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• Netflix's hot new video player

  Posted May 20 2008, 10:43 AM by Kim Peterson
  Filed under: Apple, Blockbuster, Netflix
  Rating:

  Today we're seeing the future of Netflix. The company announced its $100 set-top player, available now and getting all kinds of frothy reviews (Wired calls it "just shy of totally amazing"). Hook the box to your TV and your wired or wireless high-speed Internet connection, and you can stream videos from Netflix's library.
  

  Before we drill into the details of this thing, note that Netflix shares rose nearly 4% today, but closed up 2% to $31.63. Netflix shares have enjoyed a good run over the last year as the company grew subscribers and beat out Blockbuster in the DVD-by-mail business. But mailing DVDs has always been a short-term play. Now, we're seeing what Netflix wants to be when it grows up.   Read More...

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• Time Warner trial ends flat-rate Internet fees

  Posted Jan 17 2008, 12:32 PM by Kim Peterson
  Filed under: Microsoft, Apple, Netflix, Time Warner Cable, online video
  Rating:

  

  Talk about bad timing. Apple just announced it will offer downloaded movie rentals (including high-def) over the Internet. Netflix is working on a set-top box to do the same thing, and Microsoft has been ramping up its downloadable movie offerings over Xbox Live. 

  Now, one cable company is starting to push back at excessive bandwidth usage caused mainly by video downloading. After an internal memo was leaked, Time Warner Cable confirmed it's planning a trial in Beaumont, Tex., in which it will charge Internet subscribers based on usage. (Time Warner's shares closed down 22 cents to $22.35 Friday.)

  It's a tricky situation for Time Warner and other cable companies. Customers generally pay a flat rate for Internet (about $50 a month in my case), but a small minority are basically torrenting HD movies like crazy and sucking up a bunch of bandwidth. According to the leaked memo, 5% of subscribers were using up half of the total bandwidth.   Read More...

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• Netflix lifts limits on streaming movies

  Posted Jan 14 2008, 03:24 AM by Kim Peterson
  Filed under: Apple, Netflix
  Rating:

  

  Netflix does most of its business by mail, but the company is getting ready for the future by spending $40 million on a video streaming service for customers with high-speed Internet connections. Today, the company is lifting restrictions on that service so that customers can watch as many movies and television shows as they want from Netflix's library of 6,000 titles.

  Netflix previously set time limits on how much customers could watch per month, presumably to save money on bandwidth and the fees it must pay Hollywood when a movie is streamed. Today's move could be costly, because the company isn't raising its monthly rates to compensate for the added expenses.

  Why the sudden burst of generosity? We probably have Apple to thank. If the rumors are true, Apple is set to announce movie rentals over iTunes tomorrow at its Macworld Expo. Apple hasn't been much of a competitor to Netflix before, but with a movie rental service the company becomes a threat.   Read More...

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