Posts Tagged ‘Netflix’

Netflix expanding use of PlayReady DRM

According to a joint press release issued today, Netflix will begin using Microsoft’s PlayReady DRM on all Netflix devices and applications. The DRM will cover streaming and physical Netflix copies.

“Netflix ready devices are a popular way for our members to instantly watch the huge library of TV episodes and movies available from Netflix that can be watched instantly on their TVs,” said Bill Holmes, vice president of business development at Netflix. “Netflix is expanding our investment in PlayReady and making PlayReady our primary DRM technology because it best meets the requirements of our content suppliers and device partners while allowing us to benefit from efficiencies in our content delivery infrastructure.”

From the facts pages about PlayReady, it certainly seems to offer a lot of options…it can be used on rentals, pay per view or purchase and subscription models. Since the license information is actually embedded within the content itself, transferring that content between devices shouldn’t present a problem either.

All in all, it sounds like a reasonable system. How it will turn out in practice we’ll soon find out.

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Netflix puts one month delay on Fox and Universal new releases

In January, Netflix signed a deal with Warner Bros. that put a 28 day delay on  Netflix adding WB new releases to their catalogue. In exchange, Warner Bros. gave Netflix more favourable financial terms. A similar deal has now been struck between Netflix and both 20th Century Fox and Universal Pictures.

Whenever a new Fox or Universal movie releases on DVD, Netflix will hold off on adding it to their distribution catalogue for a period of 28 days. As with the earlier WB deal, Netflix will receive more favourable financial terms. Much of the cash saved in these deals will be used to beef up their digital streaming distribution system.

The studios believe that delaying Netflix availability will also delay widespread piracy of their new releases, and also help to maintain the market for physical outlets like Blockbuster, who also recently signed a deal guaranteeing continued access to new release movies with Warner, Fox and Sony Pictures.

It’s quite likely that similar deals will be struck between Netflix and the other major movie studios.

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Netflix stops carrying Warner Bros. new releases due to studio piracy concerns

For years, movie studios have cried poverty due in large part to piracy of their movies. And one of the suspected culprits in the rapid appearance of new DVD releases on to torrent sites is Netflix.

Basically, for $16.99 per month, Netflix customers get access to up to three movies simultaneously with the ability to exchange movies at any time for any other film in the Netflix catalogue. The movie studios have decided that this rapid and regular exchange of titles explains in part the speed with which new movie releases appear on popular download sites.

Well, Netflix has begun to cave.

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