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ExtraTorrent.cc > Articles > NetFlix Streaming Deemed Threat To Hollywood

NetFlix Streaming Deemed Threat To Hollywood

NetFlix Streaming Deemed Threat To Hollywood

Added: Sunday, January 3rd, 2010
Category: Recent Headlines Involving File Sharing > Ridiculous Criminal Trials
Tags:File Sharing, Extra Torrent, p2p, Peer To Peer, BitTorrent, utorrent, bitcomet, extratorrent.com, bittorrent protocol
There was once a time when if you wanted to view or "rent" your media such as popular films, music, or games, you would either have to pay to see it in a theater, buy it once it hit retail for full price, or rent it from your local BlockBuster Video. With the arrival of new and creative ideas such as NetFlix there became a new source of securing the world's media in advance directly delivered to your door, without you ever having to leave home. Then as we evolved beyond the grasp of the formerly new idea, people demanded a faster way to view what they want to see, without leaving home, at an affordable price. Fast forward to 2010, and we have a luxurious new industrial complex built entirely around online media purchases, rentals, and downloads.


Many companies in the modern world allow content to be purchased online with the intent to distribute via digital download, online streaming, or purchase online and mail to home buying of goods. Now, with the surge in the capabilities that technology has created for both retailers and internet service providers, there is a battle of the new age and the old when it comes to online content sharing.

NetFlix began as a small online competitor delivering video discs to your door through the postal system. It surpassed most any competition with ease, and in just last year watched it's profit margins increase by 22% alone. With such an increase in revenue, the company intended to create a better business model to serve the customers whom demanded to get what they paid for fast, and efficiently.

With epic success stories such as iTunes, and the increasing sales of ringtones, apps, and other digital media, NetFlix knew that digital distribution was something they had to place into their outline for the next year. They realized what potential was awaiting to be seized if only someone would actually dedicate the time and effort to pursue the technology available to them.

Hollywood however, have stated for years that digital distribution would become a "threat to their ecosystem", by changing how it's operated for nearly a quarter century. Movies have gone from theater releases, to rental and retail, to pay-per-view television, and to subscription television services. They have been extremely pessimistic about depriving their already thriving style of operation from the ways of the old which they are used to operating upon.

This same type of dispute over moving to a new means of digital distribution, is what creates the modern "piracy" which we see today. If the companies would take advantage of all the forms of file sharing that is readily available over the world, then they would not only increase their profits ten-fold but possibly reach an entire new customer base that once before they had never expected.

NetFlix, is attempting to persuade the Hollywood production behemoths into moving into a new era of digital content available at the click of a mouse. They believe, that streaming video rentals online will not only be hugely successful but will remove the burdens and costs of shipping, damaged materials, producing hard goods, and save the environment by not forcing factories to meet high end demands directly from the production line.

In a bold move to create a new market, NetFlix last year began streaming content directly to "NetFlix capable" devices, such as PlayStation 3 consoles, Xbox 360 consoles, certain Samsung, Sony, Bravia, and LG BluRay players and television sets, as well as several other devices. It launched with astounding success, and fans around the world now bolt around their favorite device for a "family movie night" via a NetFlix capable product.

Some however, have threatened to sue and prevent this new found streaming from spreading. Even the CEO of Sony North America, Michael Lyton, has stated that he "Doesn't see anything good coming from the internet", a statement which is shocking considering the financial prosperity which could be capable if the entertainment giants were willing to co-exist with a digital world.

Instead, they'd rather have their products readily downloaded for free through various file sharing services, all of which they see absolutely zero profit from. Amazing that they could come to such a conclusion, especially considering the success of other online digital content stores.

"Everyone knows where the future is at, but not a soul is willing to pass on the keys to start up the car and get us there", states NetFlix Inc. Chief Content Officer Ted Sarandos. "We have to fight against their fear that we’ll destroy the ecosystem. We’re not destroying anything. We’re creating a new opportunity."

If only those in power from the entertainment giants could share the same visions as Mr. Sarandos, and many others who've tried before him. We could not only create a major global increase in entertainment sales, but force the internet service providers of the world to upgrade their networks, due to the new high demand in speed, reliability, and the massive amount of new customers they would be seeing flood the gates to be able to freely stream content online.

It's 2010 now, and we still have little to no "legal" online streaming available to every personal computer everywhere in the world. Maybe it will take ten years before the "old guard" of the entertainment industry passes the torch to the new breed of frontier. At the same time, that will be ten more years of constant online piracy running rampant due to the fact these industries do not want to change their product management methods.

Sad but true, it is a lose-lose situation for both the people of the world, and the industries who cry foul when piracy continues. For now, you must buy a specific product, receiver, device, or console, in order to share the NetFlix streaming capabilities, but in the future, it could be possible that NetFlix and similar service are allowed to stream freely all over the globe to anyone whom is connected to the internet, without regulation, without the threat of a lawsuit, and with the happiness of the people in their minds, as they move forward. Only time will tell.

January 3rd, 2009

Posted by:  Blocked
Date:  Sunday, January 3rd, 2010

Comments (16) (please add your comment »)

posted by Site FriendET lovermen (2010-01-03 06:59:31)
JustAFriendFromLA avatarWonderful report Obscene. It's really a sad but true state we're in, when these big whigs hold their company in the palms of their hands, and don't realize the untapped fortunes they can readily access if only they'd allow new releases to stream. So many that live in the past. This unlike the Beta vs. VHS wars that happened in the 80's, not a format war. This is either keep up with the changes of technology, or step aside and allow those who know how to make people happy, do it. You couldn't have said it better than you did. Thank you once again for your thoroughness.

posted by (2010-01-03 11:26:32)
digster avatarnice read obs once again ur right

posted by (2010-01-03 12:11:36)
Sneak avatarExcellent article. It could be so much better if the movie industry would adapt there way of doing business. There is soo much more they could achieve if only the fat cats can't see past there own bank balances. No doubt they will just continue to try a screw as much money out of the consumer as possible and for as long as possible. Still, they do have to pay the Tom Cruise's and Brad Pitt's millions of dollars to star in one film and that has to come from somewhere.

posted by ET junkieET lovermenXbox (2010-01-03 13:13:29)
d321 avatarGood reading as usual obs, keep it up and thank-you.

posted by (2010-01-03 13:15:06)
KazzGirl avatarOnce again a great article xxxOBSCENExxx. Keep them coming. What really bugs me about the whole "how we release a movie thing" ie from the cinema to rental to retail to pay per view to then general TV, is that is great if you live in a major location! But what about if your like so many other people world wide who live in isolated locations. It has only been the last little while I have lived close to shops, let alone a cinema. For the last 20 or so years cinemas have been at the closest - 2 HRS DRIVE AWAY! Then it wasn't until 3 years ago I lived in an area that had paid TV. And if it was available it cost thousands to get hooked up. Major shops were over 2 hrs away, and in one location I lived in over 4. Okay so not so many people live in locations such as I have done when you look amongst the general population. But I figured we shouldn't miss out just because we live in isolated locations so I started to download heaps. I call it "out sourcing". If I could get movies we want to watch via legitimate downloads for video rental prices I would do it! I have no problems paying for what I want. BUT because some Hollywood boffin can't see past his ignorance of the great technology that could afford his company millions of dollars in profit, we all suffer. So I just turn the tables on their ignorance and out source what I want. Bugger 'em! This Michael Lyton is only about 50 or so so why can't he see that the internet is where the money is at? He is either really stupid or just plain ignorant. And if he isn't stupid - he is employing a pack of idiots to advise him. Whom ever sees the future trends in sales and harnesses their potential will become very rich indeed and this Ted Sarandos from NetFlix seems as though he is on the right track. Plus we all still like to go to the Cinema. There is something about the HUGE screen, LOUD sound and the smell of popcorn. But many of us would like to curl up on the couch in our pj's and just schlub it with a good romcom. And who wants to be seen going to a romcom? LOL

posted by Blocked (2010-01-03 13:35:44)
human avatarwhat the hell r u trying to do get Hollywood 2 take over p2p so it is not free. [If the companies would take advantage of all the forms of file sharing that is readily available over the world, then they would not only increase their profits ten-fold but possibly reach an entire new customer base that once before they had never expected.] what is that crap. but that is my view on it
SO do I get censored on this. lol with love to ET.

posted by (2010-01-03 14:08:36)
SnakeyB avatarThanks Obs, How can we as downloaders as well as uploaders feel guilty about what we do when people like Michael Lyton are the ones running the show. When he stated that he "Doesn't see anything good coming from the internet", that's like the Pope saying that the world is flat (1548-1600), we can at least forgive the Pope as that was over 400 years ago. We should not however forgive Michael Lyton for being a neanderthal. I apologize to any and all neanderthals that mite be sitting in your caves drawing on your walls and cruising the net for putting you in the same boat as the cronies running the entertainment industry.

posted by (2010-01-03 17:29:27)
rodolfo89 avatarnetflix wants 2 take over local video store

posted by (2010-01-03 17:48:45)
Brynn217 avatarWell, I for one think that For those who actually pay to get movies, Netflizs is the way to go.. When they first came out I was right on that bandwagon.. And even up to this year, I paid that $1 extra for my son and daughter to stream in movies they wanted.. It was awesome since my daughter moved to Dever and could use her laptop to stream.... no fuse no muss... and great for those who dont want to pirate... Just want to flip on the netbook and watch a movie.... Things could not get better...They are right in that respect....

Problem is, SONY is also correct.... AS WE ALL KNOW.... on my Desktop now is Ashampoo's ClipFinder HD.... which IF I *Still* subscribed to Netflixs, I could stream in one of their new releases (THAT we all usually already have) and record it on my PC then save it as an AVI and distribute without a problem after cleaning out the country codes and such... There is nothing to stop US from doing that, and it WILL ALWAYS be a problem for SONY since they are the ones who fine tune their players so much, cheap DVD copies will not work in them..... WE will always come up with some way to circumvent their protection schemes so that we can record the live stream... And in this respect, our market... those idiots on the street who only know DVD players and can't turn on a computer will gladly wait for us and not go to the theater... thus cutting a few $100,000 off the MILLIONS per Release that they MIGHT loose to us....

See I really feel bad about it... but as long as they CONTINUE to control release of THEIR Materials, they can't loose... Very Rarely do we get tibits and maybe one movie a year PRE-RELEASE.. Then WE must suffer through the cams and TS's until a perfect copy becomes available... Or subcumb and pay their $10.95 to see their new product... Some of which is actually worth it on that BIG Screen...

So, they can embrace the new technology or not... In OUR world, it does not effect us... The money to made off of streaming is a battle for what is available to stream, nothing more... Netflixs is looking for exclusive rights to SONY or PARAMOUNT and other such releases... Just like REDBOX is... Its all in their intrests and not ours... Pretty soon you will be able to stream any 30day old movie directly to your IPhone and watch it at work......the Technology is already available for us....


posted by (2010-01-03 18:24:07)
No avatarThen again, allowing more legal download options would mean less profit from piracy lawsuits. I hate money.

posted by (2010-01-03 21:16:50)
iwillkillall avatarcheers obscene, nice article

posted by (2010-01-03 22:57:29)
Flubie avatarthis reminds me of the arguments that the dinosaurs of cinema used back in the introduction of the video tape. they said it would ruin their model. people wouldnt go to the theater anymore. yet what happened? the cinema movie experience continued to grow and just passed $10 billion this year. Home video accounts for 67% of their sales. So to be like the music industry and fight change that can bring in new revenue streams is ridiculous. people will still want to own a physical disk but digital streaming is the path to open up to a wider audience that doesnt want a whole wall in their living room dedicated to dvds or blu-rays.

posted by (2010-01-04 01:02:49)
Infectious avatarWell maybe the "movie industry"should adapt to the times instead of trying to cut everyone elses b-lls off.Why in the world would you want to pay 7 to 10 dollars a seat to go see a movie when you could pay a dollar or two and watch it in the privacy of your own home without the bullsh*t you run into at a cinema,like some 6foot 6inch sasquatch with a head like a giant melon sitting right in front of you,or one of those parents who think there two year old is old enough to go to a movie and after 10 minutes of loud surround sound their screaming their asses off the rest of the 90minutes lol.Those of us with large families just can't afford to take everyone to the movies anyway.

posted by (2010-01-04 01:06:41)
Infectious avatarHell,I have six children and me and my wife,at 7 to 10 dollars for a seat in a cinema,almost 100dollars.Can't possibly think of a film I would pay that much to watch in a cinema lol.

posted by (2010-01-05 14:27:49)
moominos avatari agree jd,we have 3 kids, and its just too much money to risk on a bad movie, i think the whole net streaming thing,in essence at least, is a good idea.But as we all know once the bigwigs at the movie studios get hold of a potential money-spinner, they take away the purity of the thing and cover it with s**t.Also ,as humans,and this maybe just me,but i like a film on a disc,call me old fashioned but i do,box n all !.In england, as soon as a film lands on these shores,theyres duty tax,value added tax all stamped on these things,so the film may have started at £6 but ended up at £13.99..........

posted by (2010-01-11 22:02:51)
Brownbomber272 avatarGreat read obs

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