WEBVTT - Videos In the Stream 0:00:04.240 --> 0:00:07.240 Get in touch with technology with tech Stuff from how 0:00:07.280 --> 0:00:13.680 stuff works dot com. Hey there, and welcome to tech Stuff. 0:00:13.680 --> 0:00:16.840 I'm Jonathan Strickland and I'm Lauren and today we're going 0:00:16.880 --> 0:00:20.200 to talk about streaming video services, and really we're going 0:00:20.280 --> 0:00:23.520 to focus on three big names in streaming video, knowing 0:00:23.560 --> 0:00:27.160 that there are lots of other names out there, but 0:00:27.240 --> 0:00:30.560 the three were specifically looking at. The three biggest as 0:00:30.560 --> 0:00:33.120 of right now are really kind of sort of maybe 0:00:33.200 --> 0:00:39.800 ish are Hulu plus Amazon Instant and Netflix, And keeping 0:00:39.800 --> 0:00:42.240 in mind, will also talk a little bit about Hulu, 0:00:42.479 --> 0:00:45.080 we'll talk a little bit about probably mentioned some of 0:00:45.080 --> 0:00:48.760 the other services like iTunes obviously also has streaming and 0:00:48.840 --> 0:00:53.200 Apple TV right, and there's so many different choices out there, 0:00:53.240 --> 0:00:55.240 these were the big three. I mean, obviously if you 0:00:55.280 --> 0:00:59.080 own something like um an Xbox three sixty, then you 0:00:59.160 --> 0:01:02.800 also have stuff the Microsoft Video that you can buy 0:01:02.840 --> 0:01:06.680 stuff or rent stuff on. Then there's also PlayStation and 0:01:06.720 --> 0:01:10.720 Sony have a deal. So the Google TV is another example. 0:01:10.920 --> 0:01:13.840 There are a lot of different technologies out there that 0:01:13.880 --> 0:01:17.479 are all about streaming content over the Internet in your 0:01:17.480 --> 0:01:20.080 television or computer. Even YouTube. You could argue, is is 0:01:20.080 --> 0:01:23.520 that content provider? Oh sure, sure, I can. I view 0:01:23.640 --> 0:01:26.160 YouTube all the time when I'm at home. There's this 0:01:26.200 --> 0:01:27.959 great series I love to watch at home on my 0:01:28.000 --> 0:01:31.600 big television. It's called Forward Thinking. It is amazing. The 0:01:31.600 --> 0:01:35.400 host is uber uber Hut and so I watched that 0:01:35.880 --> 0:01:38.600 all the time at home on my big television and 0:01:38.760 --> 0:01:41.160 it's great. I mean, you know, it is filmed with 0:01:41.160 --> 0:01:43.600 the red one, So so the I mean, yeah, actually 0:01:43.600 --> 0:01:47.160 we upgraded to a four kN K to four K. 0:01:47.440 --> 0:01:49.400 I mean they went from two K to four K. 0:01:50.160 --> 0:01:53.120 So they're like, we said, a lot of different choices 0:01:53.120 --> 0:01:55.800 out there, but let's focus on probably the I would 0:01:55.880 --> 0:01:58.600 argue this is probably the most well known name. And 0:01:58.760 --> 0:02:00.960 in the interest of full Disco, sure, we're gonna be 0:02:01.000 --> 0:02:03.440 talking about Netflix. And Netflix has been one of our 0:02:03.440 --> 0:02:05.480 sponsors in the past. They are one of our sponsors 0:02:05.480 --> 0:02:07.960 for tech stuff. But we're just going to talk about 0:02:08.000 --> 0:02:11.480 the way that it works and how it kind of started. 0:02:11.560 --> 0:02:15.440 So if you look all the way back to nineteen seven, 0:02:15.560 --> 0:02:20.080 that's when the company Netflix formed, and at that time 0:02:20.200 --> 0:02:22.720 it was just kind of an idea. It hadn't even 0:02:23.280 --> 0:02:25.760 there wasn't a business there yet. That was really kind 0:02:25.760 --> 0:02:28.680 of the paperwork. So it was on paper. It wouldn't 0:02:28.680 --> 0:02:33.960 be until nine that they actually launched a subscription DVD 0:02:34.440 --> 0:02:38.880 mail to home plan plan. Yeah, they were offering up 0:02:38.919 --> 0:02:42.280 rentals and sales, and but it was when the famous 0:02:42.400 --> 0:02:45.880 subscription service came in, that idea where you would make 0:02:45.960 --> 0:02:48.520 up a list of DVDs that you were really excited 0:02:48.560 --> 0:02:50.440 about seeing, and then they would send you one and 0:02:50.480 --> 0:02:52.400 it would sell on your coffee table for four months, 0:02:52.440 --> 0:02:54.160 and then you'd think, I never really got around to 0:02:54.200 --> 0:02:55.520 watching that, but I want to see the next thing 0:02:55.560 --> 0:02:57.320 on my list, and you send it back without ever watching. 0:02:57.320 --> 0:02:59.679 It was that just me, okay, good, I'm glad it 0:02:59.720 --> 0:03:03.079 wasn't as me, um, I swear I'm going to see 0:03:03.080 --> 0:03:06.200 the Prestige one day. Oh you should. I know, it's 0:03:06.200 --> 0:03:08.280 a terrific film. It sat on my coffee table for 0:03:08.320 --> 0:03:10.960 four months and that's it. That's it. That's a shame, 0:03:11.080 --> 0:03:15.400 I know, I know. But anyway, they were strictly physical 0:03:15.440 --> 0:03:18.480 media at first. In fact, for most of their their 0:03:18.520 --> 0:03:20.680 existence if you look at the full timeline. Yeah, they 0:03:20.680 --> 0:03:24.480 didn't even debut their watch instantly feature until two thousand seven, 0:03:24.680 --> 0:03:28.960 and they did not provide unlimited streaming content until early 0:03:29.000 --> 0:03:31.760 two tho Yeah, and two thousand seven, it was incredibly 0:03:31.800 --> 0:03:34.720 limited and even two thousand eight when you look at 0:03:34.520 --> 0:03:36.800 h This is one of those criticisms that are that 0:03:36.960 --> 0:03:39.880 is often leveled by by people at Netflix, which is, 0:03:40.600 --> 0:03:42.560 you know, I look at what you have available on 0:03:42.600 --> 0:03:44.680 your DVD list, and then I look at what you 0:03:44.720 --> 0:03:49.360 have available on your instant library list, and y'all, there's 0:03:49.360 --> 0:03:51.520 stuff I want to watch that just like I can't 0:03:51.560 --> 0:03:54.720 see on that instant side. And this is because there 0:03:54.720 --> 0:03:58.040 are some really complex deals going on in the back 0:03:58.160 --> 0:04:01.800 end between Netflix, which as a service provider, and the 0:04:01.880 --> 0:04:07.640 content creators that make the content to Netflix. So Netflix 0:04:07.640 --> 0:04:10.200 has to create and this is the same with other 0:04:10.600 --> 0:04:13.680 services as well. They have to enter into these agreements 0:04:13.680 --> 0:04:18.280 with various content creators to be able to broadcast stuff 0:04:18.360 --> 0:04:22.000 over streaming, the same way that a cable channel would 0:04:22.400 --> 0:04:25.479 license to content. Right now, in the case with the 0:04:25.520 --> 0:04:28.320 cable company, a very similar anyway, very similar in the 0:04:28.320 --> 0:04:30.400 case with the cable companies, they're looking at channels or 0:04:30.440 --> 0:04:34.480 bundles of channels. So but with you know, with Netflix, 0:04:34.520 --> 0:04:37.160 it might be it might be a little more pick 0:04:37.200 --> 0:04:41.039 and choose. So instead of saying I want everything that 0:04:41.920 --> 0:04:46.120 MTV produces when it comes to their original content. I 0:04:46.120 --> 0:04:49.400 want every single show. It may be that I want 0:04:49.680 --> 0:04:53.120 these five shows that MTV produces, but that's the only 0:04:53.160 --> 0:04:55.760 five and the and in this case, those agreements can 0:04:55.800 --> 0:04:57.880 go through the instead of a cable company, where it's 0:04:57.960 --> 0:05:01.200 kind of an all or nothing proposition. UM services like 0:05:01.240 --> 0:05:03.839 Netflix can enter into these agreements where they get certain 0:05:03.880 --> 0:05:06.440 things but not other things. And in some cases it's 0:05:06.480 --> 0:05:10.240 not necessarily uh to the benefit of Netflix. It might 0:05:10.240 --> 0:05:13.080 be the key that the content creator says, you know, 0:05:13.120 --> 0:05:15.240 this is my best stuff, and I want to make 0:05:15.480 --> 0:05:19.200 uh my money going through the traditional broadcast or cable 0:05:19.279 --> 0:05:23.480 route and then make more money through DVD sales whatever. Um, 0:05:23.520 --> 0:05:26.960 I don't want to provide this to your subscribers. So 0:05:27.040 --> 0:05:29.400 it's a very complicated dance that Netflix has to do 0:05:29.480 --> 0:05:32.520 every time it's trying to get more content, and obviously, 0:05:32.600 --> 0:05:35.400 from a consumer standpoint, you want there to be as 0:05:35.480 --> 0:05:40.360 much content in whichever service you are subscribing to. Also, 0:05:40.720 --> 0:05:45.040 to make matters even more complicated, there are issues about 0:05:45.120 --> 0:05:47.839 what kind of content can be shown where So in 0:05:47.880 --> 0:05:52.000 other words, if I'm a Netflix customer in Canada, the 0:05:52.080 --> 0:05:54.599 options I have are different than the ones I would 0:05:54.640 --> 0:05:57.720 have in the United states. If I were a customer 0:05:57.800 --> 0:05:59.680 somewhere else in the world, and I would have that 0:05:59.760 --> 0:06:02.080 same sort of issue, right. And that's again because all 0:06:02.120 --> 0:06:05.960 of these licensing agreements are are very conditional. Yeah, some 0:06:06.040 --> 0:06:08.560 of them are conditionally regionally. Some of them are conditional 0:06:08.920 --> 0:06:12.159 based upon the type of equipment you're using to watch 0:06:12.360 --> 0:06:15.680 something on. Right. I don't think Netflix has that issue 0:06:15.760 --> 0:06:17.719 as much, but we will, but we will get into 0:06:17.760 --> 0:06:22.000 that with some of our other discussions. Um. As often, 0:06:22.040 --> 0:06:25.440 there are about twenty nine point eight million Netflix subscribers 0:06:25.480 --> 0:06:30.920 in the US and another seven point six million worldwide, um, 0:06:30.920 --> 0:06:33.280 which is which is up from twenty million at the 0:06:33.279 --> 0:06:37.920 start of so and so. And you know, to another 0:06:38.279 --> 0:06:40.480 judge of another way to judge how popular they are 0:06:40.520 --> 0:06:44.760 based upon not just from a subscriber account, is how 0:06:44.880 --> 0:06:51.680 much traffic Netflix generates on the interwebs, right, Um, supposedly 0:06:51.880 --> 0:06:56.159 Netflix accounts for one third of streaming video on any 0:06:56.200 --> 0:07:00.240 given day. Um. That's that's twice what YouTube does. Yah. 0:07:00.240 --> 0:07:03.640 And keep in mind YouTube, Now, YouTube is generating content 0:07:03.800 --> 0:07:06.960 at a crazy pace. We've talked about this. It's like 0:07:07.279 --> 0:07:11.280 a hundred hours of content every minute. So every minute 0:07:11.280 --> 0:07:13.880 that goes by another hundred hours worth of content gets 0:07:13.920 --> 0:07:17.560 added to YouTube, but if you're looking at actual traffic 0:07:17.600 --> 0:07:21.400 of people watching stuff, Netflix outstrips at three to one. 0:07:21.800 --> 0:07:24.040 Now that might also be because a lot of the 0:07:24.040 --> 0:07:26.240 content on Netflix is long form and a lot of 0:07:26.240 --> 0:07:29.600 the content on YouTube is very short form, and Netflix 0:07:29.640 --> 0:07:33.040 provides a lot more in HD. Yes, that's also true. 0:07:33.080 --> 0:07:36.200 So uh. In other words, those file sizes are are 0:07:36.240 --> 0:07:39.280 bigger for multiple reasons, not only because they are longer, 0:07:39.960 --> 0:07:42.280 as in they last longer, like it's a thirty minute 0:07:42.280 --> 0:07:44.160 show or twenty minute, but it's a larger file to 0:07:44.160 --> 0:07:47.760 begin like exactly. Um as of November twelve, this accounted 0:07:47.760 --> 0:07:53.000 for about a third of all US downstream traffic. Yeah, 0:07:53.040 --> 0:07:56.120 this is uh. It's also why a lot of Internet 0:07:56.160 --> 0:07:59.840 provider companies i sp s are staying to talk about caps. Yeah, 0:08:00.080 --> 0:08:03.240 where they were, like especially initially when Netflix Instant was 0:08:03.320 --> 0:08:06.800 starting off. Now, back then, there weren't as many customers 0:08:06.800 --> 0:08:09.280 who were taking advantage of it. I would say that 0:08:09.360 --> 0:08:12.840 this is something that's really starting to explode. Over the 0:08:12.880 --> 0:08:15.000 last like maybe a year or two, we've really seen 0:08:15.000 --> 0:08:18.240 it like take off. Before that, there were early adopters 0:08:18.240 --> 0:08:20.080 who were very enthusiastic about it, and then there were 0:08:20.120 --> 0:08:22.120 a few other people who were curious about it, and 0:08:22.200 --> 0:08:24.680 some people had it, you know, added on as part 0:08:24.680 --> 0:08:27.040 of their DVD service, and so they played with it 0:08:27.080 --> 0:08:30.000 once or twice. Um now that one. I think. One 0:08:30.040 --> 0:08:31.880 of the things Netflix did that they did really well 0:08:31.960 --> 0:08:34.880 was they got their app on as many different platforms 0:08:34.920 --> 0:08:38.559 as possible. It's one of the things I thought, this company, 0:08:38.600 --> 0:08:40.960 they know what they're doing. They're on Xbox there on, 0:08:41.200 --> 0:08:44.640 you know, PlayStation there on, we they're on you know, computers, 0:08:44.720 --> 0:08:50.000 stay out, telephone and tablet use yeah, so smartphone anyway, exactly. Yeah, 0:08:50.000 --> 0:08:52.800 so they like to call up and listen to my 0:08:52.840 --> 0:08:56.560 favorite movies. Um No, they really were very savvy. They 0:08:56.720 --> 0:08:59.679 got in front of as many eyeballs as possible, and 0:08:59.720 --> 0:09:03.040 that definitely helped a lot. Now, I haven't always been 0:09:03.080 --> 0:09:06.640 incredibly savvy. Back in back, you guys might remember, there 0:09:06.720 --> 0:09:10.640 was the entire Quickster debacle and Netflix was just going 0:09:10.679 --> 0:09:14.040 to become streaming only in a new company called Quickster 0:09:14.160 --> 0:09:17.520 would be all the DVDs, and and that was after 0:09:17.720 --> 0:09:21.400 another controversial thing where where they were um planning on 0:09:21.400 --> 0:09:24.000 on splitting the DVD and streaming plans with like a 0:09:24.080 --> 0:09:28.840 fifty over price Hike to to get both of them, um, 0:09:29.000 --> 0:09:30.800 which was still I mean, because it had originally been 0:09:30.840 --> 0:09:32.280 like ten bucks a month and it was going up 0:09:32.320 --> 0:09:34.160 to like sixteen month bucks a month if you were 0:09:34.160 --> 0:09:36.679 going to have both DVDs and streaming, and that one 0:09:36.760 --> 0:09:38.760 they did push through. It almost makes me think that 0:09:38.840 --> 0:09:42.040 they were joking about Quickster in order to make the 0:09:42.040 --> 0:09:46.480 other things sound. I remember seeing Facebook explode when this happened, 0:09:46.480 --> 0:09:50.359 and Twitch exploded to I had friends who were immediately 0:09:50.600 --> 0:09:53.800 and vociferously proclaiming that they would leave Netflix, never to 0:09:53.840 --> 0:09:57.679 return wherever, and burn the villages behind them, and so 0:09:57.880 --> 0:10:00.480 the ground was salt, whereas I was the like, guys, 0:10:00.480 --> 0:10:04.240 I think you might be overreacting like that sounds like 0:10:04.280 --> 0:10:07.880 six dollars, but I mean, but stock fell from over 0:10:08.160 --> 0:10:10.600 three hundred bucks to share to two under a hundred 0:10:10.720 --> 0:10:15.240 and Read Hastings, the CEO, the founder of Netflix, apologized 0:10:15.320 --> 0:10:18.920 publicly for it. He you know, this is not something 0:10:18.920 --> 0:10:22.000 that happens very frequently where you have a CEO offer 0:10:22.080 --> 0:10:25.480 up an apology. I mean Tim Cook did for Apple. 0:10:25.760 --> 0:10:27.480 That's like the only other one I can think of 0:10:27.480 --> 0:10:30.120 off the top of my head. So, um, you've had 0:10:30.200 --> 0:10:32.240 you know, we've of course seen stories about CEO is 0:10:32.280 --> 0:10:35.480 admitting that certain products in the company's past was were 0:10:35.640 --> 0:10:38.480 possibly a mistake or badly handled. But this was an 0:10:38.520 --> 0:10:41.760 outright apology to the public saying, you know, guys, um 0:10:42.160 --> 0:10:45.199 I was thinking it was a great idea. I clearly 0:10:45.240 --> 0:10:47.680 you guys feel differently. We are not going to do it, 0:10:47.760 --> 0:10:50.480 so don't worry. Yeah, but that was that was a 0:10:50.520 --> 0:10:53.440 big strike against Netflix at that point when they tried 0:10:53.440 --> 0:10:56.880 to do the whole Netflix Quickster thing. Now, Netflix has 0:10:56.920 --> 0:10:59.439 made some pretty big deals. Not all of them are 0:10:59.600 --> 0:11:02.439 ex usive deals. I should say, we're gonna be talking 0:11:02.440 --> 0:11:04.680 about some of the deals that they've made with various 0:11:04.720 --> 0:11:08.120 content creators so that they can be allowed to show 0:11:08.160 --> 0:11:11.440 certain types of content on their channels or on their service. 0:11:11.480 --> 0:11:15.160 I should say, Uh. One of them, which was announced 0:11:15.160 --> 0:11:17.960 the day that we are or I think two days 0:11:17.960 --> 0:11:21.200 before we actually record this podcast, is an exclusive deal, 0:11:21.240 --> 0:11:24.160 and that is that Netflix and the Weinstein Company or 0:11:24.200 --> 0:11:26.400 Weinstein Company, depending on how you want to pronounce it, 0:11:26.800 --> 0:11:29.720 announced that they are going to enter a multi year 0:11:29.800 --> 0:11:32.880 premium pay TV window agreement in the United States starting 0:11:32.880 --> 0:11:37.040 in TWI and that Netflix will become the quote exclusive 0:11:37.280 --> 0:11:40.880 US subscription television service for first run films from the 0:11:40.880 --> 0:11:45.720 Weinstein Company end quote. So this would include movies made 0:11:46.040 --> 0:11:50.320 under TWC, the Weinstein Company and also Dimension Films, and 0:11:50.440 --> 0:11:53.520 that would become available to Netflix members who are subscribed 0:11:53.559 --> 0:11:58.360 to Netflix. So the interesting thing here to me is that, uh, 0:11:58.480 --> 0:12:00.640 it is exclusive. That means you're not going to find 0:12:00.679 --> 0:12:03.400 these same titles on the other services. Will be talking 0:12:03.400 --> 0:12:06.800 about a little bit later. Uh. Now that's not the 0:12:06.880 --> 0:12:10.440 only deal they've made recently. They made a big deal 0:12:10.480 --> 0:12:16.800 with Disney. Yeah, so that agreement starts in seventeen. We're 0:12:16.800 --> 0:12:20.040 talking long term goals here, folks. Now you might notice 0:12:20.040 --> 0:12:24.280 that there are some Disney titles right, which was part 0:12:24.320 --> 0:12:27.560 of this deal as well, but the larger percentage of 0:12:27.600 --> 0:12:30.720 Disney films will be available beginning in twenty seventeen. Again 0:12:30.760 --> 0:12:34.960 not necessarily exclusive, but they will be available on Netflix 0:12:35.400 --> 0:12:40.320 and again depending upon where you are because these the 0:12:40.360 --> 0:12:43.640 regional rules still are in effect here. Then you also 0:12:43.679 --> 0:12:46.800 have the deal Netflix made with DreamWorks. Now, that agreement 0:12:46.800 --> 0:12:50.200 begins inteen, so that's a little earlier, and we I 0:12:50.200 --> 0:12:53.080 have already seen some Dreamwork stuff available there too, but 0:12:53.160 --> 0:12:56.520 it's all kind of like they're second or third tier titles, 0:12:56.520 --> 0:12:59.200 I would say, or sequel stiff movies that I like. 0:12:59.400 --> 0:13:01.200 I would touch this, but I haven't seen the first 0:13:01.200 --> 0:13:03.960 one and it's not available. Um, I'll have to wait 0:13:04.040 --> 0:13:07.440 till I suppose or get a DVD subscription. Now you're 0:13:07.480 --> 0:13:10.720 just talking crazy talk, all right. So Netflix, of course 0:13:10.800 --> 0:13:13.960 is not the only one to make these deals, whether 0:13:13.960 --> 0:13:16.000 they're exclusive or not, in order to get content. That's 0:13:16.040 --> 0:13:17.880 kind of how the game is played, right sure. Sure, 0:13:18.080 --> 0:13:19.840 And and and a lot of it is is kind of 0:13:19.920 --> 0:13:23.959 being continually mixed up between these top three companies. There's 0:13:24.000 --> 0:13:26.800 there's like, for example, I think Amazon just stole Downton 0:13:26.840 --> 0:13:31.280 Abbey out from under Netflix. Um yeah, but like and 0:13:31.360 --> 0:13:34.000 I think, for example, a Netflix had a deal with 0:13:34.080 --> 0:13:36.240 Viacom for a while and then they're letting the deal 0:13:36.240 --> 0:13:39.360 expire and they're not planning on renewing it. But other 0:13:39.520 --> 0:13:43.160 services are going to definitely work with Viacom, so it's 0:13:43.240 --> 0:13:45.960 it's gonna change over time. But there's something else that 0:13:46.080 --> 0:13:48.920 all these companies are doing too, right, Yeah, And and 0:13:49.040 --> 0:13:52.000 this is something that no one else certainly will have, 0:13:52.080 --> 0:13:55.520 and that is Netflix's original content. Yeah, um, this is 0:13:55.600 --> 0:13:57.760 and this is kind of a big deal because you know, 0:13:58.080 --> 0:14:02.840 up until up until um none of these streaming service 0:14:02.880 --> 0:14:06.679 on demand companies were creating their own new stuff. Right. 0:14:06.720 --> 0:14:09.200 They were, they were a pipe, but they weren't creating 0:14:09.200 --> 0:14:10.679 any of the stuff that was in the pipe. They 0:14:10.679 --> 0:14:13.439 were just giving access to it. Um But but as 0:14:13.440 --> 0:14:18.000 of February twelve, they they offered a show called Lily Hammer, 0:14:18.040 --> 0:14:20.920 which was a co production with a Norwegian producer and 0:14:21.160 --> 0:14:23.880 not that many people in the United States have probably 0:14:23.880 --> 0:14:26.120 even heard of it, and it was pretty big in Norway. 0:14:26.200 --> 0:14:29.480 But House of Cards came out. I don't have a 0:14:29.560 --> 0:14:31.760 date on that, no, but well, House of Cards came 0:14:31.760 --> 0:14:33.800 out I think either. I think House of Cards came 0:14:33.800 --> 0:14:37.440 out late. And that was the first um us kind 0:14:37.440 --> 0:14:40.400 of I'm not gonna say blockbuster, but um but but 0:14:40.480 --> 0:14:43.400 the first popular original show. Right. And keep in mind 0:14:43.520 --> 0:14:46.040 this was a remake of a show that was made 0:14:46.040 --> 0:14:49.440 in the UK, but the US version had Kevin Spacey 0:14:49.520 --> 0:14:51.560 in the lead role and that was a big which 0:14:51.600 --> 0:14:54.760 is a big ya You're talking about an award winning 0:14:55.360 --> 0:14:58.720 film actor playing a part in a series that was 0:14:58.760 --> 0:15:01.800 doing something really friend. Now, what Netflix was doing was 0:15:01.840 --> 0:15:06.119 not just producing this series, which would have been remarkable 0:15:06.160 --> 0:15:09.880 all on its own, and then giving the exclusive look 0:15:10.360 --> 0:15:12.880 at the series to its members. You could not watch 0:15:12.880 --> 0:15:15.640 it anywhere else other than if you were to maybe 0:15:15.640 --> 0:15:18.640 buy the DVD set, which you can do. But they 0:15:18.720 --> 0:15:22.560 also offered up the entire series at one time, so 0:15:22.600 --> 0:15:25.000 instead of telling you do you can just you know, 0:15:25.320 --> 0:15:27.960 crunch through the entire series a day or two if 0:15:27.960 --> 0:15:30.720 you want to just marathon it, you totally could because 0:15:30.920 --> 0:15:32.920 the first season of it anyway, Yeah, first season of it. 0:15:33.280 --> 0:15:35.560 So this was a big difference from the way we 0:15:35.640 --> 0:15:39.480 usually because normally it's talking about something that's on a 0:15:39.520 --> 0:15:43.880 regular basis, it might be serialized. Yeah. So Kevin Spacey 0:15:43.960 --> 0:15:45.760 actually had something to say about this. I've got a 0:15:45.800 --> 0:15:48.520 quote from him. He says, I'm not gonna do it. 0:15:48.600 --> 0:15:53.400 Kevin Spacey, uh so much. Yeah, by the way, fantastic 0:15:53.440 --> 0:15:57.840 impressionist Kevin Spacey. Anyway, So here's what he had to say. Clearly, 0:15:57.880 --> 0:16:00.800 the success of the Netflix model releasing the entire season 0:16:00.840 --> 0:16:02.640 of House of Cards it once proved one thing. The 0:16:02.680 --> 0:16:05.880 audience wants the control, they want the freedom. If they 0:16:05.920 --> 0:16:08.600 want to binge, as they've been doing on House of 0:16:08.640 --> 0:16:11.200 Cards and lots of other shows, then we should let 0:16:11.240 --> 0:16:13.840 them binge. I can't tell you how many people have 0:16:13.840 --> 0:16:16.720 stopped me on the street and said thanks, you suck 0:16:16.800 --> 0:16:19.640 three days out of my life. So but I mean, 0:16:19.640 --> 0:16:22.360 that's that's an example of how this model worked. And 0:16:22.400 --> 0:16:26.280 they followed that up with other examples like Arrested Development 0:16:26.320 --> 0:16:30.080 season four YEP, which, by the way, I'm marathon when 0:16:30.120 --> 0:16:33.520 it came out, Hemlock Groves, which I did not watch. 0:16:33.720 --> 0:16:35.600 I have not watched any of that either, or in 0:16:35.640 --> 0:16:38.120 Just The New Black, which I am currently I am 0:16:38.200 --> 0:16:42.000 only not watching it right now because I don't even 0:16:42.080 --> 0:16:43.760 know why. I'm surprised that I don't have it on 0:16:43.760 --> 0:16:45.720 in the background. I just started watching it last night. 0:16:45.720 --> 0:16:49.080 It's so good, guys. I've heard so many people tell 0:16:49.120 --> 0:16:51.000 me that's really really good. I have not. I have 0:16:51.160 --> 0:16:54.040 not started to watch it, but I've heard enough good 0:16:54.040 --> 0:16:55.920 things about it that I'm I'm willing to give it 0:16:55.960 --> 0:16:58.560 a shot. It is it is for mature audiences, or 0:16:58.560 --> 0:17:00.960 for immature mature audiences, her, however you want to state 0:17:01.000 --> 0:17:03.880 that not for kids, right? Not for kids. Let's let's 0:17:03.880 --> 0:17:05.679 put it that way, because I am not mature, and 0:17:05.680 --> 0:17:07.280 I thought you were just telling me that I couldn't 0:17:07.280 --> 0:17:11.000 watch the show. Um uh, They've got upcoming shows from 0:17:11.000 --> 0:17:13.840 from mickeyger Vas, Derek Um and since h from no 0:17:13.920 --> 0:17:19.480 Wachowski siblings the Wakakis. Yeah, excellent. So you know that's 0:17:19.480 --> 0:17:21.960 that's a big deal that this idea not only getting 0:17:21.960 --> 0:17:24.720 these exclusive deals from other content creators, but to create 0:17:24.760 --> 0:17:27.840 your own content. They're getting into this game. Uh. It's 0:17:27.880 --> 0:17:32.679 interesting also because the way Netflix generates revenue is through subscriptions, right, 0:17:32.720 --> 0:17:36.160 they don't they don't have ads in their shows and uh, 0:17:36.200 --> 0:17:39.160 and we'll contrast that with some of the other stuff 0:17:39.200 --> 0:17:41.159 that we'll talk about in a little bit. So there 0:17:41.160 --> 0:17:44.560 are no ads and they're getting it mainly through subscriptions. 0:17:44.600 --> 0:17:47.720 And from what I can tell, Netflix does not really 0:17:47.800 --> 0:17:50.720 let anyone know how many people are watching any given 0:17:50.760 --> 0:17:54.080 title necessarily unless it's say a huge deal and they'll say, 0:17:54.119 --> 0:17:57.240 like over x million people watch this one thing right 0:17:57.240 --> 0:17:59.760 there there, They're being pretty pretty under wraps about it. Yeah, 0:17:59.760 --> 0:18:03.960 So that leads you to wonder is the content creation 0:18:04.080 --> 0:18:07.119 business working for Netflix? Is that is that adding to 0:18:07.160 --> 0:18:09.960 their bottom line? Are they getting more subscribers because of it? 0:18:10.160 --> 0:18:12.919 I think that's what they're trying to figure out right now. Um, 0:18:13.040 --> 0:18:15.760 you know they I I read something that said that 0:18:15.800 --> 0:18:18.760 they could they can see themselves um doubling their current 0:18:18.800 --> 0:18:22.280 content output UM in in the next couple of years 0:18:22.280 --> 0:18:25.680 and even going up to twenty pretty soon. And they're 0:18:25.720 --> 0:18:29.160 looking to get into a documentary production and stand up specials, 0:18:29.520 --> 0:18:33.760 even even which are Spanish soaps. Hodgeman's ragnar Rock was 0:18:33.800 --> 0:18:37.160 a Netflix exclusive, right, yeah, yeah, it was creative for them. 0:18:37.280 --> 0:18:41.000 They're they're being compared to to HBO, Showtime, AMC, these 0:18:41.000 --> 0:18:45.280 big cable heavy hitters um and uh. Ted Serrandos, the 0:18:45.560 --> 0:18:48.440 chief content officer, told g Q in February, the goal 0:18:48.560 --> 0:18:52.600 is to become HBO faster than HBO can become us. Wow, 0:18:53.080 --> 0:18:55.960 that's interesting. That's a really good point because of course 0:18:56.359 --> 0:18:59.639 HBO does have its own Hbo Go service, but you 0:18:59.640 --> 0:19:02.080 have to be a subscriber through cable package in order 0:19:02.119 --> 0:19:04.520 to access it. Yeah, you have to be a double subscriber, right, 0:19:04.520 --> 0:19:06.520 you have to subscribe to cable and you have to 0:19:06.520 --> 0:19:08.920 have a cable subscription that includes HBO in the first 0:19:08.960 --> 0:19:12.960 place before you can have excess HBO Go. So yeah, yeah, yeah, 0:19:12.960 --> 0:19:15.480 And it's really interesting. I mean, you know, the production process. 0:19:15.520 --> 0:19:17.679 These shows are going from pitch to series with no 0:19:17.840 --> 0:19:21.760 pilots in advance, UM, which is allowing Netflix to put 0:19:21.800 --> 0:19:23.919 money into projects that they really believe in, rather than 0:19:23.960 --> 0:19:27.000 playing the odds game of throwing up a single expensive 0:19:27.040 --> 0:19:29.520 episode to see whether or not people like it. They 0:19:29.560 --> 0:19:32.520 can they can really curate what they're putting out there. Yeah, 0:19:32.520 --> 0:19:34.320 it's interesting. And also because they don't have to sell 0:19:34.320 --> 0:19:36.560 it against ads, they don't have to worry about not 0:19:36.680 --> 0:19:42.000 getting support from from ad from different other companies, for example, 0:19:42.080 --> 0:19:44.399 for a show about women in prison that has a 0:19:44.480 --> 0:19:47.280 largely female cast and deals with a lot of gender 0:19:47.320 --> 0:19:49.800 issues as something that you probably wouldn't see on a 0:19:49.800 --> 0:19:53.560 lot of traditional cable companies. So um and and it's 0:19:53.600 --> 0:19:57.000 it's it's paying off in terms of critical acclaim. They 0:19:57.040 --> 0:20:00.720 just got fourteen Emmy nominations for Original con tent. Yeah, 0:20:00.760 --> 0:20:02.520 and that's, by the way, we should point out that 0:20:02.560 --> 0:20:04.760 the this year, this is the first time we're starting 0:20:04.800 --> 0:20:08.680 to see Emmy nominations for the series for for streaming 0:20:08.760 --> 0:20:12.119 video for something that was not created by cable or broadcast. 0:20:12.720 --> 0:20:15.560 So that's also very interesting. But but so we've got 0:20:15.600 --> 0:20:19.000 two other companies to talk about. But before we do so, 0:20:19.280 --> 0:20:22.920 let's take a quick break to thank our sponsor. Alright, 0:20:23.000 --> 0:20:26.639 so we've covered Netflix from beginning to end thoroughly. I 0:20:26.680 --> 0:20:29.359 think let's, uh, let's move on to a different one. 0:20:29.440 --> 0:20:32.280 Let's talk about Hulu and Hulu Plus. All right, So, 0:20:32.400 --> 0:20:36.600 um so, Hulu period and not. Hulu Plus launched in 0:20:36.800 --> 0:20:39.600 two thousand eight. It was it was a joint effort 0:20:39.640 --> 0:20:43.080 from NBC Universal and at that point News Corporation, you know, 0:20:43.160 --> 0:20:48.480 Murdox Fox, Fox Corporation, UM, which which was interesting in 0:20:48.520 --> 0:20:51.440 and of itself that these two major cable cable providers 0:20:51.480 --> 0:20:56.080 were playing nice, We're joining forces to create something interesting. 0:20:58.520 --> 0:21:00.679 I don't know you watched those Alec ball win spots 0:21:00.720 --> 0:21:04.080 where he would he was convincing everyone that who was 0:21:04.080 --> 0:21:06.040 really just a front for aliens to take over, And 0:21:06.040 --> 0:21:08.399 I'm like, how is this supposed to sell me on watching? 0:21:08.440 --> 0:21:10.080 I mean, I'm going to because now I got to 0:21:10.119 --> 0:21:12.480 find out what happens in these commercials. But right right, yeah, 0:21:12.480 --> 0:21:14.840 I know the commercials with him and Eliza Dick Shoo 0:21:14.880 --> 0:21:19.679 did those are great. Hulu Plus launched in and that 0:21:19.760 --> 0:21:24.000 was the subscription based end. Now, what's one thing that 0:21:24.040 --> 0:21:26.919 says the Hulu and Hulu Plus apart from Netflix is 0:21:27.080 --> 0:21:32.160