July 9-10, 2013
San Francisco, CA

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After watching House of Cards, you’d think that the real Washington, D.C., would want to distance itself from the nefarious plotting of Kevin Spacey’s Frank Underwood. But you’d be wrong.

The Netflix series played a big role at the White House Correspondents’ Dinner last night with the spoof “House of Nerds,” in which Spacey’s Underwood character takes on actual politicians and political journalists. The list of cameos includes Sen. John McCain (R-Ariz.), White House Press Secretary Jay Carney, and New York City Mayor Michael Bloomberg.

While the title is somewhat misleading (are politicos really nerds?), the spoof works thanks to some excellent writing that isn’t afraid to poke fun at political controversy.

Case in point, Underwood’s comments to Bloomberg, “You can’t run for mayor again, Mike. That’ll put Anthony Wiener in a pickle, and he’ll tweet that pickle.” Underwood suggests that Bloomberg consider running for the president of the correspondent’s association, but Bloomberg points out that’s only a one-year position. “Since when have term limits stopped you?” quipped Underwood.

In addition to being hilarious, the spoof shows Netflix’s increasingly prominent position in the media landscape. Netflix content head Ted Sarandos is even called out in the spoof by Rep. Steny Hoyer (D-Mary.). “You have to introduce me to Ted Sarandos at dinner, I can’t get my f—– Netflix to work!,” Hoyer demanded in a phone call with Underwood.

It’s significant that Hoyer didn’t ask for Netflix CEO Reed Hastings. When it comes to Netflix’s future — and perhaps the future of media itself — its Sarandos and his push towards high-quality original content that will have the most impact over the next few years.

July 9-10, 2013
San Francisco, CA

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Netflix’s newest original series, Hemlock Grove, debuted this past weekend, and it looks like members are biting, with more people watching the new supernatural show on opening weekend than its recent hit, the political drama House of Cards.

Hemlock Grove is the latest original series from Netflix; horror director Eli Roth developed it. This show, along with House of Cards, clearly shows the company’s desire to be a media player similar to HBO and Showtime.

It appears that Netflix’s original content strategy is paying off, with more than 3 million new subscribers signing up last quarter. That brings Netflix’s total membership to more than 36 million members.

The company writes in its quarterly earnings statement today:

On April 19, we launched all 13 episodes of Hemlock Grove, a horror thriller from Eli Roth, and we’re very pleased with its early performance. Hemlock Grove was viewed by more members globally in its first weekend than was House of Cards and has been a particular hit among young adults.

Now, to be fair to House of Cards, that series debuted on Super Bowl weekend. That means Sunday viewership likely dropped off substantially. Hemlock Grove had no such event drawing attention away from viewers.

Netflix’s next original content offering is a new season of the cult comedy TV show Arrested Development. All 15 episodes of that series will be available on May 26. Sadly, that will be the only season of the show produced by Netflix.

July 9-10, 2013
San Francisco, CA

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Netflix will only produce one new season of the cult comedy TV series Arrested Development, the popular streaming video service admitted today.

Arrested Development is one of a handful of high-profile projects Netflix is producing so it can provide its members with exclusive high-quality content. Its original series House of Cards has David Fincher and Kevin Spacey behind it and is the most watched piece of content on the service right now. House of Cards shows people using Netflix will happily lap up new content if it is good. (The series boasts an impressive 9.0 out 10 on IMBb now.)

Other big exclusive TV shows Netflix has committed to make include Eli Roth’s Hemlock Grove, Jenji Kohan’s Orange is the New Black, and the new Dreamworks kids show Turbo: F.A.S.T. But Arrested Development is clearly in a different boat because it is a resurrection of a series that was prematurely canceled — not a new series.

Netflix told the Wall Street Journal today that it would be “extremely difficult to get the cast together.” Netflix called the new season of Arrested Development a “one-off” and “non-repeatable” event. Basically, it appears Netflix doesn’t appear to have the cash to make another season worthwhile.

While it’s hard not to be blue (like Tobias), fans are likely still excited to get one more season from the show, which become more popular after it stopped airing in 2006. Netflix has committed to make 14 new episodes of the show, and they are planned to debut in May.

Netflix faces steep competition from Amazon Prime Instant Video, Hulu, and other services that also have planned their own original video content. But at least right now, Netflix has done a great job bringing creators to the fold that connect with its viewers. Will the other services be able to say the same?

Check out some of the best clips from Arrested Development below.

In the past few weeks we’ve been under a data deluge. There have been data-fueled debates over the performance of Tesla cars and who will win the Oscars. Esteemed journalists have pointed out what “data can’t do.”

This drives home a point: Data is a hugely important theme making its influence felt all around us, regardless of whether or not it’s overhyped.

It is also clear that while we still haven’t perfected how to use data to “change everything” for the better, we’ll work toward that. We are merely in the Pleistocene era of data, much as we’re in the very early stages of our overall technological development. Who doesn’t anticipate our future holds vast improvements in wireless communication, transportation and personal computing technologies?

John De Goes makes really solid arguments about changing our perspective on the “big data” industry and meme. I think we should view data as being a part of most everything. After all, we don’t think of “technology” as a discrete concept. There are few facets of contemporary life that are not driven, augmented or produced by technology.

Making the most of the data you know

Data itself is not the be-all and end-all (as David Brooks has said). There are so many x-factors in our world that data cannot account for right now: ideas like context, and variables such as human whim and emotion.

Interestingly, the human factor also makes data work for us. We are quite adept at making the best of what’s available to us in a specific time or era. Think of earlier milestones in human advancement, the furthest extent these developments were taken to and the maximum benefit or consequence achieved. The atom bomb was developed and it helped end a war (we can save the political and moral discussion for another day). Computers were invented and moved from room-sized to pocket-sized. Think about how many facets of our lives have been impacted by these developments.

In this and every era, we will make the most of the data we have. It won’t fix everything, but there’s little it won’t impact. As technology advances, so too will the pervasiveness of data in everything, everywhere.

What’s obvious right now is that data has entered mainstream life, and just look at a few reasons why everyone needs to care:

Data is driving business decision-making

The much-discussed Netflix show House of Cards was essentially a product of data. The show and its unique distribution model have been bandied about as heralding a new type of entertainment production. Netflix’s entire business — not just this program — is built on and focused around data insights and usage. It looks like our entertainment future will likely be very data-driven.

But forget the Kevin Spacey character’s thirst for power, and think of a more “romantic” human desire: the search for love or partnership. Online dating companies say that a growing percentage of us are meeting a future spouse digitally. This means a lot of data is shaping a lot of human interaction, and possibly altering the make up of future society.

As Matt Asay has said, “According to IDC, Big Data is set to explode to $23.8 billion in 2016, fueled by our need to be more data-driven in everything from how we do business to how we eat.”

Data makes you buy

As digital ad spending outstrips print and is poised to be the big dog in marketing, data grows right along with it. Down the road, nearly all forms of marketing will be digitized in some way — addressable and targetable. This will create an even deeper trough of data for marketers, brands, agencies and media companies to mine for insights.

Those who prevail will be able to sift through the biggest pile of sand and extract the gold nuggets. We’re seeing more marketers rely on technological solutions that help them take control of the vast trove of data available. This is critical because it allows marketers to focus on the creativity and strategy of marketing, while technology companies provide them with the tools and information that enable them to do so.

Jonathan Gardner is director of communications at Turn, the cloud marketing platform. He has spent his career as an innovator at the nexus of media and technology, having worked in communications and as a journalist.

Photo: Leonardo Rizzi via photopin

July 9-10, 2013
San Francisco, CA

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It seems that the Super Bowl weekend debut of Netflix original series House of Cards didn’t take away from subscriber curiosity. The show currently the most-watched program on the streaming video service, according to Netflix chief content officer Ted Sarandos.

Sarandos, who spoke on stage at the D: Dive into Media conference today, didn’t share any specific audience numbers, saying that Netflix isn’t beholden to advertisers and really doesn’t have any need to disclose that kind of information. However, knowing House of Cards (which is produced by Media Rights Capital) is at the top of the pile is still pretty significant when you consider the thousands of movies and TV shows available to domestic Netflix subscribers — and the fact that Netflix subscribers collectively watch over a billion hours per month on the service.

“I don’t want to give ratings, because it is a real apples-to-oranges comparison with network ratings,” Sarandos said.

As people talk about the series over the next few month, Sarandos said he expects House of Cards to grow its audience over time.

There was also talk of Netflix’s next big original series debut, with resurrected sitcom Arrested Development. Along with Sarandos, Arrested Development creator Mitch Hurwitz spoke highly of the new season, saying: “In many ways, we are the poster child for Netflix…” and that the streaming service is ideal because it affords them a dedicated audience that pays closer attention to its brand of humor.

And since Arrested Development already has a built-in fan base, it wouldn’t be a huge surprise to hear that it becomes the most watched show during the month of May, which is when it’s scheduled to premiere on the streaming service.

Via The Verge

July 9-10, 2013
San Francisco, CA

Tickets On Sale Now

At first glance, it may seem odd that Netflix chose to premiere its first huge original show House of Cards today, leading into Super Bowl weekend.

Not only is the Super Bowl championship game one of the most watched live events in the entire world, but it also gobbles up attention for most of the day with pre- and post-game analysis programming. Most of the major networks treat Super Bowl Sunday as if it were a holiday, delaying new episodes of their scripted and broadcast shows to avoid an audience ratings decline.

But clearly Netflix isn’t scared the big game will prevent people from watching House of Cards. And that’s despite reports from Sandvine showing a 40 percent drop in Netflix streaming usage compared to an average Sunday evening/night during last year’s Super Bowl. Part of its lack of fear might have to do with all the other TV networks playing reruns or deferring regular content until next week — meaning House of Cards might be the only great piece of TV worth watching on Sunday for those not watching the game.

Related stories:
Punt your TV: The Super Bowl is better online (guide)
Ahead of House of Cards premiere, Netflix asks investors to fund new original content

House of Cards has been getting glowing reviews from critics as well as tons of positive comments from Netflix subscribers via social media today. The show, which comes from the minds of director David Fincher and actor/producer Kevin Spacey, is a Washington D.C. political drama about corrupt congressman Francis Underwood (Spacey), who will stop at nothing to become President of the United States.

Netflix, which has promoted the show’s trailer on its streaming service for weeks, is releasing the full 13-episode season today. That’s a sharp difference in strategy from the cable networks, which make their audience wait 13 weeks to finish a story, one hour at a time.

And if the allure of a hot new show isn’t enough to bait people into checking out the new show between now and Sunday, the company is streaming the first episode for free on its website. Also, Netflix has partnered up with Microsoft to provide free access to its app on Xbox Live all weekend long (meaning access to all the episodes, son!). This is interesting because the “free weekend” is a promotional tactic commonly used by premium cable channels like HBO and Showtime to gain new customers.

It’s likely that Netflix subscribers (and those participating in the Xbox Live free weekend) won’t have time to finish the entire 13-episode run between now and Super Bowl kickoff. But, if House of Cards lives up to the buzz from critics (and it should), Netflix may end up seeing a nice usage boost beginning Monday — and a crop of new subscribers.

Theoretically, any boost in subscribers that can be attributed to House of Cards should play well with investors — especially since the company isn’t expecting the show’s debut to have an immediate impact on growth, Netflix chief exec Reed Hastings told analysts during last week’s Q4 earnings call.

We’ve reached out to Netflix for comment about the Super Bowl’s impact on streaming usage. And as always, we’ll updated this post with any new information when and if we hear back.

Will you be watching House of Cards this weekend? Let us know in the comments.

July 9-10, 2013
San Francisco, CA

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Netflix CEO Reed Hastings has a track record for making bold decisions about his company based on the prediction of a successful outcome.

So, Netflix’s decision to ask investors to pony up more money for (among other things) new original content –  days before the release of its first big series premiere, House of Cards — definitely qualifies as one of those decisions. (I say this because there’s a possibility that people won’t like the show. Sure, early reviewers had glowing things to say about it, but they don’t always speak for the general viewing audience.)

In a letter to investors today, Hastings asked investors to finance $400 million (PDF), which the company intends to use for refinance existing notes ($225 million) and other “general corporate purposes.” But, AllThingsD‘s Peter Kafka points out that the vague-ish “purposes” for the remaining amount will go toward producing new original content, according to statements Hastings made in the Q4 2012 letter to shareholders last week.

Hastings also told shareholders during the Q4 earnings call that the company doesn’t expect to see a huge boost in subscribers attributed to House of Cards or any of its other premieres. Basically, even if the show isn’t a big hit, it shouldn’t affect its strategy for future growth. That’s also true for Netflix’s other original shows, including Arrested Development, Eli Roth’s Hemlock Grove, Jenji Kohan’s Orange is the New Black, and Ricky Gervais’ Derek.

And unlike other television shows, Netflix content isn’t beholden to audience ratings, which TV networks use to determine the programming that gets more seasons or canceled. I suspect the only way we’ll really know if one of Netflix’s original shows isn’t a hit is if the company doesn’t ask for a new season.

Netflix’s confidence comes a week after the company’s Q4 earnings exceeded expectations and pushed its stock price up significantly. Even after asking for the new investment, Netflix’s stock closed at 169.12 for the day.

July 9-10, 2013
San Francisco, CA

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Netflix released a teaser trailer for its upcoming original TV show House of Cards today, which features director David Fincher and actor Kevin Spacey.

Netflix won an expensive bidding war with other premium cable channels (HBO, Showtime) to gain the rights to air the show over its streaming video service last year. And unlike those cable channels, the company plans to release all 13 episodes February 1, 2013.

Judging from the trailer alone, it seems like Netflix may have its first truly HBO-quality hit. At any rate, House of Cards will certainly be better than Lilyhammer, the company’s first attempt at original programing. Netflix is also scheduled to debut other original shows in 2013, including the resurrected Arrested Development.

For Netflix, a lot is riding on the success of this show. Not only is the company spending a ton of money on producing original programming, but it’s also pursuing an aggressive international expansion. Both of these actions use profits from Netflix’s domestic subscription business, which didn’t report much of a profit in the latest quarterly earnings report. That caused Netflix’s stock price to drop. If that wasn’t enough, billionaire financier Carl Icahn grabbed a 10-percent stake in the company with the intent of selling Netflix off to a larger company.

If House of Cards is wildly popular (and increases domestic subscriptions), it could provide some proof to shareholders that Netflix’s current business strategy is indeed working.

We’ve embedded the trailer video below. Let us know what you think of it in the comment section.

July 9-10, 2013
San Francisco, CA

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Netflix’s next big original series, “House of Cards” from director David Fincher and actor Kevin Spacey, will debut on Feb. 1, 2013, the company announced today.

Like the other original content Netflix is creating to help it maintain customers in its growing war with HBO and cable companies, “House of Cards” has high-profile names attached. Other shows being produced in part by Netflix include Eli Roth’s “Hemlock Grove,” Steve Van Zant’s “Lilyhammer,” and Jenji Kohan’s “Orange is the New Black.” And of course, we can’t forget about Netflix resurrecting Arrested Development.

“House of Cards,” which is an adaptation of a BBC drama by the same name, follows the narrative of a powerful politician (Spacey) working his way up in Washington. In a move sure to please TV watchers who can’t wait to see what happens next, Netflix will make all 13 episodes of the show’s first season available immediately.

The show description and the talent behind the camera make it sound compelling:

The Netflix original series, from Media Rights Capital, “House of Cards,” starring Academy Award® winner Kevin Spacey (“Horrible Bosses,” “American Beauty”), Golden Globe® nominee Robin Wright (“The Girl with the Dragon Tattoo,” “Forrest Gump”) and Kate Mara (“American Horror Story”) will be available for members to watch instantly beginning February 1, 2013.

All 13-episodes of the drama series’ first season will be available to Netflix members in territories where Netflix is available — North America, the UK, Ireland, Latin America and Scandinavia.

An uncompromising exploration of power, ambition and the American way, the series orbits Francis Underwood (Spacey), the House Majority Whip. Underwood is the politician’s politician – masterful, beguiling, charismatic and ruthless. He and his equally ambitious wife Claire (Wright) stop at nothing to ensure their ascendancy. In addition to Spacey, Wright and Mara, the series also stars Corey Stoll (“Midnight in Paris”), Kristen Connolly (“The Cabin in the Woods”), Michael Kelly (“The Adjustment Bureau”) and Sakina Jaffrey (“Definitely Maybe”).

Fincher directed the first two episodes of the series, which were written by Willimon. James Foley (“Glengarry Glen Ross”), Joel Schumacher (“Falling Down”), Charles McDougall (“The Good Wife”), Carl Franklin (“Devil in a Blue Dress”) and Alan Coulter (“The Sopranos”) also serve as directors on “House of Cards.”

Will you watch “House of Cards”?

Kevin Spacey photo: Rena Schild / Shutterstock.com

July 9-10, 2013
San Francisco, CA

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There has been a lot of excitement about Netflix’s decision to air the original Kevin Spacey-starring television series House of Cards, but today co-founder and chief executive Reed Hastings sounded cautious about the company’s future production plans.

Hastings, who was speaking at the D9 conference in Rancho Palos Verdes, Calif., acknowledged that TV shows are an important part of Netflix’s library. Ideally, those shows would be produced by traditional studios, then Netflix would make deals to stream them after they’ve aired — not right after they’ve aired, but Hastings would like to have all of a show’s previous seasons. However, Netflix hasn’t succeeded in obtaining the rights to all the shows he would like, so he said the company has to pursue other content strategies.

“If we can’t spend the money with HBO and Showtime, then we’ve got to do things like that,” Hastings said.

Even in the case of House of Cards, Netflix isn’t actually producing the show, he added. The show is being produced by Media Rights Capital, and Netflix is providing some of the financing in exchange for the exclusive rights to air the show first. The company might pursue more deals like this in the future, Hastings said, but when journalist Kara Swisher asked if Netflix will start making movies, he replied, “I don’t think we have a differential competence in making movies per se.”

So why aren’t HBO shows available on the Netflix’s Watch Instantly streaming service? It sounds like that’s a priority for Hastings, who said that if he could bring any one show to Instant, it would be The Wire. HBO may be protecting its own content strategy (namely the fact that it makes old episodes available through its HBO Go), but Hastings said there’s a simpler explanation: Netflix hasn’t offered to pay enough yet.

Speaking of original content, people have wondered whether Netflix might revive canceled programs like the beloved science fiction show Firefly. Hastings has said in the past that that kind of move is a possibility. When Swisher asked about Firefly specifically, it didn’t sound like the show would come back on Netflix — Hastings said that the actors have all aged and all the sets have been dismantled.

Under the deal, Netflix will run the “House of Cards” political drama being directed by Oscar-nominated director David Fincher as an exclusive on its streaming video service late next year. This kind of deal could turn Netflix into a premiere network much like Time Warner’s HBO or CBS’s Showtime, if Netflix continues to accumulate more programming. And that could shift the balance of power from Hollywood studios to Netflix, which was previously just one more digital distribution channel.

Netflix is gaining power because it has more than 20 million subscribers for its movie service, an audience that is closing in on the 28 million subscribers that HBO has on cable TV. Netflix is thus in a position to disrupt traditional movie and TV service providers as it consolidates power on the internet.

Ted Sarandos, chief content officer at Netflix, told the Wall Street Journal that Netflix will pay a portion of production costs for the series, with Media Rights Capital (the independent studio creating the project) financing the rest. Sarandos declined to say how much Netflix is paying for the exclusive online rights. But Netflix’s fee for production costs is capped if the show goes over budget.

House of Cards is based on a book and BBC miniseries of the same name. Sarandos said that Netflix will take advantage of the web by airing as many as four episodes at the same time so that users can immerse themselves in the content. He said, “There is no reason for us to be tied to traditional business models.”

The Wall Street Journal noted that Netflix’s move into original programs is similar to the dawn of cable TV in the 1980s, when most networks had little original content. They started creating more original programs to run exclusively on their networks to differentiate themselves. That’s how HBO, Starz, Showtime and others were born. But the model brings risks for Netflix, which doesn’t have experience producing high-quality content or picking the right shows.

Netflix’s move comes after the pay-TV networks brushed it off. HBO decided not to sell Netflix any streaming rights, and Showtime waits a couple of seasons before licensing episodes. Such strategies would have doomed Netflix to distributing old content. In response to the growing power of Netflix, I suspect that the studios and pay-TV networks will try to find digital distribution alternatives to Netflix. That could be good for emerging alternatives such as OnLive, which plans to offer movie streaming services as well.

Netflix is committed to 26 episodes.

In other news, Netflix has been hit with five lawsuits in the past two months accusing it of violating user privacy rights. The lawsuit alleges that Netflix held on to customer data such as rental habits and credit card numbers long after people had canceled their memberships.

[picture credit: hawtmag]