Netflix News

Ever heard the saying “Don't call us; we'll call you?” In everyday social situations that is an appallingly rude attitude to take. But on the Internet it's basic self-preservation — assuming you change “call” to “contact.”

For example: if you are a Netflix customer, it's perfectly fine if you wish to contact Netflix because you think you're having a problem. But if Netflix contacts you about a problem — don't believe it. Chances are it's not really Netflix, but a sleazy would-be thief impersonating Netflix in the latest attempt at a phishing scam.

Security blogger Jerome Segura of Malwarebytes discovered the latest Netflix-flavored phishing scam, which at heart is the same as any phishing attempt: a would-be hacker poses as a business or financial institution – Netflix, Microsoft, your bank or cell phone company or anyone else – and asks for your account numbers, passwords and other information identity thieves find useful.

Hacker bait

Segura pretended to “fall for” the Netflix phishing scam, with a computer he'd specifically set up to be used as hacker-bait. (Which is another way of saying: do not try this at home, or at work, with your own computer.) The phishers, whose IP address traced back to somewhere in India, took full control of Segura's computer and stole copies of files with names like “Banking2013” -- nothing any legitimate Netflix IT guy would need to see, in other words.

Segura posted screenshot highlights, along with a full seven-minute video of the phishers' trip through his bait-computer files, on Malwarebytes.

But suppose that you, unsuspecting, received the same bait email Segura got, and furthermore suppose you decide to ignore the “Don't call us; we'll call you” rule of Internet scam protection. Or maybe you're just legitimately scared – “Gee, maybe there is something wrong with my Netflix account, and the company really is trying to warn me about it!” What can you do to protect yourself?

Easy: if you want to contact Netflix (or any other company in existence) because you're worried about a possible warning email or phone call or text message allegedly from that company, do your own independent online search for the company's contact information, rather than accept the information offered in the email.

When Segura got that fake Netflix phishing message, for example, it urged him to call a certain 1-800 phone number, allegedly for Netflix's “Member services.” But if you go to Google and search for “Netflix member service number” (without quotation marks), you will discover that, in Netflix corporate terminology, there is no such thing as a “Member service number,” although there is a “Customer service number,” 1-866-579-7172, which is completely different from the number the phishers asked Segura to call.

You've got to hand it to Redbox. It thinks big. And right now it's thinking of big price increases in the DVDs, Blu-ray Discs and videogames it rents from its familiar big red boxes.

On Dec. 2, the daily price of a DVD rental will go from $1.20 to $1.50 and a Blu-ray Disc will from from $1.50 to $2. In January, daily rental rates for videogames will go from $2 to $3. 

“With new-release movies for $1.50 a day, Redbox remains the best value in new-release home entertainment,” CEO Scott Di Valerio said in a statement. “The pricing adjustments announced today will allow Redbox to continue to offer consumers high quality movies and games while making investments to enhance the customer experience.”

The company said it has conducted extensive market testing over the last few months and is confident the increased revenue will exceed any losses in market share. However, Redbox caters to lower-income customers who can't afford cable or satellite hook-ups, so it's always possible the big red box may hit a big red wall if it gets too aggressive with its pricing. 

Redbox operates vending kiosks at more than 35,000 locations, including gas stations and grocery stores, as well as at some Walgreens, Walmart and McDonald’s locations.

The company says that besides raising prices, it is starting a new "recommendation engine" that will help customers find movies that they're likely to enjoy. It's said to be similar to the algorithms used by Netflix, Amazon and other companies that offer suggestions based on past buying habits. 

Netflix had better watch it. There may not be room in town for both Netflix and Amazon Prime. Prime today got the drop on Netflix as it scored an exclusive deal to distribute a couple of FX shows -- "Justified" and "The Shield" -- online.

Amazon said it has reached a content licensing agreement with Sony Pictures Television to make Amazon Prime the exclusive location to watch FX's "Justified" and "The Shield."

Prime subscribers can watch the shows for free, while other Amazon visitors can purchase and download episodes for $1.99 apiece.

"Justified" is a gritty series bult around the deeds and misdeeds of Raylan Givens, a U.S. Marshal based in the backwater reaches of Kentucky, with Timothy Olyphant of "Deadwood" fame playing the lead.

It's been one of the most watched shows on Amazon Instant Video, where customers can purchase and download episodes for $1.99 each, and will now be available to Prime members at no additional cost, the company said.

In addition, Prime Instant Video will add the inner-city Los Angeles crime drama "The Shield" to its catalog.

“Justified" and "The Shield" are two fan favorites on Amazon,” said Brad Beale, Director of Digital Video Content Acquisition for Amazon. “We’re consistently looking for ways to make Prime even better – and one of the ways we’re doing that is adding shows like these that we know customers love.”

Amazon stole some thunder earlier this month when it acquired exclusive online rights to the PBS hit "Downton Abbey." 

So, would you like to see what your Facebook friends are watching on Netflix? How about letting your FB buddies see what you're watching?

That sounds spooky to a lot of people but it's apparently something Netflix customers have been saying they want, and now it's here. 

Netflix announced today that its U.S. members will be able to connect to Facebook and agree to share favorite TV shows and movies on Netflix. The company will be turning on the feature "over the coming days" and expects that all U.S. members will have access to the social feature by the end of the week.

"There are few better ways to find a movie or TV series you'll love than hearing about it from your friends," said Tom Willerer, vice president of product innovation at Netflix.  "Facebook already makes it easy for our international members to connect with friends over TV shows and movies and we're thrilled to now bring this experience to our U.S. members."

The feature has been available internationally for quite some time but, until recently, it was prohibited in the U.S. by something called the Video Privacy Protection Act, enacted in 1988 to keep prying eyes from finding out what movies consumers rented from Blockbuster and other video rental stores. It was amended by Congess last year after some intensive lobbying by Netflix.

The new Netflix/Facebook integration lets Netflix members see what their friends have watched by adding new "Friends' Favorites" and "Watched by your friends" rows to Netflix. Members also automatically share what they watch only within Netflix and can optionally share what they've watched to Facebook, Netflix said.

"People naturally talk about TV shows and movies and love to share their experiences," said Willerer. "Through the Netflix/Facebook integration we want to let Netflix members express themselves on Facebook and provide a digital version of the proverbial water cooler."

"By default, sharing will only happen on Netflix," Cameron Johnson, director of product innovation at Netflix, wrote in a blog post. "You'll see what titles your friends have watched in a new 'Watched by your friends' row and what they have rated four or five stars in a new 'Friends' Favorites' row. Your friends will also be able to see what you watch."

Johnson provides a step-by-step guide in this video:

Netflix is one of those ideas that has turned out to be so good that everyone else wishes they'd thought of it. Now, Verizon and Redbox are trying to take it one step further, with a new service that offers streaming movies and rental DVDs.

Oh wait, that's what Netflix does.

OK, let's try it again: Verizon and Redbox are offering a new service that offers streaming movies and DVDs you can rent from one of  those 35,000 Redbox vending machines.

But although it is starting out with a lot of vending machines and a lot of network capacity, the new venture -- called Redbox Instant by Verizon (catchy, eh?) -- is kind of short of movies. It only has 4,600 streaming titles, far fewer than Netflix, Amazon and Hulu Plus, the household names in the field.

But never mind that. The company says it's not trying to compete with Netflix, which offers not only movies but also thousands of TV shows old and new, and even a few Netflix-produced original series.

Redbox Instant will only offer movies. Old movies. New movies. Just, you know, movies. Many better titles are only available at the kiosks, which will take a little getting used to. 

It will cost you $8 a month -- which, coincidentally, is what Netflix charges -- to be part of this grand experiment. For that you can stream as many movies as often as you can stand it and also get credits good for four DVD rentals at one of those kiosks. Kick in another buck and you can upgrade to Blu-ray rentals.

Verizon and Coinstar -- Redbox' elegantly-named corporate parent -- are high on the idea anyway.

“When you consider the core elements the parties bring to this venture – our powerful brands; our national rental kiosk footprint; our anytime, anywhere network presence; and our mutual commitment to customer-focused innovation – it’s clear that Verizon and Redbox are a powerful entertainment team,” said Bob Mudge, president of Verizon consumer and mass business markets.

The companies have been working on this for the last year or so and they say it's finally ready for primetime at RedboxInstant.com.

Netflix will pay $9 million to resolve a privacy case that began in 2011. U.S. District Court Judge Edward J. Davila in San Jose, Calif., has granted final approval in the case that charged Netflix with retaining consumers' viewing histories and other personal information.

Plaintiffs Jeff Milan and Peter Comstock filed suit in early 2011 alleging violations of the Video Privacy Protection Act (VPPA), recently amended to allow wider sharing of viewing information. A wave of similar suits followed and the court consolidated the cases. After court-supervised mediation, the parties reached a settlement, which the court has now approved.

Those covered by the settlement include all Netflix subscribers as of the date of the preliminary approval, a group estimated at more than 62 million. Because of the unwieldy size of the class, individual class members will not receive any payment. Named plaintiffs Milan and Comstock will each receive a $30,000 payment and, after payment of court costs, attorney fees, etc., any remaining funds will go to nonprofit orgniazations and programs promoting consumer education and privacy protection.

Minimal recovery

"In light of the minimal monetary recovery" that individual class members would receive, the court agreed that the lump sum payments to further consumer education about privacy issues was an appropriate solution. Details can be found at www.videoprivacyclass.com.

This is what is known as a "cy pres" remedy, a structure that gives class members an indirect benefit rather than a check or other direct direct personal benefit. It is frequently used where proof of individual damage would be difficult. In this case, for example, it was not conclusively shown that any of the viewing histories or other data were distributed to third parties in a way that made individual users identifiable by name.

A similar settlement was used in privacy litigation involving Google Buzz. In that case, it was argued that tens of millions of Gmail users' personal information was wrongly disclosed when Google introduced its now-defunct Buzz social networking service. In that case, the settlement included an $8.5 billion payout to nonprofit groups working to further consumer privacy protection and security.

Besides making the payment, Netflix has agreed to "decouple" viewing histories from customers' identification and payment methods within one year of the settlement.   

In another sign that watching TV online has become mainstream, Mariott Hotels has announced it will begin replacing guest room TV sets with Internet-connected sets.

A press release announcing the move emphasizes a relationship with Netflix, noting guests will be able to watch Netflix content on TV sets in their rooms when they travel. However, Marriott isn't providing a Netflix subscription, only a way to watch it.

Smart TVs, connected to the Internet, will replace those that just offer typical cable channels. To watch Netflix, guests must access their own accounts or subscribe.

According to the press release the Internet-connected TVs will have the Netflix app. Presumably there will not be apps for Netflix competitors and no way to view other Internet content.

Changing consumer preferences

“Our collaboration with Netflix responds to changing consumer preferences in the way our guests access and watch content, while recognizing the leading role Netflix is playing in driving this transformation,“ said Matthew Carroll, vice president brand management, Marriott Hotels. “Because consumers are choosing to take their streaming content with them when they travel, Marriott Hotels is making the industry’s first rollout of Netflix a priority.”

While Marriott isn't exactly making everything on the Internet accessible through in-room TVs, it's a big step for any hotel chain. Many hotels, after all, sell premium content to guests. Watching Netflix for free could be stiff competition.

With the agreement, Marriott says it is the first hotel brand authorized to offer guests direct access to their Netflix accounts as part of its guest room entertainment offering. Netflix is currently available at 6 Marriott properties, with 6 more launching this summer.

All hotels by the end of 2016

The hotel plans to expand Internet TVs to 100 of its properties by the end of 2015, and to nearly all of its more than 300 properties in the U.S. by the end of 2016.

Marrriott says Internet TVs have been installed at:

• New York Marriott East Side
• San Jose Marriott
• Princeton Marriott
• Newport Marriott
• Dallas/Fort Worth Marriott Solana
• Bethesda Marriott Suites

The next properties to get Internet TVs are:

• Marriott Marquis Washington, DC
• San Francisco Marriott Marquis
• Atlanta Marriott Marquis
• Dayton Marriott
• San Juan Marriott Resort & Stellaris Casino
• Anaheim Marriott

The company says guests staying multiple days only have to login to their accounts once throughout their stay. When guests checkout, it says all account information is wiped clean from the televisions.

Marriott said a report from Accenture, showing more than half of U.S. consumers watch Internet television, was persuasive in moving it in that direction. In testing at hotels, the number of guests using any of the Internet apps on the guest room televisions was as high as 26%, depending on the property.

Netflix subscribers will notice that some recently released Hollywood blockbusters will disappear from the on-demand line-up soon.

The company has announced it is ending its relationship with Epix, the cable network that holds the rights to popular movies like Hunger Games: Catching Fire, World War Z, and Transformers: Age of Extinction.

The movies go away at the end of September when the Epix contract with Netflix expires. But if you think it is Epix that is pulling the plug on Netflix, then you would be mistaken.

Focusing on exclusive content

In an announcement Sunday, Netflix Chief Content Officer Ted Sarandos said Netflix has chosen not to renew its agreement because Epix movies are available from other providers. It's part of the company's strategy to focus on original and exclusive content.

It appears to be a very different situation from four years ago, when Netflix was primarily an on-demand movie service heavily dependent on Starz Entertainment's vast library. In September 2011, Starz announced it would not renew its contract with Netflix.

Netflix was willing to pay Starz's price for the movies, but that was not the issue. The issue, apparently, was that Netflix did not charge consumers enough to view the content.

“This decision is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content,” Starz CEO Chris Albrecht said at the time. “With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business."

Starz also licensed its content to cable TV providers, who charged a lot more for their services. The implication being that allowing Netflix to provide access to movies at $8 a month was a threat to services charging 10 times that amount.

Turning lemons into lemonade

Then an unexpected thing happened. Netflix did not crumble as perhaps many in the industry hoped it would. It began buying up rights to TV series – the only content it could find to replace the lost movies. Subscribers seemed to embace it.

“Binge watching” entered into the common vocabulary, as viewers would sit down and watch an entire season of a series in a weekend. It helped that many of the series that were available, like “Breaking Bad” and “Mad Men,” were of higher quality than most movies.

Since then, Netflix has more or less redefined itself and now has an emphasis on original programming, with series like the award-winning House of Cards and Orange is the New Black. Sarandos says the emphasis on original content will continue, and will also extend to feature films.

“Just like we’ve changed the game for TV watchers by releasing entire seasons around the world at the same time, we have begun making movies that will premiere on Netflix globally and in some cases, simultaneously in theaters,” Sarandos wrote in a blog post. “It will take us time to build a robust slate of original movies, but we’re hard at work on it with such great stars and directors as Brad Pitt, Ricky Gervais, Judd Apatow, Angelina Jolie, Sofia Coppola and Adam Sandler.”

Meanwhile, Epix films will be available elsewhere. The company signed a deal with Amazon Prime in 2012 and will begin distributing content through Hulu in October.