Blockbuster To Close More Stores, But Saves Majority

by Joel Hruska

from: http://hothardware.com/

Dish Network's eleventh hour Blockbuster purchase saved a number of stores from imminent closure, but the company still intends to close additional properties. Blockbuster has spun this into a victory; the company's blog claims to have "saved" stores as opposed to liquidating them.

"We’re pleased that we will continue to operate more than 90 percent of the stores that were offered at auction in April,” said Michael Kelly, president of Blockbuster. “By lowering pricing and offering competitive summer promotions, we’ve brought millions of customers back into Blockbuster stores in the last three months to experience the best in convenience, choice and value. Today, more than 100 million people live near a Blockbuster store.”

“Unfortunately, despite our efforts to reach reasonable terms, some property owners have closed stores,” Kelly added. “However, we’ll continue to look for opportunities for physical distribution in these neighborhoods as we expand our in-store experience, unmatched for movies and family entertainment."

The company originally had some 1700 properties, of which 1500 are currently still up and running. The company's online offerings may have gotten a welcome jolt in recent weeks; Blockbuster has launched a fresh offensive recently in an attempt to lure away customers angry over Netflix's sudden price hike. Last week, the company announced it would offer a combined DVD+streaming access plan with new releases arriving more quickly than on Netflix, game rentals for multiple consoles, in-store exchanges, and no additional charge for Blu-ray rentals. In and of themselves, the perks might not be sufficient to prompt a mass exodus, but it's a well-timed move on Blockbuster's part.

The averted store closings are good news, but we've yet to hear much from Dish on how it intends to integrate the Blockbuster brand into its own offerings. There aren't many linkages between satellite broadcasting and physical film distribution, and no simple way for Dish to convert Blockbuster into a hybrid company while keeping prices competitive with the online-only offerings.

Downtown-Based Blockbuster to Go on Auction Block. The Opening Bid? A Whole $290 Million.

By Robert Wilonsky

From http://blogs.dallasobserver.com/

Blockbuster, which went into voluntary Chapter 11 in September, said in a statement released moments ago that it has agreed to sell to a group of noteholders -- one of whom happened to be named Monarch Alternative Capital, the very same creditors to whom Tom Hicks owed all those hundreds of millions back when he owned the Texas Rangers. The group, called Cobalt Video Holdco, LLC, has agreed to buy the Renaissance Tower-based company for the low, low, low price of $290 million -- which, per Blockbuster, is the opening "stalking horse" bid should others interested in buying the company step forward offering more.

Nothing's certain, at least not till the bankruptcy court in New York signs off on the offer and spells out the bidding procedures. But, insists CEO-for-now Jim Keyes in the company's official statement, this is the best deal on the table:

"By initiating a sale process at this time, we intend to accelerate our Chapter 11 proceedings and move the Company forward. An auction will allow the Company to invite competing bids from both strategic and financial investors. This will also allow for the consolidation of ownership of the Company to those with a clear and focused vision for Blockbuster's future.

"The purchaser will be able to take full advantage of Blockbuster's many strengths, which include an internationally recognized brand name, an exceptional library of more than 125,000 titles, millions of loyal customers, and a multi-channel content distribution platform. Because of its ability to deliver physical content (through DVDs) and digital content (through streaming), Blockbuster can offer customers the unique ability to access any movie, any time."

Netflix streaming-only subscription revealed

• by James Fudge
• from http://www.gamepro.com/
  

Netflix announced this morning changes to its subscription plans for customers that use steaming and disc-based content delivery.

Beginning in January the price of the disc-by-mail delivery and steaming content subscription plan will see an increase of $1 a month to $9.99. In addition to the price increase, Netflix introduces a $7.99 streaming-only subscription option to consumers. Coincidentally, the pricing for the streaming-only subscription is $7.99 - the same price for a monthly subscription to Hulu.

The company said in an announcement this morning that this new option is a direct result of the viewing habits of subscribers. Current subscribers are watching more content via the streaming option than via the disc-by-mail option. In addition, the company expects that streaming content viewing will surpass disc-based consumption by year's end.

Netflix recently announced that it plans to invest more money to license streaming content than to acquire DVDs. The challenge the company faces is that most of the newest entertainment offerings are on disc.

For more information on pricing changes that take effect in January, visit blog.netflix.com". Netflix is available in the United States and Canada via PlayStation 3, Xbox 360, Wii, and other internet-connected devices.

Netflix Adds “Saturday Night Live” and Other NBC Shows

By: Samuel Axon
From: http://mashable.com/



Netflix and NBC Universal have struck a deal to load the streaming video site with tons of content from both NBC and its family of cable networks, including all 35 seasons of Saturday Night Live, and new episodes of the sketch comedy show the day after air.

Saturday Night Live just aired its season premiere last night, but we’re not seeing the episode on Netflix. Apparently the deal hasn’t been executed just yet.

The day-after premiere episodes will continue through 2012, but neither Netflix nor NBC specified how long the other content deals will last. The Office, Law & Order: SVU and 30 Rock will continue to appear on Netflix with the addition of new seasons, along with all episodes of Friday Night Lights. As far as cable content goes, Syfy properties Sanctuary, Battlestar Galactica and Destination Truth will be presented in their entirety, plus USA’s Psych, In Plain Sight and Monk.

The press release from Netflix and NBC says some movies from Universal will be added as well, but it didn’t name any specific films.

Netflix lives and dies by the content in its library, and its leaders have made some smart choices in their quest to secure strong shows and films. For example, they struck a deal with Starz to carry that network’s content.

If they had approached studios directly in that case, they would have had to wait years for the films to pass through existing exclusive contracts.

Netflix adds iPhone and iPod touch compatibility in latest app version

By Vlad Savov
From http://www.engadget.com/

We knew this was coming and here it is: the Netflix application, heretofore reserved only for iPad users, has trickled down to iPhone and iPod touch devices. Version 1.1.0 makes the TV show and movie streaming app universal -- so long as your universe is known as iOS -- and looks to massively expand the available audience for Netflix's mobile effort. What are you waiting for, go get it already.

Netflix versus Redbox: Head to Head (Infographic)

From: http://www.rentersinsurance.org/netflix/

Via: Renters Insurance

Netflix on Nintendo Wii is Now Available to Everyone

From: http://mashable.com/


Do you have a Nintendo Wii and a Netflix account? If so, you can now stream Netflix Watch Instantly’s entire library of TV and film content to your TV using your console’s Wi-Fi connection. You’ll need to order a disc from Netflix to do it, but that disc is shipping to anyone who wants it now; previously it was available to only a select few.

Log into your account and go to Netflix.com/Wii, then tap the “Send the FREE Disc!” button and your disc will be on its way, just like any other Netflix disc. You’ll get to keep this one because you’ll need to put it into the console any time you want to watch movies online.

Sony’s PlayStation 3 uses a similar method, but Netflix is integrated into the software of Microsoft’s Xbox 360 console — no disc required. Also note that unlike those machines the Wii is only capable of standard definition video, so you won’t be able to enjoy Netflix in high definition.

That won’t matter to millions of Netflix users, however. The Wii is more popular than either the PlayStation 3 or the Xbox 360 despite its lack of high definition; some people just don’t care that much about HD. Netflix’s web player doesn’t do HD either, so it’s not like Wii owners are missing out on something essential to the Netflix experience.

Update: We’ll note as some of our readers have that Netflix streaming on the Wii is not available to users outside the U.S. We didn’t mention this initially because Netflix does not offer any service at all outside the U.S., but clarification never hurts. Netflix has announced that it plans to launch streaming service in one other country later this year, but further details haven’t been revealed yet.

Netflix beginning shipments of Wii streaming discs

by JC Fletcher

from http://www.joystiq.com/

Awesome news for Wii owners looking to veg out with all-day Mystery Science Theatre 3000 marathons (or even watch responsible numbers of TV shows and movies): Netflix announced via its blog that it has started shipping out the discs that enable Instant Streaming on Wii, to "some of our Netflix members."

If the PS3 rollout is any indication, you'll receive an e-mail sometime soon telling you if you're a lucky winner. Of course, if you didn't sign up for a disc, you're not going to get one. You should probably go sign up for one is what we're saying.

TiVo Premiere: One set-top box to rule them all

With its new TiVo Premiere DVR, TiVo asks the rhetorical question: Would you like to replace your HD cable box/DVR, broadband Web box (a la Roku) and stereo-connected music player with a single box that lists content search results regardless of their location — broadcast, broadband, video-on-demand — all at one time?

Obviously the answer is yes, but there's a catch.

First, the TiVo Premiere, unveiled last night, is the Handy Housewife Helper of set-top boxes. There are two versions, the Premiere with a 320GB hard drive (45 hours of HD recording, $300) and the Premiere XL with 1TB (150 hours of HD recording, $500), each running TiVo's new widescreen interface and each offering an Ethernet internet connection to bring in Web content including Netflix and Amazon Video On Demand. When you search for shows, the results include content aggregated from all sources. In other words, if you search for, say Up!, it'll find and list where it is on broadcast channels, video-on-demand, Netflix, Amazon Video On Demand, etc.

Premiere has a CableCard slot so you can replace your cable box (assuming you don't have to debase yourself too much to get your cable company to give you one), and TiVo will be offering a wireless 802.11N Wi-Fi adapter for $90 in June since you likely lack an Ethernet jack in your living room. Later this year, you'll be able to buy a remote with a slide-out QWERTY keyboard for faster typing.

TiVo improved on the company's legendary interface and artificial intelligence or whatever prestidigitation they use to help you find stuff you'd like even if you didn't know you liked it and didn't ask TiVo to find it for you. Premiere's interface is now completely widescreen, which means more info on a single screen and less drilling down for more detail. And having a terabyte of DVR space alleviates a lot of DVR guilt (having to decide what old unwatched shows to erase to make room for new shows you won't watch).

The caveat is cost. TiVo's monthly service fee (at least $13, depending on the plan you pick) is probably around the same as a cable company's box lease and DVR service fees. But you have to buy TiVo's box, and TiVo is unlikely to come to your house and swap it out on a whim.

One other minor caveat: Premiere uses HDMI 1.3, which means it likely won't play back upcoming 3D broadcasts in full HD. And too bad they didn't build in a Blu-ray player so I can get rid of another box.
If you decide TiVo's telepathic software, enhanced interface and Mr. Creosote recording capacity is well worth the price, you can order Premiere from TiVo's Web site as of this morning for delivery sometime in April.

Via TiVo

By Stewart Wolpin

HBO introduces online streaming

The cable network is making its movies available to subscribers online. Will this hurt Netflix?

Posted by Kim Peterson
From: http://articles.moneycentral.msn.com/

HBO has taken a page right out of Netflix's (NFLX) business model with the introduction of HBO Go, its new video-streaming service.

Here's how it works: HBO subscribers can go online and watch the same movies HBO offers on its cable networks. And -- at least for now -- the service will be free.

But HBO Go is only for the 38 million subscribers to HBO or Cinemax, according to CNET. If you don't pay for the cable channels, you won't get online access.

This is similar to the way Netflix offers on-demand video streaming for its customers. Netflix has long considered this to be its future business model; mailing DVDs to customers is just a way to get it there.

Will HBO Go be a "go" for consumers? CNET's Greg Sandoval wonders why the cable channel would even bother.

A huge part of Netflix's appeal is lower-cost video entertainment. Cable subscribers can jump to Netflix and pay just $10 a month to watch DVDs mailed to their home or the movies that Netflix streams over the Web.

But at least HBO will likely have newer titles than Netflix. So far, Netflix's on-demand offerings have been a bit lackluster. The company is trying to change that, and recently agreed to delay Time Warner new releases for nearly a month in return for better titles on its streaming service.

Your Guide to Cutting the Cord to Cable TV

by Mark Glaser
From: http://www.pbs.org/

From time to time, I'll give an overview of one broad MediaShift topic, annotated with online resources and plenty of tips. The idea is to help you understand the topic, learn the jargon, and take action. I previously covered Twitter, citizen journalism, and alternative models for newspapers, among other topics. This week I look at cutting the cord to cable (or satellite) TV and watching TV content online.

Background

Anyone who gets cable TV or satellite in the U.S. has noticed a pronounced trend over the years: their monthly bill keeps going up. Sure, you can get lots of channels, plus HD channels and DVR functions, but those usually cost extra. According to research from Centris (PDF), the average digital cable bill was nearly $75 last year, and the average monthly satellite TV bill was $69.
What's causing those bills to skyrocket? A lack of competition among cable and satellite providers, and the rising costs of programming. The most recent programming dustup happened when News Corp. demanded carriage fees from Time Warner Cable, and settled before any channels were dropped. Time Warner is planning an upcoming rate hike. Like other traditional media, TV networks (both cable and broadcast) are being squeezed by lower advertising income, and think they can just keep raising the cable bills indefinitely.
Unfortunately for the cable TV industry, they've picked a bad time to raise their rates. Centris found in a separate report (PDF) that due to the economic meltdown, eight percent of U.S. households were likely to cancel their pay TV in the third quarter of '09, and nearly half of households contacted TV providers for discounts or cheaper packages.
Thanks to the rise of Netflix, Hulu and hardware like the Roku box and Apple TV, cutting the cord to cable TV doesn't mean cutting yourself off from your favorite shows and channels. While past experiments at bringing together the web and TV (such as WebTV) have failed, the recent recession has pushed people to pursue their own convergence projects that enable them to watch web content on their TV. Depending on various living room setups and viewing habits, making the changeover from cable to online TV can be complex and maddening. But you're sure to save a bundle of money.

Hardware and Services

The first thing to do when cutting the cord is list the shows you watch regularly, and your favorite TV channels. Next, do a little online research to find out whether those shows appear on the channel's streaming sites (such as NBC.com, CBS.com, etc.) or on Hulu or YouTube. Many shows on pay channels such as HBO don't appear until much later, and usually must be bought via a service such as iTunes.
In addition to what's available online, you might be surprised at the quality of over-the-air broadcast channels since the digital switch-over last year. Many newer TVs only require an antenna to get local broadcast channels, while older TVs need a converter box, which runs from $40 to $80. Plus, some of the programming includes HD content. To find out which digital channels you can get over the airwaves, input your location at the AntennaWeb site.
(Note: Broadcasters recently announced at CES that they would be offering "mobile DTV" so that people could pick up digital broadcast TV on laptops, smartphones and tablets.)
Below is a rundown of some of the more important elements to enjoying TV content via the web. You won't need to get all of them but you can mix and match those that will get you what you need. Most cable quitters find they can get about 95 percent of the TV content they used to watch on cable via the various services below.
Hardware
Roku
This is the box most cable quitters seem to like. It connects to your TV and your computer network, let's you watch Netflix streaming movies, and offers some free and pay options for additional content. It costs $79.99 for SD and $99.99 for an HD model.
AppleTV
It's basically a front-end device to iTunes, letting you download movies and music and play them through your TV. Problem: No TV tuner or DVR functionality.
Digital converter box
If you want to get the digital over-the-air stations in your area, you'll likely need an antenna for newer TVs or this box for older TVs. Cost: $40 to $80.

WD TV

WD TV
This small box connects your TV to an external hard drive, letting you play movies, TV shows, photos or music you have downloaded. The standard WD TV is about $79, while the WD TV Live that lets you watch Net content is $119.
eyeTV hybrid
It's a TV tuner for a Mac, letting you watch digital over-the-air channels on your Mac, or even on your iPhone with an extra $4.99 app. Cost: $149.95.
Game consoles
Netflix will let you play movies through your XBox 360 or PlayStation 3. There are also a wide variety of TV tuners and other devices that can turn game consoles into home entertainment systems.
Note: If you prefer simply connecting your computer directly to your TV set without any other hardware, you can do that, too. Here's a great video explaining how:

How To Connect Your Laptop To Your Television on Howcast

Services and Sites
Netflix
The granddaddy of the DVD-by-mail services, Netflix has also become a huge entryway for people who want to dump cable and get TV shows later when they're available on DVD. Netflix also offers unlimited streaming of some movies and TV shows, which works well with a Roku box or other Netflix-ready devices. Cost: $8.99/month for 1 DVD plus unlimited streaming, with various higher cost plans for more DVDs.
Hulu
The free U.S.-only TV show service is a joint venture between NBC Universal, Fox, and Disney. You are forced to watch commercials before and during TV shows and movies. While it has been an especially popular service for those dumping cable, there has been chatter that Hulu might charge for content at some point. Cost: Free (for now).
iTunes
Apple's poorly named digital media buying service started out selling music downloads. Then it added a podcast directory, and now sells TV shows and rents/sells movies. Downloading TV shows at $1.99 per episode can get pricey, though there are discounted "Season Passes" and some limited free TV show offers.
YouTube
The most popular video site on the web also can be accessed through various devices in order to view its content on your TV. These devices include the Nintendo Wii, PlayStation 3 and TiVo.

Amazon on Demand

Amazon on Demand
Trying to compete with Netflix and iTunes, Amazon offers quick downloads of various TV shows at similar prices to iTunes. They are playable on Macs or PCs, or on devices that connect your computer to your TV.
Boxee
Free software that helps you organize TV and movie content on your computer. Currently in beta, the Boxee software will soon come on a special Boxee Box from D-Link for under $200.
PlayOn
Windows software that lets you play Netflix, Hulu, YouTube, etc. from your computer on your TV via a PlayStation 3, Wii or XBox 360. Cost: $39.99 after 14-day free trial.
BitTorrent
Popular free file-sharing software for people who trade TV show and movie files. You'll need to search your own conscience to decide whether to download copyrighted material from sites that utilize the torrent system.

Sample Setups

Here are a few sample setups of people who get TV content without subscribing to cable.
Roku + Netflix and Amazon
Who: CancelCable.com bloggers
Setup: Roku box that plays Netflix and Amazon content; digital TV converter box.
Quote: "Since we need to be more proactive and select shows from Netflix or Hulu, we read a lot more reviews and tend to sit down and watch complete movies rather than just switching around hundreds of channels."

Dan Milbrath's setup with eyeTV

eyeTV + Mac Mini
Who: Dan Milbrath, product manager, San Francisco
Setup: eyeTV hybrid to get broadcast channels on a Mac Mini; projector for movies; Netflix.
Quote: "I'm intrigued by on-demand, online TV options like those being offered by Amazon and iTunes but I think the pricing is still a bit too steep. $1.99 for a one hour episode of 'Mad Men' is about double what I think they should charge."
AppleTV + PlayStation 3
Who: Leo Prieto, founder of online community Betazeta.com, Santiago, Chile
Setup: AppleTV with iTunes and Boxee; PlayStation 3 playing BitTorrent content, podcasts.
Quote: "I spend less than $30 a month on content, and it's all stuff I decided to watch (and not just 'what was on' or 'what I remembered to record on my DVR'). I also have Boxee on the Apple TV installed, which lets me access lots of public and free podcasts or web shows that aren't available on Apple TV (all free and legal)."
Hulu + laptop
Who: Carla King, author and tech editor, Pt. Richmond, Calif.
Setup: Laptop watching Hulu; uses projector for some movies on Netflix or iTunes.
Quote: "The availability of content of all kinds on the Internet is a terrible distraction for me from tasks at hand and health in general. Whereas before I could cancel my magazine subscriptions and choose not to buy cable TV to keep myself on task with personal and professional goals, I find that today I need to develop my willpower to the utmost."

What's Missing

For many people, the biggest barrier to canceling cable is the loss of live sports. While MLB.com has a package of games you can stream online, and CBS has offered a popular March Madness on Demand stream, many other leagues have been slow on the uptake. Plus, there are often restrictions and blackouts with some online season pass deals. For example, the NBA League Pass Broadband does not include nationally or locally televised games. So if you're living in Boston, you won't be able to see Celtics games online if they are also on TV at the same time (whether they are home or away).

Leo Prieto

The same goes for other live events, such as awards shows. "Mainly, live TV content is impossible," said Leo Prieto, who gave up cable in 2005. "And most of that live TV content isn't available to download on iTunes later. For example, the Oscars or some sports event. In that case I have to go to BitTorrent and get the show afterwards. I would love iTunes or YouTube to offer live content."
Multimedia reporter Sean Mussenden is also living the cable-free life, and says he believes TVs will eventually come with direct Internet capabilities. He had an interesting take on how his discovery of programs changed without cable.
"When you rely on cable, the easy access to thousands of shows tends to limit your willingness to explore further," he said. "But there are far more options for informative and/or entertaining content beyond cable. Not having having cable has made me more willing to explore. For example, at the moment I'm really enjoying watching talks on Ted.com and MIT's OpenCourseWare. I don't think I'd have discovered either of them if I still had cable."
In many cases, people who have canceled cable still get to see their favorite TV shows, but often much later than those with cable. If they can deal with being a bit behind, and don't mind the tech hassle of setting up a Net-to-TV connection with gear, they're often happy to save money and watch what they want.

More Reading

If you want to read more about cutting the cable TV cord, check out these sites and stories:
CancelCable.com
Cable Freedom Is a Click Away at NY Times
You Don't Need Satellite TV When Times Get Tough at News.com
Cancel Cable and Save with Free Internet TV at Digital Trends
Ways To Watch TV Without Paying An Arm And A Leg For Cable Or Satellite at Bible Money Matters
Turn On, Tune Out, Click Here at WSJ (paid subscription required)
Cancel Cable TV by Paul Kedrosky
Cable TV's Big Worry: Taming the Web at NY Times
Who Will Win the Cable Wars? Not You. at Slate
Broadcast TV Networks Want Your Money at The Atlantic
More Fees For Broadcasters Could Hurt Cable Networks' Growth at Dow Jones
Why the Roku Netflix Player Is the First Shot of the Revolution at NY Times
Netflix Agrees To Warner's New Release Delay In Exchange For More Streaming Rights at PaidContent
*****

Have I missed any important elements to cutting the cord? Have you cut the cord and if so, what's your setup? Share your thoughts in the comments below, and I'll update my story with any gear or services I missed.
UPDATE: There has been a lot of commentary on this story when it was linked on the PBS Facebook page. I thought it was worth addressing a few of those comments here:
> Michael Lindemann said, "Interesting that no one mentions cable Internet access as being an upshot to cable access. Interesting article, but it misses at least one key point: The fastest and most reliable way to get home Internet access is through the cable company! In my area, the cable Internet subscription is bundled with the cable service at a discount." That's true. For many people who cut the cord to cable TV, they still are likely to end up paying for Internet service from the cable company.
> Prashant Shah said, "The missing option in the article is the public library, where I've always found not-so-recent shows. Newer shows you need to wait a bit, but then I'm in no hurry." True enough. The public library in many communities offers up free borrowing of TV shows and movies on DVD. The selection can vary from library to library, but the price is right: free, as long as you return them on time.

Mark Glaser is executive editor of MediaShift and Idea Lab. He also writes the bi-weekly OPA Intelligence Report email newsletter for the Online Publishers Association. He lives in San Francisco with his son Julian. You can follow him on Twitter @mediatwit.

Video Killed the Video Store

By Ryan Singel

The Blockbuster is dead, long live the blockbuster.

At least that's what the technology omens are saying.

The Wall Street Journal reported Tuesday that Blockbuster Video, whose shares are trading below $1, is seeking advice on how to file for bankruptcy. Blockbuster counters it's only trying to get help to restructure its debt.

No matter. The days of tromping to the video store to find the night's entertainment are past. Now the question is only how long will it be until walking to the mailbox to get a DVD is considered antiquarian.

Driving or walking to the video store to bring home less than a gig of data — data that may or may not even be in stock — just doesn't make much sense anymore.

At least not when compared to Netflix's easy ordering system, its recommendation engine, lack of late fees, deeper inventory and clever use of the Postal Service to have movies delivered quickly.

Blockbuster tried to keep up, with an innovative mail rental plan that let people trade in movies at the store as well, but the plan turned out to be too complicated and too late.

But even the notion of even leaving the room to get a movie, doesn't make sense if you have a fat internet connection and the willingness to explore some legal and less-legal ways to download movies to a computer.

Note that also on Tuesday, cable provider Comcast announced that it was rolling out "wideband" in the San Francisco Bay Area (including a 50 Mbps downstream offering for $140 a month) and doubled the download speed of its current basic plus service to 12 Mbps down for free. That marks the 10th urban area in the United States that the cable operator is offering real broadband.

Think YouTube, Hulu, NetFlix's streaming movies, iTunes and Amazon overpriced rentals on demand, as well as dozens of others striving — yet again — to find a way to stream Hollywood video across the internet.

On Wednesday, ZillionTV announced that by the end of the year it will sell a $50 internet-connected set-top box that will stream HD and standard movies and premium TV, letting people choose to pay for entertainment or watch ad-supported shows.

No one has created a popular computer-in-the-living room solution yet — which makes DVDs still very practical, but that's just details. Some company — or several — will and then the notion of leaving the house to get a movie to watch will seem as quaint as writing a check at the grocery store.

The only question is what will become of all those old Blockbuster video stores and their signature blue awnings? My money is on an innovative pizza delivery company with a blue logo to start up and take over where the DVD business died.

Because at least so far, the internet has not yet figured out how to deliver a pizza better than a brick-oven pizza place can.

Photo: RocketRaccoon/Flickr

Blockbuster releases set-top box with à la carte rentals

By David Chartier

After a handful of rumors earlier this year, Blockbuster has finally leveraged its troubled Movielink service to deliver a set-top box for digital delivery to the living room. Combined with a low price point and a unique introductory business model, Blockbuster may have a shot at catching up with some of its competition.

Dubbed the "MediaPoint" digital media player by its manufacturer, 2Wire, Blockbuster's box can stream roughly 2,000 of the 10,000 films from Blockbuster's online library, which it gained from its acquisition of Movielink in 2007. Unlike competitors such as Netflix, Blockbuster charges no subscription fee for access to its streaming service, opting instead to go with an à la carte model with prices starting at $1.99 per rental. Users have 30 days to begin watching a film and 24 hours to finish once a film has been started.

To get the MediaPoint player, Blockbuster is using an introductory promotion that allows customers to prepay $99 for 25 rentals, and they will receive a MediaPoint unit for free. No standalone price is listed for the unit otherwise, and customers do not need to sign up for a Blockbuster Online DVD rent-by-mail plan.

This pricing model stands in stark contrast to the one used by Netflix, Blockbuster's closest competitor and the company that has so far dominated the DVD-by-mail business and seen reasonable success with an online strategy. In May, Netflix introduced its own set-top box built by Roku, which sells for $99 and allows Netflix subscribers to stream any film or TV episode from the company's much larger online catalog of over 12,000 titles. With a decent lead over Blockbuster in the online space, Netflix has also announced a number of partnerships and updates that now bring its streaming content to the Xbox 360, various Blu-ray players, PCs, TiVo, and even the Mac.

Still, Blockbuster's MediaPoint player and OnDemand service have a number of advantages that cater to users who don't want to pay subscription fees and who are also interested in more recent films. While Netflix's much larger catalog tends to skew towards back-catalog titles, Blockbuster OnDemand focuses on newer releases such as Get Smart, Forgetting Sarah Marshall, and Sisterhood of the Traveling Pants 2.

Blockbuster says its player is "about the size of two boxes of movie candy," and unlike Netflix's Roku player and "Watch Instantly" service, films can be browsed and downloaded right from Blockbuster's MediaPoint player in the living room. (With Netflix, users must use a computer to queue films for streaming on the Roku device.)

The MediaPoint player comes equipped with WiFi (802.11b/g), Ethernet, HDMI, composite, component, and optical outputs. Like Netflix's player, Blockbuster's MediaPoint player is also capable of HD content as well as SD, though it appears neither service is actually streaming HD content to their set-top boxes just yet (Netflix is streaming HD video to Xbox 360 users, though). There is also no mention in the company's press release of what appear to be a USB port and SD memory card slot on the front of the device.

Finally showing a little more feistiness after getting pummeled by the competition lately, Blockbuster isn't stopping with its own media player, either; the company is negotiating to get its OnDemand streaming service onto Blu-ray players, and it's also considering a debut on the Xbox 360 or Playstation 3, according to Reuters.

Competition is escalating in the online video space. MGM is bringing full movies to YouTube, Hulu streamed presidential debates live, and following its flight to Windows PCs, TiVo today went so far as to introduce a mobile site at m.tivo.com that allows subscribers to browse and schedule shows while on-the-go. If Blockbuster can increase its MediaPoint catalog and flip the switch on HD, it could gain some ground in an increasingly crowded online video market.

Jinni Helps You Pick The Perfect Flick

by Jason Kincaid

Movies are easier to access than ever, but many of us still struggle with the age old question, “What to watch?” The days of milling around Blockbuster may be gone for many people, but most cable boxes and online movie stores offer little in the way of movie recommendations. Jinni, a new startup launching today in private beta, is looking to help. The site has compiled an index of 10,000 movies and television shows that can be searched using natural language. TechCrunch readers can grab one of 500 exclusive invitations by registering here.

The site has created what it calls “The Movie Genome” - a database of movies tagged by a team of humans aided by a computer algorithm, with attributes spanning fifty categories. The database is reminiscent of Pandora’s Music Genome Project (which is also sorted by human professionals), though it is significantly smaller at this point. Users can either search for movies based on a manual search, browse through movies by their attributes, or can generate recommendations after completing a brief test that determines their movie personality. After finding a movie or show they’re interested in, users can buy or rent them (or in some cases, watch them free) through a number of linked services, including Hulu, Amazon, and Netflix.

In practice the search seems to work well. Each match is visually displayed in a grid as a thumbnail, with the most relevant matches emphasized with larger images. This style makes it easier to quickly identify movies you might be interested in, and also makes false matches less jarring.

Jinni will see heavy competition from existing movie sites like Netflix, which have invested years into developing accurate recommendation algorithms (Netflix even offers a $1 million Prize if anyone can best its algorithm). But Jinni has a fun, intuitive interface and seems to work well, so it may be able to carve out its own slice in the market. Other players in this space include Flixter, which offers social recommendations and TheFilter, which launched movie recommendations earlier this year.

Netflix finally brings 'Watch Instantly' to Macs via Silverlight

by Joshua Topolsky,

In a move that seemed like it would never, ever, ever happen, Netflix has finally managed to bring its streaming video technology (and decent library) to Macs everywhere, thanks to Microsoft's Flash-esque also-ran, Silverlight. It seems that the software will allow the rental house to safely DRM its content where ever it goes via Redmond's Play Ready, thus leaping the hurdle that has kept some 12,000 movies and TV shows off of non-PC systems. Netflix claims that the new implementation in Silverlight provides "breakthrough navigation for fast-forward and rewind," though fails to indicate exactly when this is all being rolled out (we assume immediately). Unfortunately for super-duper late adopters, the software will only work with Intel-based Macs, so if you've been holding onto a G3 for dear life, here's one more reason to finally can it, along with your Xbox 360 HD DVD player, Von Dutch trucker cap, and gas-guzzling Escalade. Full PR after the break.

NETFLIX BEGINS ROLL-OUT OF 2ND GENERATION

MEDIA PLAYER FOR INSTANT STREAMING

ON WINDOWS PCs AND INTEL MACS

Based on Microsoft Silverlight, New Player Features Enhanced Dynamic Streaming, First-Time Use for Macs and

Breakthrough Navigation for Fast-Forward and Rewind

LOS GATOS, Calif., October 27, 2008 – Netflix, Inc. (NASDAQ: NFLX), the world's largest online movie rental service, today announced it has begun the deployment of Microsoft Silverlight to enhance the instant watching component of the Netflix service and to allow subscribers for the first time to watch movies and TV episodes instantly on their Intel-based Apple Macintosh computers. The deployment, which will initially touch a small percentage of new Netflix subscribers, is the first step in an anticipated roll-out of the new platform to all Netflix subscribers by the end of the year.

Silverlight is designed for delivery of cross-platform, cross-browser media experiences inside a Web browser. It is expected that Netflix members who watch movies and TV episodes instantly on their computers will enjoy a faster, easier connection and a more robust viewing experience with Silverlight, due to the quality built directly into the player. Among the viewing enhancements with the new player is a breakthrough in timeline navigation that vastly improves the use of fast-forwarding and rewinding. The new Netflix player takes advantage of Play Ready DRM, which is built into Silverlight, for the playback of protected content on both Windows-based PCs and on Macs. That had not been possible with previous generation technologies.

"Silverlight with Play Ready offers a powerful and secure toolkit for delivery of dynamic streaming, which offers faster start-up, and higher quality video, adapted in real time to users' connection speeds," said Netflix Chief Product Officer Neil Hunt. "Members who enjoy watching movies and TV episodes from the growing library of choices that can be instantly streamed at Netflix will be thrilled with this next generation improvement of access and quality, on a broader range of platforms, including Intel Macs and Firefox."

Microsoft unveils new Xbox Live 'experience'

Posted by Daniel Terdiman

In the new Xbox Live experience, much of the interface is designed to cascade horizontally across the screen, allowing users to see a wide selection of choices. On HD TVs, users will be able to see even more information, given the wider screen.

(Credit: Microsoft)

Whether you're one of the legions of hard-core Xbox players or someone who's only played with the game console casually, get ready for an all-new Xbox Live.

Since the first announcement of the new approach to the massively popular service at E3 in July, some longtime fans have fretted that Microsoft is morphing it into a place for purely casual players at the expense of those for whom Xbox Live is nearly as much a home as where they actually live.

Well, based on a demo I got recently of the (not quite finished) new version of Xbox Live, I'd have to say, fret no more.

Dubbed the new "Xbox Live Experience," this re-launched service--which is rumored to be launching in November, but which Microsoft will only say is due "before Christmas"--really does seem to have something for everyone: an easy-to-use graphical interface complete with deeply customizable avatars that casual players will enjoy, and all kinds of new functionality that will actually reward the dedication of the hard-core Xbox player.

With the new Xbox Live interface, users will be able to see all information relevant to their account in a simpler, easier-to-understand format.

(Credit: Microsoft)

Microsoft readily admits that there may be a bit of a transition period for those core players--a time during which a lot of griping might be heard--but the company fully expects a gradual realization on the part of those players that the new service takes the existing Xbox Live and adds all kinds of new community and interactive functions to it.

And, again, I would have to agree.

To date, the Xbox Live interface has been based on what are called blades, essentially pages of information stacked on top of each other in such as way as to maximize the number of choices Xbox Live players have and the directions in which they can go. They can see lists of games to play, choose to watch a movie, go into a section to buy add-ons for games, and so on. The new interface largely does away with the blades era and moves into a more advanced motif of full windows that spread out on the screen and stretch off into the distance, allowing users to shuttle through them, left to right or right to left.

But that's getting a little too far ahead.

All about avatars
Clearly, with this new interface, Microsoft is going for both Sony's and Nintendo's jugulars, hoping to create a community experience that lures gamers of every level of experience, every age group, both genders, and even those for whom watching movies through the Netflix option that Microsoft will make available at some point is as close as they come to playing games.

Any discussion of the new Xbox Live, though, has to start with the service's new avatars function.

The avatar editor in the new Xbox Live lets users choose many different styles, and to modify those styles as often as they like.

(Credit: Microsoft)

To begin with, players can choose an avatar from a large selection that run onto the screen looking like a group of school kids, each dressed differently and sporting diverse hair styles and skin color. Don't like that group? Move on to the next one. And on and on, until you find one you like. Each group is presented randomly, and within the group, individual avatars seem to try to get your attention by jumping up and down and raising their hand. Don't worry, they won't be too disappointed if you choose someone else.

Once you pick your avatar, you go into a low-end character editor where you can outfit your new persona with new clothing, hair, accessories and the like. To those familiar with Nintendo's Mii avatars or those from the countless virtual worlds out there, this will feel like old hat.

But Microsoft doesn't think it is copying Nintendo or anyone else. Rather, it takes the view that it is just adjusting to what the marketplace wants.

And customizable avatars creates an opening for an extension to the traditional Xbox achievements system, in that games can now give out things like clothes, tattoos and other add-ons that will help users distinguish their avatars from the millions of others on the system.

Either way, once you've picked your avatar, you are ready to jump into the new Xbox Live.

When choosing an avatar, the choices come running onto the screen, one group at a time. Some will jump up and down to try to get users' attention.

(Credit: Microsoft)

It's not clear yet, according to Albert Penello, director of marketing for Microsoft's platform and Xbox Live group, whether the avatars will find their way into games. Even if they do, it would likely be something that would happen at the more casual end of the spectrum.

"I doubt Halo would incorporate avatars," Penello said.

Still, one obvious question is whether games like Halo will reward players with things like Master Chief's armor as new avatar accessories, and Penello acknowledged that that is a frequent query from users.

With the existing Xbox Live, a big fan favorite was what are called themes, essentially imagery from games like Halo 3 or Gears of War that are used to customize the Live experience.

Now, these themes will be incorporated in a new way, said Rob Gruhl, a senior strategist with Microsoft's game platform strategy team, who showed me how players can essentially have large game-themed wallpaper that sits in the background of their Xbox Live screen.

Party time
Another big element of the new iteration of Xbox Live is what are called "parties." This, it turns out, is a crucial piece of the whole puzzle, because it's what will allow players to maximize the way they play games together with their friends.

One feature will be that parties will make it easy for players to communicate with a group of friends, using a voice or text messaging system. And even if a group isn't actively playing together, friends can see others' profiles, showing what they're playing and whether it's possible to join games in progress.

"It's an example of a feature that doesn't feel core," said Penello, addressing more concerns from longtime Xbox users that the parties feature is an attempt to turn the service over to casual users, "but I think it's something that core gamers are really going" to like.

That's in part, Gruhl added, because of what is known as party channels, which actually enable the communications between members of a party, regardless of whether they're playing the same game or not.

One benefit of this is that friends can set up a party channel that will allow them to, say, jointly go into a multiplayer game and communicate amongst themselves, even as they play against other players.

The party channel is just one example of a larger channels system that is now an important piece of the larger system, and which makes up what is known as Spotlight. This is basically a view into the very wide range of things that are going on within Xbox Live at any time as viewed through a series of channels.

These channels, then, will show things like events that are coming up in the system, as well as the marketplace, where players can buy all kinds of new things--including a new community games channel that appears in the marketplace. These are games made by the community using Microsoft's XNA Studio development software.

There's also a way, using Spotlight, to search for games, and to sort by genre, so that players can easily see, for example, all the racing games currently in their system or currently available through the marketplace.

And the system is optimized so that all information surrounding a single game will appear on a single game page, where players will be able to see who's playing, what live features are offered, any videos that are available, and any new downloads that have come out.

All told, these game pages will show everything related to the individual games, including material that players don't yet have, allowing them to easily buy those new things--and making it easier for Microsoft to generate revenue through additional transactions.

Yet another new feature is that Xbox Live users will be able to instigate changes to their system through Xbox.com. That means that if players see some new accessory or game update they want while they are away from their Xbox console, but are using the Internet on a computer, they can order what they want and it will queue up. When they return to their Xboxes, they don't have to try to remember what it was they wanted.

This will also allow content developers to create a long tail, said Gruhl, because it will allow them to promote their content on Web sites and drive people to Xbox.com, where they can order it.

And lastly, the new Xbox Live features a simple guide mechanism that gives very quick access to almost everything the system has to offer, and which mimics the blade motif of the existing Xbox Live.

This is basically a quick start dashboard that allows players to jump instantly to what they want, obviating the need, if they're in a hurry, to go through the larger Xbox Live experience. Choices are more limited in what they can do, but most of what they need to navigate is available here.

For Microsoft, then, the new Xbox Live is an attempt to bridge the entire gaming audience, from the most casual, fortysomething woman, to the most hard-core, teen male Halo addict.

Whether that will work is, of course, still to be determined, but Microsoft thinks it got off to a good start by recently lowering the price of the most basic Xbox to $199, a move it says has boosted sales significantly.

Microsoft clearly has to work on how it messages the changes in the new Xbox Live, due to the worries of its core audience. But from what I've seen, I think anyone who uses the system for a while will grow to like what they see.

Daniel Terdiman is a staff writer at CNET News covering games, Net culture, and everything in between. E-mail Daniel.