Hollywood Shouldn't Fear the Internet

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»

(NEWSER) - Like 10.6 million Americans, Time film critic Richard Corliss has a subscription to Netflix, which sends everything from Bollywood megamusicals to BBC miniseries to his mailbox. "No question," Corliss admits, "Netflix serves a need"—it's super cheap and stocked with titles. But the DVD delivery service has killed off independent stores run by Tarantino-like obsessives, while we turn into "those blobby people in WALL•E." More»

Firm to give credit to millions of customers hurt by mystery glitch

(NEWSER) - Netflix deliveries were returning to normal yesterday after a computer glitch caused a 3-day disruption, Reuters reports. The company plans to offer a 15% credit to the millions of movie lovers affected by the glitch, whose cause is still a mystery. The outage, the worst in Netflix history, is believed to have cost the company close to $2 million, which isn't expected to hurt the company's bottom line, but the snafu could hurt its reputation. More»

Fox deal presages plans to shake up online distribution

(NEWSER) - Apple is getting ready to formally announce the launch of its online movie rental business, the AP reports. Fox is already on board, as the FT reported yesterday, and other studios are expected to follow in making their movies available for rent through iTunes. Apple's also planning a widespread licensing deal for its FairPlay anti-piracy technology. More»

At $3 a pop, 30-day movie loans will pit computer giant against cable, satellite

(NEWSER) - Apple is buttering up top movie studios as it prepares to launch a video-on-demand service to contend with cable and satellite companies. Apple plans to offer each movie as a 30-day rental for $2.99, and it's telling studios the term of lease means they won't take a hit on DVD sales. More»