Communications

Disney Will Price Streaming Service At $5 Per Month, Analyst Says (fiercecable.com) 92

Earlier this month, Disney announced it would end its distribution deal with Netflix and launch its own streaming service in 2019. Now, according to MoffettNathanson analyst Michael Nathanson, we have learned that Disney's new streaming service will be priced around $5 per month in order to drive wider adoption. FierceCable reports: Nathanson said that the new Disney streaming service and the upcoming ESPN streaming service need a clear distinction. The ESPN service will likely test different prices as it prepares ESPN to be ready to go fully over-the-top, according to the report, but the Disney service is about building asset value instead of taking licensing money from SVOD deals. At $5 per month in ARPU, Nathanson sees revenues from the Disney streaming service ranging from $34 million to $38 million in the first year and more than $230 million by year three. But with the loss of Netflix licensing revenues and accelerated marketing costs for launching the new service, Nathanson predicted Disney's losses will increase by about $200 million to $425 million per year. If Disney's new streaming service does end up costing around $5 per month, could you justify paying for it?
Businesses

A 'Netflix Tax'? Yes, and It's Already a Thing in Some States (usatoday.com) 130

An anonymous reader shares a report: Your monthly bill for Netflix, Amazon, Hulu and other streaming entertainment services could go up soon as states such as Illinois try to find ways to offset declining sales taxes and other revenue shortfalls. Chicago, Pennsylvania and Florida have already passed a so-called Netflix tax, and cities such as Pasadena, Calif. have broached the issue. These taxes can translate to additional fees of less than $1 each month to consumers. But over the months -- and tacked onto multiple streaming subscriptions -- they might add up to $50 or more each year. Netflix, consumer tax groups and tech trade organizations have voiced their opposition to such taxes, warning they can be unfair and deter innovation. Some opponents have initiated legal challenges, and at least one state has shelved plans after a court decision. But state and local governments aren't likely to halt fresh efforts as falling pay-TV subscriptions and video rentals mean there's less opportunity to tax cable bills or charge sales tax at the cash register.
Businesses

Hollywood, Apple Said To Mull Rental Plan, Defying Theaters (bloomberg.com) 74

An anonymous reader shares a report: Movie studios are considering whether to ignore the objections of cinema chains and forge ahead with a plan to offer digital rentals of films mere weeks after they appear in theaters, according to people familiar with the matter. Some of the biggest proponents, including Warner Bros and Universal Pictures, are pressing on in talks with Apple and Comcast on ways to push ahead with the project even without theater chains, the people said. After months of negotiations, the two sides have been unable to arrive at a mutually beneficial way to create a $30 to $50 premium movie-download product. The leading Hollywood studios, except for Walt Disney, are eager to introduce a new product to make up for declining sales of DVDs and other home entertainment in the age of Netflix. They have discussed sharing a split of the revenue from premium video on demand, or PVOD, with the cinema chains if they give their blessing to the concept. But the exhibitors have sought a long-term commitment of as much as 10 years for that revenue split, which the studios have rejected, the people said. Deals with potential distributors such as Apple and Comcast could be reached as soon as early next year to sell digital downloads of major films as soon as two weeks after they debut in theaters, the people said.
Television

Netflix Plans To Spend $7 Billion On Content In 2018 (streamingobserver.com) 97

According to the Streaming Observer, Netflix plans to increase its budget by $1 billion dollars over the next year and spend over $7 billion on content in 2018. Previously, the company paid $6 billion in 2017 and $5 billion in 2016. From the report: While the internet freaks out about Disney ending its streaming agreement with Netflix, the company continues to forge ahead signing high-profile talent and throwing an enormous budget at its original programming. Just days after the Disney turmoil, Netflix's visionary Chief Content Officer Ted Sarandos stated that the streaming leader plans to increase its budget by $1 billion dollars over the next year. As of now, Netflix currently has $15.7 billion in outstanding obligations in deals for new series and films over the next few years. With such an astronomically-large budget, media analysts are already beginning to wonder if Netflix is "rescuing" or "ruining" Hollywood by creating such a singular creator-producer-distributor model. Sarandos counters those claims, however, stating that Netflix is merely on the forefront of what's already a growing trend throughout the media industries: "I would say that the relationship between studios and networks has always been that of a frenemy. Everyone is doing some version of it already. They just have to make a decision for their companies, their brands and their shareholders on how to best optimize the content. We started making original content five years ago, betting this would happen."
Television

YouTube Has An Illegal TV Streaming Problem (mashable.com) 119

An anonymous reader quotes a report from Mashable: Most people turn to Netflix to binge watch full seasons of a single TV show, but there could be a much cheaper way: YouTube. You might be surprised to learn that you can watch full episodes of popular TV shows on YouTube for free, thanks to a large number of rogue accounts that are hosting illegal live streams of shows. Perhaps the most shocking thing about these free (and very illegal) TV live streams might even make their way into your suggested video queue, if you watch enough "random shit" and Bobby Hill quote compilations on the site, as Mashable business editor Jason Abbruzzese recently experienced. He first noticed the surprisingly high number of illegal TV streaming accounts on his YouTube homepage, which has tailored recommended videos based on his viewing habits. Personalized recommendations aren't exactly new -- but the number of illegal live streams broadcasting copyrighted material on a loop was a shocker. When we looked deeper into the livestreams, the number we found was mindblowing. Many of these accounts appear to exist solely to give watchers an endless loop of their favorite shows and only have a few other posts related to the live streamed content. "YouTube respects the rights of copyright holders and we've invested heavily in copyright and content management tools to give rights holders control of their content on YouTube," a YouTube spokesperson told Mashable in an email. "When copyright holders work with us to provide reference files for their content, we ensure all live broadcasts are scanned for third party content, and we either pause or terminate streams when we find matches to third party content."
Businesses

Apple Is Bringing a Billion Dollar Checkbook To Hollywood and Wants To Buy 10 TV Shows (recode.net) 79

Apple is officially open for business in Hollywood. From a report: The company is telling content makers it wants to spend $1 billion on its own stuff over the next year. That's music to studios' ears, and a tune they have been expecting for some time -- especially after Apple hired two top Sony TV executives in June. We still don't know what Apple wants to do with that content: The Wall Street Journal says Apple wants to make up to 10 "Game of Thrones" -- or "House of Cards"-scale shows, but that's not enough to launch a full-scale subscription service.
Software

App Developers Should Charge More If They Want People To Buy Subscriptions, Suggests Report (theverge.com) 50

A new report from Liftoff, a Silicon Valley-based mobile app marketing and retargeting firm, says that subscription-based apps may do better if developers charge a higher price for services, rather than setting prices too low to lure users in initially. The Verge reports: The Liftoff report, which analyzed data gathered between June 2016 and June 2017, categorized app subscriptions into low-cost monthly subs ($0.99 to $7), medium ($7 to $20), and high-cost subs ($20 to $50), while also factoring the cost of acquisition per customer. The company found that apps in the medium price range had the highest conversion rate -- 7.16 percent -- and the lowest cost to acquire a subscriber, at just over $106 dollars. This was five times higher than the rate of people who subscribed to apps when the apps were in the low-cost category. This may partly be because streaming media apps, like Netflix and Spotify, have already conditioned people to pay around $10 a month for services. But it also might be attributable to the sunk cost fallacy, Liftoff says: the "cognitive bias people have that makes them stay the course because they have already spent time or resources on it." The report also examines apps that fulfill "need states," like dating apps or cloud services. These have the potential to offer services that customers are willing to pay for, again and again. But, according to Liftoff, utility apps have a much higher install-to-subscriber rate compared to dating apps. Blame those who eventually find love?
Businesses

Netflix Co-Founder's Crazy Plan: Pay $10 a Month, Go to the Movies All You Want (bloomberg.com) 274

Mitch Lowe, a founder of Netflix, has a crazy idea. Through his new startup MoviePass, he wants to subsidize our film habit, letting us go to the theater once a day for about the price of a single ticket. From a report: Lowe, an early Netflix executive who now runs a startup called MoviePass, plans to drop the price of the company's movie ticket subscriptions on Tuesday to $9.95. The fee will let customers get in to one showing every day at any theater in the U.S. that accepts debit cards. MoviePass will pay theaters the full price of each ticket used by subscribers, excluding 3D or Imax screens. MoviePass could lose a lot of money subsidizing people's movie habits. So the company also raised cash on Tuesday by selling a majority stake to Helios and Matheson Analytics, a small, publicly traded data firm in New York. [...] Theater operators should certainly welcome any effort to increase sales. The top four cinema operators, led by AMC Entertainment, lost $1.3 billion in market value early this month after a disappointing summer.
Movies

Netflix Discussing Keeping Streaming Rights To Disney's Marvel, Star Wars Films (reuters.com) 52

An anonymous reader quotes a report from Reuters: Netflix is in "active discussions" with Disney about keeping Marvel and "Star Wars" films after 2019, when new Disney and Pixar movies will stop appearing on the streaming service, a senior executive said late on Thursday. Disney announced on Tuesday that it was pulling new Disney and Pixar films from Netflix, starting with new releases in 2019. It will start putting the movies on a new Disney-branded online service that year. Disney Chief Executive Officer Bob Iger told analysts the company had not yet decided where it would distribute superhero films from Marvel Studios and movies from "Star Wars" producer Lucasfilm, which the company owns, at that time. Netflix is still in discussions with Disney about retaining rights to stream Marvel and Lucasfilm releases after 2019, Chief Content Officer Ted Sarandos told Reuters.
Security

Password Power Rankings: a Look At the Practices of 40+ Popular Websites (helpnetsecurity.com) 127

Orome1 shares a report from Help Net Security: Nothing should be more important for these sites and apps than the security of the users who keep them in business. Unfortunately, Dashlane found that that 46% of consumer sites, including Dropbox, Netflix, and Pandora, and 36% of enterprise sites, including DocuSign and Amazon Web Services, failed to implement the most basic password security requirements. The most popular sites provide the least guidance when it comes to secure password policies. Of the 17 consumer sites that failed Dashlane's tests, eight are entertainment/social media sites, and five are e-commerce. Most troubling? Researchers created passwords using nothing but the lowercase letter "a" on Amazon, Google, Instagram, LinkedIn, Venmo, and Dropbox, among others. GoDaddy emerged as the only consumer website with a perfect score, while enterprise sites Stripe and QuickBooks also garnered a perfect score of 5/5. Here's a screenshot of how each consumer/enterprise website performed.
Crime

UK Wants To Criminalize Re-Identification of Anonymized User Data (bleepingcomputer.com) 120

An anonymous reader writes: European countries are currently implementing new data protection laws. Recently, despite leaving the European Union, the United Kingdom has expressed intent to implement the law called General Data Protection Regulation. As an extension, the UK wants to to ban re-identification (with a penalty of unlimited fines), the method of reversing anonymization, or pointing out the weakness of the used anonymisation process. One famous example was research re-identifying Netflix users from published datasets. By banning re-identification, UK follows the lead of Australia which is considering enacting similarly controversial law that can lead to making privacy research difficult or impossible. Privacy researchers express concerns about the effectiveness of the law that could even complicate security, a view shared by privacy advocates.
Movies

Disney Ditching Netflix Keeps Piracy Relevant (torrentfreak.com) 263

Yesterday, Disney announced its intent to pull its movies from Netflix and start its own streaming service. This upset many users across the web as the whole appeal of the streaming model becomes diluted when there are too many "Netflixes." TorrentFreak argues that "while Disney expects to profit from the strategy, more fragmentation is not ideal for the public" and that the move "keeps piracy relevant." From the report: Although Disney's decision may be good for Disney, a lot of Netflix users are not going to be happy. It likely means that they need another streaming platform subscription to get what they want, which isn't a very positive prospect. In piracy discussions, Hollywood insiders often stress that people have no reason to pirate, as pretty much all titles are available online legally. What they don't mention, however, is that users need access to a few dozen paid services, to access them all. In a way, this fragmentation is keeping the pirate ecosystems intact. While legal streaming services work just fine, having dozens of subscriptions is expensive, and not very practical. Especially not compared to pirate streaming sites, where everything can be accessed on the same site.
Communications

Disney To Pull Its Movies From Netflix and Start Its Own Streaming Service (theverge.com) 269

Disney announced today that it will end its distribution deal with Netflix and launch its own streaming service in 2019. "The move is a real blow to Netflix, which secured a valuable streaming deal with Disney back in 2012 -- before streaming had really taken off," reports The Verge. "The deal only kicked into effect last year, so Netflix is barely seeing any benefit here." From the report: Netflix won't lose its Disney movies right away. Disney says it plans to cut Netflix off starting with the studio's 2019 films, and Netflix says it'll be able to keep all the Disney movies it gets through the end of that year. That means Netflix should be able to stream the next two Star Wars movies, but it'll miss out on the new trilogy's final installment. "We continue to do business with the Walt Disney Company on many fronts, including our ongoing deal with Marvel TV," said a spokesperson for Netflix. Disney's streaming service will be built off technology from BAMTech, the MLB-founded video streaming platform. Disney was already a major investor in BAMTech, and today it's making an even bigger investment -- of $1.58 billion -- giving it a 75 percent stake in the company. The acquisition still requires regulatory approval. The Disney-branded streaming service will be the "exclusive home in the U.S. for subscription-video-on-demand viewing," and will kick off with films including Toy Story 4 and the sequel to Frozen. "Original movies, TV shows, [and] short-form content" will be added to the service, and it'll be filled out with older movies from Disney and Pixar's catalog and shows from Disney's TV channels. The report also notes Disney plans to launch a streaming service exclusively for ESPN, targeted for launch early next year. "Disney is promising about '10,000 live regional, national, and international games and events a year,' with individual sports packages available as well," reports The Verge.
Television

David Letterman Returning to TV With Netflix Talk Show (hollywoodreporter.com) 70

Lesley Goldberg, writing for The Hollywood Reporter: Two years after signing off CBS' The Late Show, David Letterman is returning to the small screen. The longest-serving host in U.S. late-night TV history is set to topline a new talk show for Netflix. The untitled six-episode series will premiere in 2018. Unlike The Late Show, each hourlong episode of the Netflix series will be prerecorded and feature Letterman conducting longform conversations with a singular guest as well as exploring topics on his own -- outside of the studio. A guest list has not yet been revealed. "I feel excited and lucky to be working on this project for Netflix. Here's what I have learned, if you retire to spend more time with your family, check with your family first. Thanks for watching, drive safely," Letterman said.
Businesses

Netflix's First Takeover: a Comics Firm (bbc.com) 37

Netflix announced today that it is acquiring Mark Millar, a well-known name in the world of comics. As part of the deal, the on-demand streaming company said, it will be creating original movies and TV shows from the content. It's Netflix's first acquisition. From a report: Millarworld, founded by Mark Millar from Coatbridge, includes his portfolio of characters and stories such as Kick-Ass, Kingsman, and Old Man Logan. Mr Millar said he was still "blinking" over the news. He said it was only the third time a comic book purchase on this scale had ever happened, with Warner Bros buying DC Comics in 1968, and Disney buying Marvel in 2009. Mr Millar, who lives in Glasgow, started Millarworld as a creator-owned comic-book company nearly 15 years ago. He runs the company with his wife Lucy Millar. It is the first ever company acquisition in Netflix's history. The terms of the transaction were not disclosed. Mr Millar said: "I'm so in love with what Netflix is doing and excited by their plans. Netflix is the future and Millarworld couldn't have a better home."
Television

Millennials Unearth an Amazing Hack to Get Free TV: the Antenna (wsj.com) 564

From a report on WSJ: Dan Sisco has discovered a technology that allows him to access half a dozen major TV channels, completely free. "I was just kind of surprised that this is technology that exists (alternative source)," says Mr. Sisco, 28 years old. "It's been awesome. It doesn't log out and it doesn't skip." Let's hear a round of applause for TV antennas, often called "rabbit ears," a technology invented roughly seven decades ago, long before there was even a cord to be cut, which had been consigned to the technology trash can along with cassette tapes and VCRs. The antenna is mounting a quiet comeback, propelled by a generation that never knew life before cable television, and who primarily watch Netflix , Hulu and HBO via the internet. Antenna sales in the U.S. are projected to rise 7 percent in 2017 to nearly 8 million units, according to the Consumer Technology Association, a trade group. Mr. Sisco, an M.B.A. student in Provo, Utah, made his discovery after inviting friends over to watch the Super Bowl in 2014. The online stream he found to watch the game didn't have regular commercials -- disappointing half of his guests who were only interested in the ads. "An antenna was not even on my radar," he says. He went online and discovered he could buy one for $20 and watch major networks like ABC, NBC, Fox and CBS free.
Facebook

The Chiefs of Facebook, Google and Other Tech Giants Aren't Committing To Testify To the US Congress On Net Neutrality (recode.net) 46

Amazon, Facebook, Google and Netflix -- along with their telecom industry foes -- have not committed to sending their chief executives to testify before the U.S. Congress in September on the future of net neutrality. From a report: Not a single one of those companies told the powerful House Energy and Commerce Committee, which is convening the hearing, that they would send their leaders to Washington, D.C., in the coming weeks, even at a time when the Trump administration is preparing to kill the open internet rules currently on the government's books. The panel initially asked those four tech giants, as well as AT&T, Charter, Comcast and Verizon, to indicate their plans for attendance by July 31. Now, the committee is pushing back its deadline indefinitely, as it continues its quest to engage the country's tech and telecom business leaders on net neutrality. "The committee has been engaging in productive conversations with all parties and will extend the deadline for response in order to allow for those discussions to continue," a spokesman said.
The Internet

House Panel Wants Google, Facebook, AT&T CEOs To Testify On Internet Rules (reuters.com) 35

The chairman of the U.S. House Energy and Commerce Committee on Tuesday asked the chief executives of Alphabet, Facebook, Amazon.com, AT&T, Verizon Communications and other companies to testify at a Sept. 7 hearing on the future of net neutrality rules. From a report: The U.S. Federal Communications Commission is considering tossing out 2015 Obama administration net neutrality rules that reclassified internet service like a public utility. The rules bar providers from blocking, slowing or offering paid prioritization of websites. Many internet providers want Congress to step in and write permanent rules. Other chief executives asked to testify include the heads of Comcast, Netflix and Charter. Some companies including Facebook said they were reviewing the letter but none immediately said if they will testify.
Businesses

Push Notifications From Popular Apps Are Becoming Increasingly Useless And Annoying (wired.com) 169

David Pierce, writing for Wired: Push notifications are ruining my life. Yours too, I bet. Download more than a few apps and the notifications become a non-stop, cacophonous waterfall of nonsense. Here's just part of an afternoon on my phone:
"Hi David! We found new Crown jewels and Bottle caps Pins for you!"
"Everyone's talking about Bill Nye's new book, Everything All at Once. Read a free sample."
"Alex just posted for the first time in a while."
I get notifications when an acquaintance comments on a stranger's Facebook posts, when shows I don't care about come to Netflix, and every single day at 6 PM when the crossword puzzle becomes available. Recently, I got a buzz from my close personal friends at Yelp. "We found a hot new business for you," it said. I opened the notification, on the off chance that Yelp had finally found the hot new business I've been waiting for. It did not. So I closed Yelp, stared into space for a second, and then opened Instagram. Productivity over. Over the last few years, there's been an increasingly loud call for a re-evaluation of the relationship between humans and smartphones. For all the good that phones do, their grip on our eyes, ears, and thoughts creates real and serious problems. "I know when I take [technology] away from my kids what happens," Tony Fadell, a former senior VP at Apple who helped invent both the iPod and the iPhone, said in a recent interview. "They literally feel like you're tearing a piece of their person away from them. They get emotional about it, very emotional. They go through withdrawal for two to three days." Smartphones aren't the problem. It's all the buzzing and dinging, endlessly calling for your attention.

Bug

DNS Lib Underscore Bug Bites Everyone's Favorite Init Tool, Blanks Netflix (theregister.co.uk) 292

Reader OneHundredAndTen writes and shares a report: Systemd doing what it does best. From a report on The Register: A few Penguinistas spent a weekend working out why they can't get through to Netflix from their Linux machines, because when they tried, their DNS lookups failed. The issue emerged over the weekend, when Gentoo user Dennis Schridde submitted a bug report to the Systemd project. Essentially, he described a failure within systemd-resolve, a Systemd component that turns human-readable domain names into IP addresses for software, like web browsers, to connect to. The Systemd resolver couldn't look up Netflix's servers for Schridde's web browser, according to the report. In his detailed post, Schridde said he expected this to happen: ipv6_1-cxl0-c088.1.lhr004.ix.nflxvideo.net gets resolved to 37.77.187.142 or 2a00:86c0:5:5::142. When in reality, that wasn't happening, so Netflix couldn't be reached on his box. His speculation that libidn2, which adds internationalised domain names support to the resolver, was at fault turned out to be accurate. Rebuilding Systemd without that library cleared the problem.

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