WebTVs Ready to GO
TVs that can connect to the internet vastly broaden one's entertainment and communication choices - movies, games, search, social networking, etc. - all without the need of a computer. TVs with connectivity (which are also WiFi enhanced) provide access to additional streaming content - TV programming, webcasts, internet radio stations like Pandora or Slacker, photo-sharing sites like Flickr and Picasa, and social content providers like YouTube.
WebTVs are currently available from most of the major TV manufacturers. Ranging in price from as low as $700 to over $3500 depending primarily on size, many are also 3D enhanced. Some models come with wand-shaped remotes that allow navigation of the on-screen menus with gestures. Others feature remotes with slide out keyboards, while others have touch screens.
All WebTVs are HD and most WiFi capable. I believe that consumers will transition to internet connected TVs quickly, as the temptation to use a device with a large screen and high quality sound for communication and entertainment will prove irresistible. I'm ready for one. I could be posting this on a 42" Panasonic 3D WebTV for under $900 with WiFI as a standard feature.
Box Office Recap
Transformers, Dark of the Moon (Paramount/Dream Works) scored a big second week, easily out-grossing new rivals : Horrible Bosses (Warner/New Line) and Zookeeper.
Sony/Columbia). Transformers' 13 day domestic gross at $267 million, made it this year's highest grosser, unseating The Hangover Part II (Warner). It should reach the $300 million mark by week's end and breezed through the $600 million mark worldwide.
Horrible Bosses, which took in a very good $32 million clinched second place; while Zookeeper racked by $23 million and took third. Cars 2 (Disney) and Bad Teacher (Sony/Columbia) - which has now grossed over $80 million - rounded out the top five at 4th and 5th place.
Released this week will be Harry Potter and the Deathly Hallows Part 2 (Warner) which will hopefully pull this year's gross within reach of 2010's results. July needs to tally up and additional $1.25 billion to reach 2010, and that's quite a major hurdle.
Netflix U.S. Customers Nudged To Use Streaming Option
As you know I have been keeping a very close watch on internet content streaming technology, as I believe it is going to have a major impact on the movie exhibition business.
Today, Netflix raised the monthly fee it charges for mail and on-line movie rental. The price hike is a move to get more subscribers to opt for the on-line streaming vs. DVD by mail service. Under the new price regime, subscribers that want both services will pay $15.98/month vs. the current $9.99/month charge. The $15.98 fee will entitle users to rent one DVD at a time plus unlimited streaming. The new fee structure takes effect immediately for new subscribers and September 1st for current customers.
As predicted, Netflix will be focusing on its streaming service and downplaying its DVD mailing service - one, to keep up with technology and its on-line competitors, such as Hulu and Amazon; and two, to save on costs (it only costs 5 cents to stream a movie).
What Netflix hopes is that the $6 price rise to $15.98/month for both the DVD and streaming service, will steer customers to the $7.99 streaming only plan. Additionally, this would be in line with it international expansion into Canada and Latin America where only a streaming service is offered.
Best and Happy Moving Going
Jim Lavorato
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