CW Shows to Stream on Netflix

Publication: The New York Times

Title: Deal With Time Warner Brings The CW to Netflix

Article by: Amy Chozick

http://mediadecoder.blogs.nytimes.com/2011/10/13/deal-with-time-warner-brings-the-cw-to-netflix/?ref=business

Time Warner and the CW have struck a deal with Netflix to license some television content.  More specifically, Warner Bros. Television Group and CBS Corporation signed a four-year $1 billion agreement that will allow Netflix to stream shows that air on the CW network as soon as Oct. 15.

This deal has been an about-face for Time Warner CEO Jeffrey L. Bewkes, who had initially given online-streaming services such as Netflix the cold shoulder.  However, over the course of this past year, Bewkes composed guidelines for “monetizing content” via subscription streaming services.

According to the Times:

“That strategy included not separating the rights to TV shows so that the same show could be sold into syndication on a traditional TV network and, then, at a diminished rate, to an online subscription service.”

Since the CW’s programming is targeted at the 18-34 demographic, it makes sense that they would begin looking into partnering with online streaming services, since younger audiences tend to prefer to watch TV on laptops and other mobile devices.

Netflix to Keep Services Together (Goodbye, Qwikster)

Publication: The New York Times

Title: Netflix, in Reversal, Will Keep Its Services Together

Article by: Brian Stelter

http://mediadecoder.blogs.nytimes.com/2011/10/10/netflix-abandons-plan-to-rent-dvds-on-qwikster/?ref=media

Just a couple of months after announcing that Netflix would be splitting into two services, Netflix retracted it’s decision and revealed that the DVD-by-mail service and the online streaming service would be kept under one name and one website.

The statement from Netflix came after customers expressed discontent about the way Netflix has been handling accounts and decision-making.

Apparently, in making the decision to split the services, Netflix misinterpreted consumer needs.  According to the New York Times:

“Netflix said it never actually separated the services or started Qwikster. But the planned breakup was rooted in Mr. Hastings’ belief that DVDs and online streams have different cost structures and different consumer demographics.”

In the end, the reversal is probably for the best.  Netflix has chalked this whole incident up to moving “too fast.”  They are in the process of building up their online streaming service and inking deals with TV networks as well as production companies.

Netflix Split: Qwikster and Netflix

Publication: The New York Times

Title: Netflix to Break Business in Two

Article by: Elizabeth A. Harris

http://mediadecoder.blogs.nytimes.com/2011/09/19/netflix-c-e-o-apologizes-for-handling-of-price-increase/?ref=media

 

Late Sunday night, the CEO of Netflix Reed Hastings posted an apology letter to customers on the company website, stating he was sorry for the way he managed and communicated pricing and subscription changes.

He revealed that the company would be divided into two.  The DVD-by-mail portion of the business is now called Qwikster.  The movie streaming service would be called Netflix.  In addition, the two entities would appear separately on customers’ bills.

After the changes in Netflix pricing and subscription services this summer, 1 million out of 25 million customers left.

The New York Times notes:

“But Mr. Hastings did not apologize for increasing subscription fees, or for asking customers to think about the two services separately. Instead, he blamed his own “arrogance based upon past success” for a failure to communicate in the face of a fast-changing business model.”

Starz and Netflix End Partnership

Publication: Adweek

Title: Starz Will End Netflix Partnership: Negotiations over renewal break down

Article by: D.M. Levine

http://www.adweek.com/news/technology/starz-will-end-netflix-partnership-134570

 

Starz Entertainment has announced that they will not be renewing their contract with Netfliz when it expires in February.

In a statement Starz CEO Chris Albrecht said the partnership ending

“is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content. With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business.”

This means that Netflix subscribers will not be able to access movie titles from Disney and Sony.  This announcement is being viewed as a major hit to Netflix which has been facing a great deal of competition from new video streaming services such as Amazon.