QuoteA study published Tuesday by Sandvine Inc. shows that Netflix movies and TV shows account for nearly 30 percent of traffic into homes during peak evening hours, compared with less than 17 percent for Web browsing.
Only about a quarter of homes with broadband subscribe to Netflix, but watching movies and TV shows online takes up a lot of bandwidth compared with Web surfing, email and practically every other Internet activity except file sharing and videoconferencing.
As late as last year, both Web surfing and peer-to-peer file sharing — mainly the illegal trading of copyrighted movies — were each larger than Netflix's traffic.
QuoteMiramax and Netflix have signed a multiyear content deal, the companies announced today.
Starting next month, "several hundred" Miramax movies, including "Pulp Fiction," "Shakespeare In Love," and "Good Will Hunting," will be made available on Netflix's streaming service in the U.S. The deal marks the first time that Miramax has ever brought its content to a digital subscription service, the company said.
"From day one, we've been very clear about the importance of digital and our desire to respond to the significant pent-up demand for our films--delivering to consumers whenever and wherever they want," Miramax CEO Mike Lang said in a statement. "This agreement is an important first step in our digital strategy."
QuoteThe 25-year-old company filed for bankruptcy yesterday in New York after losing sales to Netflix Inc.’s Web and mail-order movie service and Coinstar Inc.’s Redbox DVD rental kiosks. Revenue dropped 20 percent to $4.06 billion last year, when Dallas-based Blockbuster reported a $558.2 million net loss.
As of Aug. 29, Blockbuster had about 5,600 stores worldwide, including 3,300 in the U.S., according to court papers. Michael Pachter, an analyst at Wedbush Morgan Securities in Los Angeles, said the company may have to cut U.S. locations to about 2,000 to increase annual sales per store to at least $1 million. In 2002, that figure stood at $1.1 million, he said.
“No one can predict what the market will look like for them going forward as Netflix and Redbox continue to take market share, so they are shooting in the dark,” Pachter said. The company will also face pressure to cut stores from “a new class of shareholder wanting to see cash increasing in a hurry,” he said.
In the past two years, Blockbuster has closed 1,061 U.S. company-operated stores, according to a court document. All its U.S. operations, including stores, DVD vending kiosks, mail and digital, will continue to operate normally, the company said.
QuoteUnder the new arrangement, "hundreds" of "Saturday Night Live" episodes from the past 35 years, as well as "day-after broadcast" of the show's next three seasons, will be available on Netflix Instant Streaming. NBC is also offering every previous-season episode of "30 Rock," "The Office," and "Law & Order: SVU." Earlier seasons of those shows already on Netflix will still be available. All episodes of the venerable SyFy series "Battlestar Galactica" will also be available on the service. NBC Universal and Netflix said that "Monk" and "Friday Night Lights," among many other shows, will also be included in the expanded relationship between the companies.