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Tag Archives: Netflix Inc.
Hollywood entertainment sales declined over the last quarter, according to a report by Digital Entertainment Group. Sales of DVDs, Blu-ray discs, and other packaged goods declined by 16.3 percent. Digital rentals showed meager growth, 0.29 percent. The only significant positive growth was seen in the area of DVD-by-mail and video-on-demand services, which grew by 24 percent.
Netflix customers’ dissatisfaction with the company’s recent price hikes is becoming all the more apparent with its forecast earnings and revenue for the third quarter. Netflix announced that its customer deflections and cancellations would take away from its subscriber count, and it would close the third quarter with only a slightly higher number than the previous quarter.
Hulu, the online video service that streams popular TV shows from ABC, NBC, and Fox, is reportedly shopping around for potential bidders, according to Dan Rayburn, an analyst with Frost and Sullivan. Rayburn says Hulu and its owners have been meeting with suitors from Yahoo, Google, and Apple, and are seeking as much as $2 billion. While none of these meetings have been independently confirmed, most of the rumors say Apple will be the company to purchase Hulu. The belief is that acquiring Hulu would bolster Apple’s iTunes Store and help it compete with Netflix’s subscription streaming service with one of its own. “Content is king,” says James McQuivey, an analyst with Forrester Research. “People spend four to five hours a day watching TV. If you get them to your platform, it immediately becomes relevant.” Hulu currently streams TV episodes and movies on many devices, including the Roku, Xbox 360, iPad, and iPhone through its monthly subscription service Hulu Plus. An alliance with Apple might mean pulling Hulu off other devices, but Rayburn asks, “then why spend $2 billion to get it?” Hulu says it will have one million Hulu Plus subscribers by year’s end. Read more from USA Today.
Customers are up in arms! Or at least, media outlets are up in arms over Netflix’s announced split of its streaming service and by-mail disk service into two separate subscriptions starting at $7.99 a month each. For users who currently get one disk at a time plus streaming, that translates to a near-60 percent price hike, from $9.99 to $15.98 per month.