WEBVTT - TechStuff Classic: Videos In the Stream 0:00:04.400 --> 0:00:07.760 Welcome to text Stuff, a production from I Heart Radio. 0:00:12.039 --> 0:00:14.600 Hey there, and welcome to tech Stuff. I'm your host, 0:00:14.720 --> 0:00:17.680 Jonathan Strickland. I'm an executive producer with I Heart Radio 0:00:17.720 --> 0:00:20.000 and a love of all things tech, and it is 0:00:20.079 --> 0:00:23.880 time for a tech Stuff classic episode. This episode originally 0:00:23.880 --> 0:00:28.400 published on September twenty three, two thirteen. It is titled 0:00:28.800 --> 0:00:32.720 videos in the Stream. That is what we are. So 0:00:32.800 --> 0:00:35.320 let's take a listen. There are a lot of different 0:00:35.560 --> 0:00:39.640 technologies out there that are all about streaming content over 0:00:39.680 --> 0:00:43.160 the Internet, your television or computer. Even YouTube. You could argue, 0:00:43.240 --> 0:00:46.520 is is it content provider? Oh sure, sure I can. 0:00:46.560 --> 0:00:49.239 I view YouTube all the time when I'm at home. 0:00:49.280 --> 0:00:51.159 There's this great series I love to watch at home 0:00:51.200 --> 0:00:54.880 on my big television. It's called Forward Thinking. It is amazing. 0:00:54.920 --> 0:00:58.640 The host is uber uber Hut and so I watched 0:00:58.640 --> 0:01:01.720 that all the time at home on my big television 0:01:01.920 --> 0:01:04.559 and it's great. I mean, you know, it is filmed 0:01:04.560 --> 0:01:06.640 with a red one so so the I mean, yeah, 0:01:06.680 --> 0:01:10.600 actually we upgraded to a four km J to four K. 0:01:10.880 --> 0:01:12.840 I mean they went from to K to four K. 0:01:13.560 --> 0:01:16.520 So they're, like we said, a lot of different choices 0:01:16.560 --> 0:01:19.200 out there, but let's focus on probably the I would 0:01:19.280 --> 0:01:22.040 argue this is probably the most well known name. And 0:01:22.200 --> 0:01:24.600 in the interest of full disclosure, we're gonna be talking 0:01:24.600 --> 0:01:27.319 about Netflix, and Netflix has been one of our sponsors 0:01:27.319 --> 0:01:29.000 in the past. They are one of our sponsors for 0:01:29.080 --> 0:01:31.399 tech stuff. But that we're just going to talk about 0:01:31.440 --> 0:01:34.920 the way that it works and how it kind of started. 0:01:34.959 --> 0:01:37.840 So if you look all the way back to ninete 0:01:39.000 --> 0:01:43.479 that's when the company Netflix formed, and at that time 0:01:43.640 --> 0:01:46.160 it was just kind of an idea. It hadn't even 0:01:46.720 --> 0:01:49.160 there wasn't a business there yet. That was really kind 0:01:49.160 --> 0:01:52.120 of the paperwork, so it wasted on paper. It wouldn't 0:01:52.120 --> 0:01:58.160 be until that they actually launched a subscription DVD mail 0:01:58.480 --> 0:02:02.800 to home plan plan. Yeah, they were offering up rentals 0:02:02.840 --> 0:02:06.520 and sales, and but it was when the famous subscription 0:02:06.640 --> 0:02:09.520 service came in. That idea where you would make up 0:02:09.520 --> 0:02:12.680 a list of DVDs that you were really excited about seeing, 0:02:12.760 --> 0:02:14.160 and then they would send you one and it would 0:02:14.160 --> 0:02:16.080 sell on your coffee table for four months, and then 0:02:16.120 --> 0:02:18.000 you'd think, I never really got around to watching that, 0:02:18.040 --> 0:02:19.359 but I want to see the next thing on my list, 0:02:19.360 --> 0:02:21.240 and you send it back without ever watching. It was 0:02:21.280 --> 0:02:25.160 that just me Okay, good, I'm glad it wasn't just me. Um, 0:02:25.240 --> 0:02:27.639 I swear I'm going to see The Prestige one day. 0:02:27.840 --> 0:02:30.560 Oh you should. I know. It's a terrific film. It's 0:02:30.560 --> 0:02:33.520 said on my coffee table for four months, and that's 0:02:33.360 --> 0:02:35.280 a that's a that's a shame. I know, I know. 0:02:35.480 --> 0:02:40.320 But anyway, they were strictly physical media at first. In fact, 0:02:40.400 --> 0:02:42.920 for most of their their existence if you look at 0:02:42.960 --> 0:02:45.760 the full timeline, Yeah, they didn't even debut their watch 0:02:45.840 --> 0:02:49.040 instantly feature until two thousand seven, and they did not 0:02:49.320 --> 0:02:53.480 provide unlimited streaming content until early two thousand eight. Yeah, 0:02:53.480 --> 0:02:55.919 and two thousand seven it was incredibly limited, and even 0:02:55.960 --> 0:02:58.600 two thousand eight when you look at this is one 0:02:58.639 --> 0:03:01.520 of those criticisms that are that is often leveled by 0:03:01.600 --> 0:03:04.799 by people at Netflix, which is, you know, I look 0:03:04.840 --> 0:03:07.200 at what you have available on your DVD list, and 0:03:07.200 --> 0:03:09.320 then I look at what you have available on your 0:03:09.440 --> 0:03:13.480 instant library list, and y'all, there's stuff I want to 0:03:13.480 --> 0:03:16.360 watch that just like I can't see on that instant side. 0:03:16.440 --> 0:03:20.560 And this is because there are some really complex deals 0:03:20.560 --> 0:03:23.520 going on in the back end between Netflix, which is 0:03:23.520 --> 0:03:28.800 a service provider, and the content creators that make the 0:03:29.080 --> 0:03:32.320 content to Netflix. So Netflix has to create and this 0:03:32.400 --> 0:03:35.560 is the same with other services as well. They have 0:03:35.640 --> 0:03:39.200 to enter into these agreements with various content creators to 0:03:39.280 --> 0:03:43.560 be able to broadcast stuff over streaming, the same way 0:03:43.600 --> 0:03:48.240 that a cable channel would license to content. Right now, 0:03:48.280 --> 0:03:50.800 in the case with the cable company, very similar, anyway, 0:03:51.000 --> 0:03:52.800 very similar. In the case with the cable companies, they're 0:03:52.800 --> 0:03:56.480 looking at channels or bundles of channels. So but with 0:03:56.960 --> 0:03:59.440 you know, with Netflix, it might be it might be 0:03:59.480 --> 0:04:02.280 a little more pick and choose. So instead of saying 0:04:02.640 --> 0:04:07.760 I want everything that MTV produces when it comes to 0:04:07.920 --> 0:04:11.440 their original content, I want every single show, it may 0:04:11.480 --> 0:04:15.760 be that I want these five shows that MTV produces, 0:04:15.760 --> 0:04:18.239 but that's the only five and the and in this case, 0:04:18.360 --> 0:04:21.000 those agreements can go through the instead of a cable company, 0:04:21.000 --> 0:04:23.880 where it's kind of an all or nothing proposition. UH, 0:04:24.040 --> 0:04:26.720 services like Netflix can enter into these agreements where they 0:04:26.760 --> 0:04:29.200 get certain things but not other things. And in some 0:04:29.240 --> 0:04:33.360 cases it's not necessarily uh to the benefit of Netflix. 0:04:33.400 --> 0:04:35.960 It might be the case that the content creator says, 0:04:36.320 --> 0:04:38.159 you know, this is my best stuff and I want 0:04:38.240 --> 0:04:42.120 to make uh my money. Going through the traditional broadcast 0:04:42.240 --> 0:04:45.120 or cable route and then make more money through DVD 0:04:45.240 --> 0:04:48.680 sales whatever. Um, I don't want to provide this to 0:04:48.960 --> 0:04:52.440 your subscribers. So it's a very complicated dance that Netflix 0:04:52.440 --> 0:04:55.239 has to do every time. It's trying to get more content, 0:04:55.320 --> 0:04:58.599 and obviously, from a consumer standpoint, you want there to 0:04:58.600 --> 0:05:01.600 be as much content in which ever service you are 0:05:01.680 --> 0:05:06.880 subscribing to. Also, to make matters even more complicated, there 0:05:06.920 --> 0:05:11.120 are issues about what kind of content can be shown where. So, 0:05:11.160 --> 0:05:14.680 in other words, if I'm a Netflix customer in Canada, 0:05:15.279 --> 0:05:17.839 the options I have are different than the ones I 0:05:17.839 --> 0:05:20.640 would have in the United States. If I were a 0:05:20.680 --> 0:05:23.159 customer somewhere else in the world, I would have that 0:05:23.240 --> 0:05:25.520 same sort of issue. Right, And that's again because all 0:05:25.520 --> 0:05:29.360 of these licensing agreements are are very conditional. Yeah, some 0:05:29.480 --> 0:05:32.000 of them are conditionally regionally. Some of them are conditional 0:05:32.320 --> 0:05:35.599 based upon the type of equipment you're using to watch 0:05:35.760 --> 0:05:39.120 something on. Right. I don't think Netflix has that issue 0:05:39.160 --> 0:05:41.120 as much, but we will, but we will get into 0:05:41.200 --> 0:05:45.400 that with some of our other discussions. UM As of thirteen, 0:05:45.440 --> 0:05:48.880 there are about twenty nine point eight million Netflix subscribers 0:05:48.880 --> 0:05:54.320 in the US and another seven point six million worldwide, um, 0:05:54.360 --> 0:05:56.720 which is which is up from twenty million at the 0:05:56.720 --> 0:06:01.320 start of so and so. And you know, to another 0:06:01.720 --> 0:06:03.880 judge of another way to judge how popular they are 0:06:03.960 --> 0:06:08.200 based upon, not just from a subscriber account, is how 0:06:08.279 --> 0:06:14.320 much traffic Netflix generates on the interwebs. Right. Um, it 0:06:14.480 --> 0:06:19.359 supposedly Netflix accounts for one third of streaming video on 0:06:19.400 --> 0:06:23.599 any given day. Yeah. Um, that's that's twice what YouTube does. Yeah, 0:06:23.600 --> 0:06:27.080 and keep in mind YouTube. Now, YouTube is generating content 0:06:27.240 --> 0:06:30.400 at a crazy pace. We've talked about this. It's like 0:06:30.720 --> 0:06:34.679 a hundred hours of content every minute, So every minute 0:06:34.720 --> 0:06:37.320 that goes by, another hundred hours worth of content gets 0:06:37.360 --> 0:06:41.000 added to YouTube. But if you're looking at actual traffic 0:06:41.000 --> 0:06:45.520 of people watching stuff, Netflix outstrips at three to one. Now, 0:06:45.600 --> 0:06:47.800 that might also be because a lot of the content 0:06:47.800 --> 0:06:49.760 on Netflix is long form and a lot of the 0:06:49.760 --> 0:06:53.440 content on YouTube is very short form, and Netflix provides 0:06:53.480 --> 0:06:56.760 a lot more in HD. Yes, that's also true. So 0:06:57.160 --> 0:07:00.120 in other words, those file sizes are are bigger for 0:07:00.240 --> 0:07:03.640 multiple reasons, not only because they are longer, as in 0:07:04.000 --> 0:07:06.040 they last longer, like it's a thirty minute show or 0:07:06.080 --> 0:07:08.920 twenty minute but it's a larger file to begin like exactly. Um, 0:07:09.240 --> 0:07:12.360 as of November twelve, this accounted for about a third 0:07:12.520 --> 0:07:17.040 of all US downstream traffic. Uh. Yeah, this is uh. 0:07:17.840 --> 0:07:20.560 It's also why a lot of Internet provider companies i 0:07:20.720 --> 0:07:23.680 sp s are starting to talk about caps. Yeah, where 0:07:23.680 --> 0:07:27.480 they were like especially initially when Netflix Instant was starting off. Now, 0:07:27.520 --> 0:07:31.040 back then, there weren't as many customers who were taking 0:07:31.040 --> 0:07:33.559 advantage of it. I would say that this is something 0:07:33.600 --> 0:07:36.960 that's really starting to explode. Over the last like maybe 0:07:36.960 --> 0:07:39.440 a year or two, we've really seen it like take off. 0:07:39.800 --> 0:07:42.800 Before that, there were early adopters who were very enthusiastic 0:07:42.840 --> 0:07:44.120 about it, and then there were a few other people 0:07:44.160 --> 0:07:46.480 who were curious about it, and some people had it, 0:07:46.880 --> 0:07:49.200 you know, added on as part of their DVD service 0:07:49.240 --> 0:07:52.160 and so they played with it once or twice. UM. 0:07:52.200 --> 0:07:53.760 Now that one of I think one of the things 0:07:53.840 --> 0:07:55.880 Netflix did that they did really well was they got 0:07:55.920 --> 0:07:59.000 their app on as many different platforms as possible. It's 0:07:59.000 --> 0:08:02.000 one of the things I thought this company's very savvy. 0:08:02.040 --> 0:08:04.400 They know what they're doing. They're on Xbox there on, 0:08:04.640 --> 0:08:08.080 you know, PlayStation there on we They're on you know, computers, 0:08:08.160 --> 0:08:13.440 stale out, telephone and tablet use. Yeah, so smartphone anyway, exactly. Yeah, 0:08:13.440 --> 0:08:16.240 so they like to call up and listen to my 0:08:16.280 --> 0:08:19.960 favorite movies. UM No, they really were very savvy. They 0:08:20.160 --> 0:08:23.120 got in front of as many eyeballs as possible, and 0:08:23.160 --> 0:08:26.440 that definitely helped a lot. Now, I haven't always been 0:08:26.520 --> 0:08:29.920 incredibly savvy. Back in back inn you guys might remember, 0:08:29.960 --> 0:08:33.800 there was the entire quick Ster debacle. Netflix was just 0:08:33.880 --> 0:08:37.040 going to become streaming only in a new company called 0:08:37.120 --> 0:08:40.520 Quickster would be all the DVDs and and that was 0:08:40.640 --> 0:08:44.560 after another controversial thing where where they were um planning 0:08:44.600 --> 0:08:47.320 on on splitting the DVD and streaming plans with like 0:08:47.360 --> 0:08:52.280 a fifty over price hike to to get both of them, um, 0:08:52.440 --> 0:08:54.240 which was still I mean because it had originally been 0:08:54.240 --> 0:08:55.720 like ten bucks a month and I was going up 0:08:55.760 --> 0:08:57.600 to like sixteen month bucks a month if you were 0:08:57.600 --> 0:09:00.200 going to have both DVDs and streaming, and that when 0:09:00.200 --> 0:09:02.240 they did push through, it almost makes me think that 0:09:02.240 --> 0:09:05.400 they were joking about Quickster in order to make the 0:09:05.480 --> 0:09:09.360 other things sound out. I remember seeing Facebook explode when 0:09:09.360 --> 0:09:12.360 this happened, and Twitch exploded to I had friends who 0:09:12.360 --> 0:09:16.880 were immediately and vociferously proclaiming that they would leave Netflix 0:09:16.920 --> 0:09:20.880 never to return and burn the villages behind them, and 0:09:20.960 --> 0:09:23.920 so the ground was salt, whereas I was seeing, like, guys, 0:09:23.920 --> 0:09:27.679 I think you might be overreacting like that sounds like 0:09:27.720 --> 0:09:31.280 six dollars, But I mean, but stock fell from over 0:09:31.600 --> 0:09:34.040 three hundred bucks a share to two under a hundred 0:09:34.120 --> 0:09:38.679 and Read Hastings, the CEO, the founder of Netflix, apologized 0:09:38.720 --> 0:09:42.320 publicly for it. He you know, this is not something 0:09:42.360 --> 0:09:45.400 that happens very frequently where you have a CEO offer 0:09:45.480 --> 0:09:48.920 up an apology. I mean Tim Cook did for Apple. 0:09:49.200 --> 0:09:50.920 That's like the only other one I can think of 0:09:50.920 --> 0:09:53.800 off the top of my head. So you've had you know, 0:09:53.840 --> 0:09:56.240 we've of course seen stories about ceo is admitting that 0:09:56.320 --> 0:09:59.559 certain products in the company's past was were possibly a 0:09:59.600 --> 0:10:02.880 mistake or badly handled. But this was an outright apology 0:10:02.920 --> 0:10:05.800 to the public saying, you know, guys, um I was 0:10:05.840 --> 0:10:08.960 thinking it was a great idea. I clearly you guys 0:10:09.040 --> 0:10:11.320 feel differently. We are not going to do it, so 0:10:11.440 --> 0:10:14.160 don't worry. Yeah, but that was that was a big 0:10:14.200 --> 0:10:16.960 strike against Netflix at that point when they tried to 0:10:17.000 --> 0:10:20.600 do the whole Netflix Quickster thing. Now, Netflix has made 0:10:20.640 --> 0:10:24.120 some pretty big deals, not all of them are exclusive deals, 0:10:24.200 --> 0:10:26.280 I should say, we're gonna be talking about some of 0:10:26.280 --> 0:10:29.320 the deals that they've made with various content creators so 0:10:29.360 --> 0:10:32.240 that they can be allowed to show certain types of 0:10:32.280 --> 0:10:36.280 content on their channels or on their service. I should say, Uh, 0:10:36.480 --> 0:10:39.440 one of them, which was announced the day that we 0:10:39.520 --> 0:10:42.400 are or I think two days before we actually record 0:10:42.440 --> 0:10:45.760 this podcast, is an exclusive deal, and that is that 0:10:45.800 --> 0:10:48.880 Netflix and the Weinstein Company or Weinstein Company, depending on 0:10:48.880 --> 0:10:51.679 how you want to pronounce it, announced that they are 0:10:51.720 --> 0:10:54.680 going to enter a multi year premium pay TV window 0:10:54.679 --> 0:10:58.000 agreement in the United States starting in ten and that 0:10:58.120 --> 0:11:02.280 Netflix will become the quote ex elusive US subscription television 0:11:02.320 --> 0:11:06.120 service for first run films from the Weinstein Company end quote. 0:11:06.679 --> 0:11:11.360 So this would include movies made under TWC, the Weinstein Company, 0:11:11.400 --> 0:11:14.920 and also Dimension Films, and that would become available to 0:11:14.960 --> 0:11:19.520 Netflix members who are subscribed to Netflix. So the interesting 0:11:19.559 --> 0:11:22.800 thing here to me is that, uh, it is exclusive. 0:11:22.800 --> 0:11:25.319 That means you're not going to find these same titles 0:11:25.360 --> 0:11:27.360 on the other services we'll be talking about a little 0:11:27.360 --> 0:11:31.720 bit later. Uh. Now, that's not the only deal they've 0:11:31.720 --> 0:11:36.559 made recently. They made a big deal with Disney Netflix. Yeah, 0:11:36.600 --> 0:11:41.400 so that agreement starts in seventeen. We're talking long term 0:11:41.480 --> 0:11:43.920 goals here, folks. Now you might notice that there are 0:11:43.960 --> 0:11:48.000 some Disney titles now, right, which was part of this 0:11:48.080 --> 0:11:51.840 deal as well, But the larger percentage of Disney films 0:11:52.040 --> 0:11:55.760 will be available beginning in twenty seventeen. Again not necessarily exclusive, 0:11:56.360 --> 0:12:00.720 but they will be available on Netflix and again depending 0:12:00.760 --> 0:12:05.200 upon where you are, because these the regional rules still 0:12:05.240 --> 0:12:08.040 are in effect here. Then you also have the deal 0:12:08.120 --> 0:12:11.400 Netflix made with DreamWorks. Now, that agreement begins in ten, 0:12:11.400 --> 0:12:14.000 so that's a little earlier. And we I have already 0:12:14.040 --> 0:12:17.120 seen some Dreamwork stuff available there too, but it's all 0:12:17.320 --> 0:12:20.000 kind of like they're second or third tier titles, I 0:12:20.000 --> 0:12:23.000 would say, or sequels to movies that I like. I 0:12:23.040 --> 0:12:24.760 would watch this, but I haven't seen the first one 0:12:24.840 --> 0:12:27.640 and it's not available. Um, I'll have to wait till 0:12:28.240 --> 0:12:31.040 I suppose or get a DVD subscription. Now, you're just 0:12:31.080 --> 0:12:34.280 talking crazy talk, all right. So Netflix, of course is 0:12:34.320 --> 0:12:37.600 not the only one to make these deals, whether they're 0:12:37.600 --> 0:12:39.640 exclusive or not, in order to get content. That's kind 0:12:39.640 --> 0:12:41.400 of how the game is played, right, sure, sure, and 0:12:41.520 --> 0:12:43.640 and a lot of it is is kind of being 0:12:44.000 --> 0:12:47.880 continually mixed up between these top three companies. There's there's like, 0:12:47.960 --> 0:12:50.880 for example, I think Amazon just stole Downton Abbey out 0:12:50.880 --> 0:12:55.120 from under Netflix. Um yeah, but like and I think 0:12:55.600 --> 0:12:58.080 for example, a Netflix had a deal with Viacom for 0:12:58.120 --> 0:13:00.120 a while and then they're letting the deal expire and 0:13:00.200 --> 0:13:03.520 they're not planning on renewing it. But other services are 0:13:03.520 --> 0:13:07.280 going to definitely work with Viacom. So it's it's going 0:13:07.320 --> 0:13:09.680 to change over time. But there's something else that all 0:13:09.720 --> 0:13:12.640 these companies are doing too, right, Yeah, and and this 0:13:12.720 --> 0:13:15.600 is something that no one else certainly will have, and 0:13:15.600 --> 0:13:19.280 that is Netflix's original content. Um. This is and this 0:13:19.320 --> 0:13:21.600 is kind of a big deal because you know, up 0:13:21.679 --> 0:13:26.400 until up until um, none of these streaming service on 0:13:26.480 --> 0:13:30.520 demand companies were creating their own new stuff, right. They were. 0:13:30.559 --> 0:13:32.920 They were a pipe, but they weren't creating any of 0:13:32.920 --> 0:13:34.400 the stuff that was in the pipe. They were just 0:13:34.440 --> 0:13:38.000 giving access to it. Um. But but as of February twelve, 0:13:38.360 --> 0:13:41.679 they they offered a show called Lily Hammer, which was 0:13:41.720 --> 0:13:44.880 a co production with a Norwegian producer and not that 0:13:44.920 --> 0:13:47.720 many people in the United States have probably even heard 0:13:47.720 --> 0:13:49.760 of it, and it was pretty big in Norway. But 0:13:50.280 --> 0:13:53.160 House of Cards came out. I don't have a date 0:13:53.200 --> 0:13:55.400 on that, but the House of Cards came out I 0:13:55.400 --> 0:13:57.640 think either. I think House of Cards came out late. 0:13:58.679 --> 0:14:01.679 And that was the first US kind of I'm not 0:14:01.679 --> 0:14:05.160 gonna say blockbuster but um but but the first popular 0:14:05.160 --> 0:14:07.400 original show, right, And keep in mind, this was a 0:14:07.480 --> 0:14:10.000 remake of a show that was made in the UK, 0:14:10.480 --> 0:14:13.400 but the US version had Kevin Spacey in the lead 0:14:13.480 --> 0:14:16.240 role and that was a big which, Yeah, you know, 0:14:16.320 --> 0:14:20.200 you're talking about an award winning film actor playing a 0:14:20.240 --> 0:14:24.080 part in a series that was doing something really different. Now, 0:14:24.120 --> 0:14:27.080 what Netflix was doing was not just producing this series, 0:14:27.480 --> 0:14:30.600 which would have been remarkable all on its own, and 0:14:30.640 --> 0:14:35.560 then giving the exclusive look at the series to its members. 0:14:35.560 --> 0:14:38.280 You could not watch it anywhere else other than if 0:14:38.280 --> 0:14:40.400 you were to maybe buy the DVD set, which you 0:14:40.480 --> 0:14:44.240 can do. But they also offered up the entire series 0:14:44.680 --> 0:14:47.560 at one time, so instead of telling that like you do, 0:14:47.680 --> 0:14:50.120 you can just you know, crunch through the entire series 0:14:50.120 --> 0:14:51.720 you want a day or two if you want to 0:14:51.760 --> 0:14:54.920 just marathon it, you totally could because the first season 0:14:54.920 --> 0:14:57.640 of it anyway, first season of it. So this was 0:14:57.680 --> 0:15:00.320 a big difference from the way we usually can conto 0:15:00.400 --> 0:15:02.920 media because normally it's talking about something that's on a 0:15:02.960 --> 0:15:07.320 regular basis, it might be serialized. Yeah. So Kevin Spacey 0:15:07.400 --> 0:15:09.200 actually had something to say about this. I've got a 0:15:09.240 --> 0:15:11.960 quote from him. Yeah, he says, I'm not gonna do it. 0:15:12.040 --> 0:15:16.800 Kevin Spacey up so much. Yeah. By the way, fantastic 0:15:16.840 --> 0:15:21.280 impressionist Kevin Spacey. Anyway, So here's what he had to say. Clearly, 0:15:21.320 --> 0:15:24.240 the success of the Netflix model releasing the entire season 0:15:24.240 --> 0:15:26.080 of House of Cards at once proved one thing. The 0:15:26.120 --> 0:15:29.320 audience wants the control, they want the freedom. If they 0:15:29.360 --> 0:15:32.000 want to binge, as they've been doing on House of 0:15:32.040 --> 0:15:34.640 Cards and lots of other shows, then we should let 0:15:34.680 --> 0:15:37.240 them binge. I can't tell you how many people have 0:15:37.280 --> 0:15:40.200 stopped me on the street and said thanks, you sucked 0:15:40.240 --> 0:15:43.040 three days out of my life. So but I mean, 0:15:43.080 --> 0:15:45.800 that's that's an example of how this model worked. And 0:15:45.840 --> 0:15:49.720 they followed that up with other examples like Arrested Development 0:15:49.720 --> 0:15:53.520 season four YEP, which, by the way, I marathon when 0:15:53.560 --> 0:15:56.960 it came out, Hemlock Grove, which I did not watch. 0:15:57.120 --> 0:15:59.040 I have not watched any of that either, or in 0:15:59.080 --> 0:16:01.560 Just the New Black, which I am currently I am 0:16:01.640 --> 0:16:05.480 only not watching it right now because I don't even 0:16:05.480 --> 0:16:07.160 know why. I'm surprised that I don't have it on 0:16:07.200 --> 0:16:09.160 in the background. I just started watching it last night. 0:16:09.160 --> 0:16:12.520 It's so good, guys. I've heard so many people tell 0:16:12.520 --> 0:16:14.440 me that's really really good. I have not. I have 0:16:14.560 --> 0:16:17.480 not started to watch it, but I've heard enough good 0:16:17.480 --> 0:16:19.360 things about it that I'm I'm willing to give it 0:16:19.360 --> 0:16:21.960 a shot. It is it is for mature audiences, or 0:16:22.000 --> 0:16:24.400 for immature mature audiences, however, however you want to state 0:16:24.440 --> 0:16:27.280 that not for kids, right, not for kids. Let's let's 0:16:27.320 --> 0:16:29.080 put it that way, because I am not mature, and 0:16:29.120 --> 0:16:30.720 I thought you were just telling me that I couldn't 0:16:30.720 --> 0:16:35.240 watch the show. Um. They've got upcoming shows from from Mikeegervass, 0:16:35.320 --> 0:16:41.160 Derek um and since eight from the Wachowski siblings, the Wakawskis. Yeah, excellent. 0:16:41.280 --> 0:16:44.080 So you know that's that's a big deal that this 0:16:44.160 --> 0:16:47.640 idea not only getting these exclusive deals from other content creators, 0:16:47.680 --> 0:16:51.000 but to create your own content. They're getting into this game. Uh. 0:16:51.080 --> 0:16:55.000 It's interesting also because the way Netflix generates revenue is 0:16:55.040 --> 0:16:57.880 through subscriptions, right, they don't they don't have ads in 0:16:57.920 --> 0:17:01.840 their shows and uh, and will contrast that with some 0:17:01.920 --> 0:17:03.560 of the other stuff that we'll talk about in a 0:17:03.560 --> 0:17:06.560 little bit. So there are no ads, and they're getting 0:17:06.560 --> 0:17:09.920 it mainly through subscriptions. And from what I can tell, 0:17:10.040 --> 0:17:12.920 Netflix does not really let anyone know how many people 0:17:12.920 --> 0:17:16.840 are watching any given title necessarily unless it's a huge 0:17:16.840 --> 0:17:19.440 deal and they'll say, like, over x million people watch 0:17:19.520 --> 0:17:22.000 this one thing right there there. They're being pretty pretty 0:17:22.080 --> 0:17:25.000 under wraps about it. Yeah, So that leads you to 0:17:25.119 --> 0:17:29.359 wonder is the content creation business working for Netflix? Is 0:17:29.400 --> 0:17:31.600 that is that adding to their bottom line? Are they 0:17:31.640 --> 0:17:34.439 getting more subscribers because of it? I think that's what 0:17:34.520 --> 0:17:36.880 they're trying to figure out right now. You know. They 0:17:37.320 --> 0:17:39.880 I read something that said that they could they could 0:17:39.880 --> 0:17:44.080 see themselves um doubling their current content output um in 0:17:44.080 --> 0:17:46.560 in the next couple of years and even going up 0:17:46.600 --> 0:17:50.120 to twenty pretty soon. And they're looking to get into 0:17:50.160 --> 0:17:54.720 a documentary production and stand up specials, even even which 0:17:54.720 --> 0:17:59.000 are Spanish soaps. Hodgeman's Ragnarok was a Netflix exclusive, right, Yeah, Yeah, 0:17:59.320 --> 0:18:02.359 it was creative for them. They're they're being compared to 0:18:02.359 --> 0:18:06.680 to HBO, Showtime, AMC, these big cable heavy hitters, UM 0:18:06.720 --> 0:18:10.560 and uh Ted Serrando's the chief content officer, told g 0:18:10.720 --> 0:18:13.359 Q in February. The goal is to become HBO faster 0:18:13.440 --> 0:18:18.040 than HBO can become us. Wow, that's interesting. That's a 0:18:18.119 --> 0:18:20.960 really good point because of course HBO does have its 0:18:20.960 --> 0:18:23.520 own Hbo Go service, but you have to be a 0:18:23.520 --> 0:18:26.360 subscriber through cable package in order to access it. Yeah, 0:18:26.400 --> 0:18:28.159 you have to be a double subscriber, right, You have 0:18:28.200 --> 0:18:30.119 to subscribe to cable and you have to have a 0:18:30.160 --> 0:18:32.960 cable subscription that includes HBO in the first place before 0:18:33.000 --> 0:18:36.400 you can have excess HBO Go. So yeah, yeah, yeah, 0:18:36.400 --> 0:18:38.920 And it's really interesting. I mean, you know the production process. 0:18:38.960 --> 0:18:41.119 These shows are going from pitch to series with no 0:18:41.280 --> 0:18:45.160 pilots in advance um, which is allowing Netflix to put 0:18:45.200 --> 0:18:47.359 money into projects that they really believe in, rather than 0:18:47.400 --> 0:18:50.440 playing the odds game of throwing up a single expensive 0:18:50.440 --> 0:18:52.959 episode to see whether or not people like it. They 0:18:52.960 --> 0:18:55.960 can they can really curate what they're putting out there. Yeah, 0:18:55.960 --> 0:18:57.760 it's interesting. And also because they don't have to sell 0:18:57.760 --> 0:19:00.480 it against ads, they don't have to worry about getting 0:19:00.480 --> 0:19:05.440 support from from ad from different other companies. For example, 0:19:05.520 --> 0:19:07.840 for a show about women in prison that has a 0:19:07.920 --> 0:19:11.040 largely female cast and deales with a lot of gender issues. 0:19:11.119 --> 0:19:13.400 That's something that you probably wouldn't see on a lot 0:19:13.520 --> 0:19:17.280 of traditional cable companies. So um and and it's it's 0:19:17.400 --> 0:19:20.560 it's paying off in terms of critical acclaim. They just 0:19:20.640 --> 0:19:24.600 got fourteen Emmy nominations for original content. Yeah, and that's, 0:19:24.640 --> 0:19:27.000 by the way, we should point out that the this year, 0:19:27.080 --> 0:19:29.159 this is the first time we're starting to see Emmy 0:19:29.200 --> 0:19:34.080 nominations for streaming video or something that was not created 0:19:34.200 --> 0:19:38.320 by cable or broadcast. Hey, guys, Jonathan from twenty here, 0:19:38.359 --> 0:19:40.920 we're going to take a quick break, but we will 0:19:40.960 --> 0:19:52.040 be right back. All right. So we've covered Netflix from 0:19:52.080 --> 0:19:55.600 beginning to end thoroughly. I think let's uh, let's move 0:19:55.600 --> 0:19:58.000 on to a different one. Let's talk about Hulu and 0:19:58.040 --> 0:20:02.320 Hulu Plus. All right. So, um so Hulu period and 0:20:02.440 --> 0:20:05.480 not Hulu Plus launched in two thousand eight. It was 0:20:05.600 --> 0:20:08.520 it was a joint effort from NBC Universal and at 0:20:08.560 --> 0:20:14.520 that point News Corporation, you know, Murdox, Fox Fox Corporation exactly, um, 0:20:14.640 --> 0:20:16.840 which which was interesting in and of itself that these 0:20:16.880 --> 0:20:20.359 two major cable cable providers were playing nice. We're joining 0:20:20.400 --> 0:20:26.600 forces to create something interesting. I don't know you watched 0:20:26.600 --> 0:20:30.000 those alec Baldwin spots where he would he was convincing 0:20:30.000 --> 0:20:32.679 everyone that who was really just a front for aliens 0:20:32.720 --> 0:20:34.760 to take over. And I'm like, how is this supposed 0:20:34.800 --> 0:20:36.520 to sell me on watching? I mean, I'm going to 0:20:36.640 --> 0:20:38.200 because now I got to find out what happens in 0:20:38.240 --> 0:20:40.880 these commercials. But right right, yeah, I know the commercials 0:20:40.880 --> 0:20:44.240 with him and Alianza Dick Shoo did those were great. 0:20:44.880 --> 0:20:49.920 Hulu Plus launched in and that was the subscription based end. Now, 0:20:50.040 --> 0:20:53.000 what's one thing that says the Hulu and Hulu Plus 0:20:53.000 --> 0:20:58.280 apart from Netflix is unlike Netflix, WHU content is AD supported, 0:20:58.359 --> 0:21:01.280 right right? Um? And the the deals that they make 0:21:01.280 --> 0:21:04.080 with the content providers. Um. Some of them are for 0:21:04.080 --> 0:21:06.840 for a straight licensing fee, some of them are strictly 0:21:07.280 --> 0:21:09.679 AD revenue based, and some of them are kind of 0:21:09.720 --> 0:21:13.760 a sticky gray area. Yes, this gets super complicated just 0:21:13.840 --> 0:21:17.880 in one example here. So you've got you've got shows 0:21:17.920 --> 0:21:20.440 that are to have ad breaks in them, whether it's 0:21:20.440 --> 0:21:22.680 in the subscription one or just the free version of 0:21:22.680 --> 0:21:27.840 the Hulu one. I believe that all content has ads 0:21:27.880 --> 0:21:30.600 in it, whether or not the content creator gets a 0:21:30.720 --> 0:21:34.639 share of the is the question, gotcha? So that's that's 0:21:34.800 --> 0:21:37.959 very that's that's very interesting all on its own. And 0:21:38.000 --> 0:21:41.720 then uh, on top of that, you know, you have 0:21:42.760 --> 0:21:45.760