Netflix in Heated Race for Online Movies

Aggressive expansion, subscribers' departure add to woes

(NEWSER) - Amazon’s plunging profits may have Jeff Bezos worried, but he can take solace in the misery of a competitor: Netflix stock dropped a whopping 35% to $77.37 yesterday following some bleak announcements the day before. On Monday, the company said its US subscribers had plummeted and that it expected several quarters of losses next year as its service expands into the UK and Ireland. The company, which last month expanded into 43 Latin American and Caribbean countries, has been in turmoil since it announced a price hike this summer. More»

Petitions prompt Microsoft, Apple to cut connection to charity group

(NEWSER) - Apple, Microsoft, and an array of other online retailers have found themselves at the center of a gay-rights battle, the New York Times reports. The retailers have been tied to an Internet marketer, the Charity Giveback Group, that receives a commission when it sends the retailers an online customer. There's nothing unusual about the arrangement—except that part of that commission goes to a Christian charity selected by the customer, and the list of charities said customer has to choose from includes Christian groups that loudly oppose homosexuality. More»

But consumers shouldn't expect an end to streaming headaches

(NEWSER) - A new contender is emerging in the streaming-content wars: Old standby Blockbuster appears set to launch a new streaming video service tomorrow. Right now, the Dish Network-owned company offers pay-per-view on-demand service, but it could make a big splash with its own unlimited-streaming plan, CNNMoney notes. So what does all this mean for customers? Even more confusion, writes Julianne Pepitone. More»

Following news of Qwikster, some are leaping to defend the move

(NEWSER) - Netflix CEO Reed Hastings certainly sent tongues wagging when he announced last night that Netflix was spinning off its DVD business into something called "Qwikster." Was the move visionary or boneheaded? Here’s what people are saying:

• Hastings’ post “feels like yet another failure to communicate,” complains Austin Carr of Fast Company . The move has made “the company's offerings the digital equivalent of a menu at the Cheesecake Factory,” and that’s sure to confuse “average-not-too-tech-savvy parents” everywhere.

Reed Hastings explains recent price hike, but many still not happy

(NEWSER) - Netflix’s recent price hike caused rampant backlash , cost the movie rental service one million subscribers , and sent the company’s stock tumbling. Last night, CEO Reed Hastings admitted in a blog post , “I messed up.” But he’s not offering a reversal on the price hike, simply an explanation that, he admits, should have come earlier: Netflix is spinning off its classic DVD-by-mail service; it'll now be a distinct entity known as Qwikster, while Netflix itself will become streaming-only. The Wall Street Journal notes that while Qwikster will be a wholly-owned subsidiary of Netflix, the two websites (including movie queues and ratings and account information) will not be integrated. More»