Nearly a third of all Netflix subscribers with broadband internet connections stream video to their TVs using the company’s Watch Instantly service according to a new report from TDG.
That figure includes 24.6% who use both their computer and TV for Netflix streaming and 7.2% who watch exclusively on a TV. Another 30.7% only use their computer.
Even though the remaining 37.5% don’t use the service at all, the majority are at least familiar with it.
The increasing number of viewers streaming video to TVs is a reflection of the company’s long term thinking. In fact Netflix has taken a smart approach to the streaming business from the very beginning, when it was little more than a novelty.
Perhaps the most important detail of their strategy has been the understanding that some things are worth more when you give them away.
That’s not to say streaming video has no value. But its value hasn’t been in producing a unique revenue stream. Instead they’ve used it to promote their DVD by mail business and help them continue to increase their subscriber base.
The decision not to charge extra for streaming has allowed them to make other good decisions, such as avoiding overpriced content deals.
The number and variety of titles available initially through Watch Instantly was extremely limited. There were no big hit movies or TV shows when the service debuted in 2007.
Had they been charging extra to use the service that would probably have been the kiss of death. But they weren’t. As a result, anything they offered was a bonus.
Result for: p2p networks
A federal judge has officially placed graduate student Joel Tenenbaum on the line for $675,000 USD, the fine he was given by a jury after being found guilty of sharing 30 unauthorized songs via P2P networks.
Judge Nancy Gertner signed off on the damages, meaning Universal gets $292,500, Warner gets $225,000, Sony BMG gets $112,500 and Arista gets $45,000.
Despite signing off on the giant fine, Judge Gertner once against expressed concern over the “astronomical penalties” available to copyright holders, and noted that Tenenbaum missed out on an opportunity to shape the future of fair use laws.
“As it made clear previously, the Court was prepared to consider a more expansive fair use argument than other courts have credited—perhaps one supported by facts specific to this individual and this unique period of rapid technological change. For example, file sharing for the purposes of sampling music prior to purchase or space-shifting to store purchased music more efficiently might offer a compelling case for fair use. Likewise, a defendant who used the new file-sharing networks in the technological interregnum before digital media could be purchased legally, but who later shifted to paid outlets, might also be able to rely on the defense,” says Gertner.
Tenenbaum has said he will declare bankruptcy leaving the record labels with nothing if the fine is ruled constitutional on January 5th.
Result for: p2p networks
Japanese porn producers have sued 10,000 South Korean Internet users this week over breach of copyright for their part in uploading copywritten adult films to sites and P2P networks.
The lawsuit was filed in Seoul and the Gyeonggi province however National Police Agency spokesmen refused comment.
“Police will look into the case to see whether there was any breach of the law before deciding whether to initiate criminal probes against them,” added a police officer, off the record, via the AP.
The lawsuits claim the distribution of the porn is “very harmful to juveniles,” and should be stopped.
“We selected about 10,000 user IDs that earned financial benefits from habitually uploading pornography on websites,” added an unnamed official.
The porn producers are looking for financial damages.