[OLD BOY]

Originally Posted by Stuart

I wouldn't place too much stock in the Government's promises of "high speed" broadband everywhere in the country in 10 years.. The government doesn't have a great record when it comes to IT projects being delivered on time and on budget, and this is likely to be the largest project they've ever handled. While it isn't a government IT project as such (in that they will not be running the project or infrastructure), they are funding it, which means the likes of BT will be rubbing their hands waiting to get hold of the cash and deliver the minimum they can. Maybe I sound cynical, but I don't have much confidence in the way the government deals with contractors.

Regarding the comments of the Netflix CEO, what CEOs say can change. Yes, under certain circumstances, they can get in trouble with the authorities if what they say is later proved untrue. So, what tends to happen is that what the CEO says is vetted by the company lawyers before it is said, or if that can't happen, they issue a press release to clear up any confusion, and that press release is..

Now, on to the comment itself. Reed Hastings (Netflixs CEO) said "No advertising coming onto Netflix. Period.
Just adding relevant cool trailers for other Netflix content you are likely to love." . Sounds very definite, doesn't it? I'm fairly certain that had they left it there, that statement would have committed Netflix to never having advertising (although I am not a lawyer)..

So, they clarified.. They released a statement stating "We are not planning to test or implement advertising on the Netflix service. For some time, we've teased Netflix originals with short trailers after a member finishes watching a show. Some members in a limited test now are seeing teases before a show begins. We test hundreds of potential improvements to the service every year. Many never extend beyond that.". Note the phrase "We are not planning to test or implement advertising". It's not the same as "No advertising coming on to Netflix". It implies that they may test and may implement advertising at some point in the future, but have no plans to do so at the moment.

Note: I am not saying for sure whether they will or won't. I don't know. I personally believe they will eventually, whether they do so voluntarily or are forced. After all, they need to keep improving profits for shareholders and as competition increases, that may be difficult to do on subscriptions alone. I am saying that when the CEO said they would not, they backtracked slightly and are now hedging their bets.

Regarding Ultraflix, their service looks interesting, but bear in mind they are charging rental fees per film rather than a subscription, so it may actually work out a *lot* more expensive than other services.

Also, they proudly boast that their encoding is done with the help of "experts" at 4KStudios. I looked them up. Their website only states that they worked on several blockbuster movies. In my experience, most companies who work on any big movies (even blockbusters), tend to proudly boast what movies they've worked on. Some even include screenshots or clips showing their work. 4kstudios does neither. The only expert I can find they have hired is the guy who did the despecialized editions of Star Wars. While he did an excellent job on those, I can't find any evidence of him doing anything else in the entertainment industry (which is extremely odd).

The Government certainly don't have a good record when it comes to contractual arrangements with the private sector and I agree that it would be surprising if the BT contract went smoothly. However, it should be sorted within the next 10 years. I expect there may still be small pockets in remote areas who may not be covered, but broadband via satellite would be an option for them.

I agree that in time, Netflix could conceivably change its mind over advertising, but one can't base a whole argument about the future of streaming services on that supposition when the company itself says the opposite. A huge attraction to the Netflix model is the absence of advertisements and there would be a huge blowback from subscribers if Netflix tried to force commercials down everyone's throats. As I said to Harry, the only way I can see Netflix introducing commercials is as an alternative offer at a lower price, or free with a more limited menu. However, the current position of Netflix is that they will not seek to add commercials to their service.

There are those people who will pay more to watch Ultraflix on a PPV basis, but I am not one of them. I watch the occasional film on Virgin Movies, but that's it.