coinstar to wallow alone in the windfall profits that are expected over the next few years. Speaking of profits, we're also being told that Redbox will start testing higher rental prices for BDs, much like Netflix has done, but obviously on a per-rental basis. There's been no word yet on just how high they'll push the Blu-ray rates above the standard $1, but you know you'll just suck it up and pay it. Not like you're reverting to DVD now, right?

[Via ZatzNotFunny]

Read - Buyout
Read - Increase in BD prices

Netflix breaks the 10 million subscriber mark, keeps on truckin'


We can't say the economic crisis has been too kind to every industry, but it's been a best friend to Netflix. As consumers divert their out-on-the-town dollars to sit-on-my-arse-and-watch-Netflix dollars, the by-mail and streaming movie rental company is just breaking records left and right. After closing a stellar 2008 with 9.4 million customers, the company has today announced that the 10 million mark has been crossed. For those struggling with basic math, that means that it has added 600,000 net subscribers since January 1st. So, where does Netflix go from here? Into every nook and cranny it can, of course, so don't be shocked to see Watch Instantly creep onto your next HDTV, set-top-box, Blu-ray player or portable microwave. Seriously, it could happen.

Apple prepping iTunes Replay on-demand streaming service?


Probably more than any other facet of Apple, we've seen rumor after rumor regarding iTunes fade away in the sunset. Of course, many of those delightful plans were likely shot down by the likes of the MPAA, RIAA and other so-called content guardians, but we say all that in order to depress your hopes on this one. For whatever it's worth, an undisclosed source at CNET has confirmed an AppleInsider report that Cupertino is prepping an on-demand video streaming service for the next iteration of iTunes. Slated to be dubbed iTunes Replay, the service would purportedly "allow users to stream their iTunes video purchases directly from the company's servers for playback anywhere, anytime without eating up local storage." There's no denying that Netflix's Watch Instantly has been a universal hit, but that's in large part due to the firm's willingness to embed that functionality onto all sorts of devices. Is Apple planning on going toe-to-toe with the market leader via your computer and a box it still regards as a hobby? We've got our doubts, obviously.

[Via CNET]

Blockbuster takes a hint, makes push for better digital distribution model


It's no secret that the movie lovers of the world are leaning more and more towards that instantly gratifying digital download option, and judging by Q4 numbers, we'd say Netflix has done a better job at exploiting that demand than rival Blockbuster. In a move we're honestly thrilled to see happen, the latter firm is apparently waking up and attempting to play catch-up. Here in the past week Blockbuster has hired on former Philips executive Kevin Lewis as Senior Vice President of Digital Entertainment, a spot that'll be responsible for "strengthening commitment to multi-channel entertainment delivery." Additionally, Robert Barr was selected as VP to Blockbuster.com, a move that signals the company's seriousness about getting its online division formidable. As easy as it is to kick the guy that's already down, no consumer in their right mind wants Netflix running this show solo -- there's a word for that type of situation, and it ain't good for your wallet.

[Image courtesy of Manda Mia]

Read - Kevin Lewis hire
Read - Robert Barr hire

Netflix profit up 45% in Q4, nears 10 million total subscribers


Analysts were already anticipating a killer Q4 for Netflix, and unlike practically every other company on the face of the planet, it delivered. The movie rental firm somehow managed to see net income rise to $22.7 million in the quarter, up from $15.7 million in Q4 2007. Revenue was also up by 19 percent, and subscriber growth was pegged at an amazing 26 percent. All told, the firm ended the quarter with 9.4 million subscribers, decimating its own forecast of ending Q4 with 9.15 million customers. Of course, some (Netflix included) are quick to assert that the recession has actually boosted business, with many consumers opting to stay home and rent versus taking the family out for a pricey night at the cinema. Netflix is now projecting to end 2009 with anywhere between 10.6 million to 11.3 million customers, and given all the hardware deals it keeps landing, we don't see a reason why it won't get there. Way to buck the trend, Netflix -- we needed some bright news today.

[Via AP]




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