Netflix is going back to the future. The digital video delivery company said Monday that it is reversing a plan announced only weeks ago to spin off its DVD-by-mail business from its streaming video service. CEO Reed Hastings announced on Sept. 18 that the company's movies-by-mail service would be rebranded as Qwikster and would add video games to its catalog, while the Netflix brand would be dedicated to streaming video. Now Netflix is abandoning that plan. "Instead, U.S. members will continue to use one website, one account and one password for their movie and TV watching enjoyment under the Netflix brand," the company said in a statement. Netflix issued its second mea culpa in as many months, acknowledging the consumer outrage about its Qwikster announcement.
Jobs didn’t make microchips go faster, he didn’t increase the capacity of hard drives, he didn’t invent optical storage drives, bitmapped graphics, cellular radios, Ethernet, or even the mouse. If Jobs wasn’t around, we’d have had all of these advances anyway—and people like Bill Gates, Andy Grove, Michael Dell, and Larry Page would have turned these technologies into computers, phones, and music players. If Steve Jobs hadn’t been around, what might that stuff have looked like? To appreciate how Jobs changed what you do every day, you’ve only got to look at how entire industries shifted after Jobs pushed Apple into them. Think of the BlackBerry, the Palm Pilot, the Creative Nomad music player, or MS-DOS. These are all perfectly serviceable technologies, things that got the job done. But none of them was transcendent. None was a dream to use, and most were a pain.
Microsoft Oct. 5 said it is launching a repurposed TV streaming platform via Xbox Live that will offer content from more than 50 media companies globally beginning during the fourth quarter. Content holders include Bravo, Comcast, HBO GO, Verizon FiOS and Syfy in the United States; BBC in the United Kingdom, Telefónica in Spain; Rogers On Demand in Canada; Televisa in Mexico; ZDF in Germany; and MediaSet in Italy. Xbox Live has more than 35 million registered users globally, including millions who pay an annual membership fee. Usuers spend a combined 2.1 billion hours a month on Xbox Live, according to Microsoft.
A breakdown of the components used in Kindle Fire shows Amazon is losing about $10 per tablet sold, lending credence to the view that the e-merchant sees the device not as a profit center but as a conduit for selling subscription media services and physical goods. Analysts at market watcher iSuppli tore down the Kindle Fire and estimated that the total cost of its components is $209.63. Amazon is selling the tablet for $199. The analysts said Amazon will make up for the loss through the additional sales generated by Kindle, particularly sales of physical, high-margin consumer goods. "The real benefit of the Kindle Fire to Amazon will not be in selling hardware or digital content," said iSuppli. "Rather the Kindle Fire, and the content demand it stimulates, will serve to promote sales of the kinds of physical goods that comprise the majority of Amazon's business."
VFTTH Council Conference 2011 - Verizon Communications Inc. is showing off a new home monitoring and control service it will launch on Oct. 11 as part of the FTTH demo home here this week. For $9.95 per month, plus the cost of the equipment, Verizon's broadband subscribers will be able to remotely monitor their homes via video, secure windows and doors, track energy usage, and remotely control lights, temperature, appliances and door locks. The service is initially available to Verizon's FiOS and DSL customers, but it will ultimately be sold on its own and could be a linchpin service in Verizon's larger connected home strategy, launched at CES in January. By rolling out a service that undercuts pricing by major home security firms like ADT, Verizon is staking out new turf -- albeit turf the Comcast Corp. and other cable firms also are exploring.
Aaccording to new consumer research from Parks Associates reports more than 10% of broadband households plan to purchase a smart TV in the second half of 2011, up from 6% in the first half. These households, representing 50% of the nearly one-fourth of U.S. broadband households planning to purchase a flat-panel TV, anticipate an average cost of $1,000 for the smart TV, defined as an HDTV with built-in Internet access capability. Consumers show strong preferences for entertainment and social networking options on connected CE devices such as Blu-ray players, game consoles, and smart TVs. Preferred features include the ability to stream and download movies and TV shows as well as access to Facebook and online music.
After months of speculation, it's here: Amazon's tablet, the $199 Kindle Fire, was unveiled Wednesday. Smaller and cheaper than Apple's dominant iPad, the Kindle Fire has a 7-inch display and runs on a heavily customized version of Google's Android operating system. The tablet offers Wi-Fi connectivity, but no 3G or other cellular connection. It also lacks a camera and microphone, two features found in most rival tablets. But the Kindle Fire isn't trying to be an all-in-one computing device. Amazon's focus is on media consumption, like reading books and magazines as well as watching video and streaming music. The tablet includes a 30-day free trial of Amazon Prime, the company's $79-a-year service that includes two-day shipping and some free streaming video access.
Best Buy will launch new initiatives and enhance its return and price-match policies to help provide a "hassle-free" shopping experience this holiday season. Initiatives include the introduction this fall of specially trained "connection specialists," a product of the chain's Connected Store pilot, who will help shoppers navigate Best Buy's wide assortment of mobile products and services. Other holiday enhancements include an extended return period of Nov. 13 through Jan. 24, and a promise to match the price of any brick-and-mortar competitor on any identical product between Nov. 13 and Dec. 24, excluding Black Friday and Cyber Monday.
Blockbuster unveiled a video streaming service limited to Dish Network satellite subscribers, a move to better compete with movie rental giant Netflix and rival cable and satellite TV providers. For non-Dish subscribers, the company plans to unveil an online streaming plan later this year, Blockbuster president Michael Kelly told Reuters in an interview. Called Blockbuster Movie Pass, the new subscription service will start at an additional $10 a month for streaming plus movie and video game DVD rentals by mail and at the company's more than 1,500 stores.
'Tis the season to read holiday tea leaves, and three just-released forecasts predict that consumer spending will be lukewarm, at best. At the low end, the International Council of Shopping Centers is looking for a 2.2% rise. And while the trade group points out that there are many components to such a forecast, the overall trend is tepid. "No matter which metric of performance is used, ICSC projects 2011 U.S. holiday sales are likely to advance at a slower pace than in 2010 as strong economic headwinds continue to persist," says Michael P. Niemira, ICSC's chief economist, in its release. "The 2011 holiday season forecast also envisions a pace of sales considerably slower than during the first half of 2011 since retail sales generally advanced at a faster pace in early 2011 than during the 2010 holiday season." It predicts a gain of 2.7% in apparel and 1.2% in electronics; overall, it anticipates higher-end stores to fare better than moderate or lower-priced stores.
The global home automation and control systems market is estimated to grow from $16,888.27 million in 2011 to $35,627.83 million in 2016 at a CAGR of 16.1%. Starting off with pneumatic phase, the home automation and control systems market has reached the world of standards, protocols, and data distribution systems; which allows the home automation control structures such as security systems, and lighting systems to interact and integrate with each other. The home automation and control systems that started with wired technology have now entered the era of wireless technology with technologies such as Zigbee, Z-wave, EnOcean, and others coming up. The wide adoption of Internet across the globe has resulted in the growth and advancement of home automation and control market. The flexibility to control and monitor home automation and control systems from any point even out and far from homes is possible through Internet. These systems are also accessed and monitored via smartphone through message alerts.
After watching customers leave and the company's stock price plummet, Netflix Chief Executive Reed Hastings on Sunday admitted that he had fallen victim to "arrogance" and announced changes to the DVD offering. The company's DVD-by-mail service will get a new name, Qwikster, and add the option to order video games along with movies. "We chose the name Qwikster because it refers to quick delivery," Hastings wrote in a blog post and an email sent to subscribers. "We will keep the name 'Netflix' for streaming." Netflix in August announced that it would separate the pricing for online video streaming and DVDs, resulting in a hike of up to 60% for people who utilize both options. A number of customers were outraged, and last week Netflix disclosed that it is on track to lose 600,000 subscribers in the current quarter, after previously telling investors to expect that it would add 400,000. As a result, Netflix stock fell 26% in two days, equating to a loss of $2.6 billion in market value.
More than 17,600 attendees and 444 exhibitors from 70 different countries participated in CEDIA EXPO 2011, September 7-10 in Indianapolis, Ind. Of those participants, 25% were first time attendees and 83 first time exhibitors. "The feedback received from attendees was positive and energetic," said Utz Baldwin, CEDIA CEO. "According to the 2011 CEDIA Benchmarking Survey, electronic systems contractor businesses are experiencing higher revenue and profitability and judging by the data and the traffic at the show the coming year looks to be one of growth and expansion." CEDIA EXPO offered more than 100 CEDIA University education courses and 150 Manufacturer Product Training opportunities. The most popular CEDIA courses attended focused on home networking, content delivery, and emerging technologies/trends. According to exhibitors and attendees, CEDIA EXPO 2011 was a valuable business opportunity to connect with new buyers and identify new and future technologies.
Netflix subscribers threatened to flee in droves when the company whacked them with a surprise price hike, which kicked in this month. Now they're making good on that threat. Netflix on Thursday cut its subscriber forecast for the current quarter, saying it now expects to end the period with 24 million customers -- down from the 25 million the company forecast just a few weeks ago. That's also down from the 25.6 million global subscribers Netflix had on June 30, the end of its second quarter. Investors punished the stock, sending Netflix (NFLX) shares down more than 14% -- even though the company did not change its earnings or sales guidance.
Amazon is planning to launch a service that would offer customers access to a library of books for a fixed monthly fee, reports The Wall Street Journal , citing sources familiar with the matter. Amazon is reportedly in talks with publishers about the service, but it’s unclear how far the project has progressed, as some publishers aren’t too happy with the idea. The details about the project are scarce, but it appears that the library would primarily contain older works with restrictions on how many books a user can access each month. The service would also be available to subscribers of Amazon Prime, a membership program that gives users free shipping and access to movies and TV shows for $79 per year.
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