Netflix CEO Reed Hastings encouraged the major studios to make their movies available on both HD DVD and Blu-ray to make consumers feel comfortable buying into high-definition DVD



“Protracted competition will hurt the adoption of high-definition DVD,” Hastings warned during the company’s first-quarter earnings conference call Monday. Businessman and Internet Visionary Reed Hastings of California, the founder of Netflix, served as a Peace Corps Volunteer in Swaziland.

Netflix CEO Reed Hastings encouraged the major studios to make their movies available on both HD DVD and Blu-ray to make consumers feel comfortable buying into high-definition DVD

Hastings urges end to high-def war
UPDATE: Netflix plans public offering of 3.5 million shares
By Jennifer Netherby 4/27/2006

APRIL 27 | Netflix CEO Reed Hastings encouraged the major studios to make their movies available on both HD DVD and Blu-ray to make consumers feel comfortable buying into high-definition DVD and speed up an end to the potential format war.

“Protracted competition will hurt the adoption of high-definition DVD,” Hastings warned during the company’s first-quarter earnings conference call Monday.

Hastings’ urging comes as Netflix continues its sharp growth curve. Boosted by record subscriber growth, Netflix reported earnings of $4.4 million for the quarter ended March 31, up from a loss of $8.8 million the previous year.

The company had record revenue of $224.1 million, up 47%.

Netflix said Thursday it plans to file with the Securities and Exhange Commission for a public offering of 3.5 million shares that it expects to close in May.

Netflix added a record 700,000 net subscribers during the first quarter, bringing total subscribers to 4.86 million. Netflix now expects to close the year with 6.3 million subscribers.

In regard to the next generation introductions, Hastings called on studios to follow the lead of Warner Home Video and Paramount Home Entertainment, which plan to release their movies on both formats, saying it’s a “practical solution” to a format war.

“If all studios were to embrace both formats agnostically, consumers would be more comfortable making a format decision based on hardware pricing and features,” Hastings said.

Hastings predicted a slowdown in disc sales this year as consumers stop buying standard DVDs before they switch to high-def in the coming years. He pointed to videogame sales, which drop just before new game formats are launched. However, he said the blip wouldn’t likely have an affect on the rental market.

Netflix is continuing to focus on growing its subscriber base as it builds on its lead over rival Blockbuster, which Netflix sued for patent infringement earlier this month (VB, 4-4.)

Based on the healthy first-quarter subscriber growth, Netflix upped its revenue expectations for the year to $990 million, lifted from previous guidance of $960 million.

Chief financial officer Barry McCarthy said the company will keep to its earlier earnings forecast of between $29.4 million and $35.4 million and will instead channel any surplus into marketing to continue to drive subscriber growth.

Netflix increased its marketing spend to $52 million during the first quarter in its bid for new subs, up from $36 million spent in first-quarter 2005. Still, the company was able to hold its subscriber acquisition costs relatively steady at $38.47 per subscriber this first quarter vs. $38.68 the previous year.

Hastings said the company would give a time frame for its digital download plans by the end of the year as it readies that service.

Meanwhile, Netflix has continued to test lower prices of its services but hasn’t come to any decisions on new pricing plans, McCarthy said. The company has tested prices as low as $4.99 for one rental a month.

Hastings seemed to hint that the company also could change pricing for high-def disc rentals, saying “high-definition access is free to Netflix subscribers for now.”

The company announced its results after the market closed. Netflix’s stock was up nearly 5% at $32.80 in after hours trading.

When this story was posted in July 2006, this was on the front page of PCOL:




Peace Corps Online The Independent News Forum serving Returned Peace Corps Volunteers

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Jody Olsen is acting Peace Corps Director The Senate confirmed Gaddi Vasquez to head the FAO on June 30. Jody Olsen will be acting Director until the President makes a permanent appointment. Olsen has been Deputy Director of the Peace Corps since 2002. She has previously served as Chief of Staff for two directors, as regional director for North Africa, Near East, and Asia and the Pacific, and as country director in Togo. She served in Tunisia as a PCV.

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The Peace Corps Library The Peace Corps Library is now available online with over 40,000 index entries in 500 categories. Looking for a Returned Volunteer? Check our RPCV Directory. New: Sign up to receive PCOL Magazine, our free Monthly Magazine by email. Like to keep up with Peace Corps news as it happens? Sign up to recieve a daily summary of Peace Corps stories from around the world.

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Changing the Face of Hunger In his new book, Former Congressman Tony Hall (RPCV Thailand) says humanitarian aid is the most potent weapon the United States can deploy against terrorism. An evangelical Christian, he is a big believer in faith-based organizations in the fight against hunger. Members of Congress have recently recommended that Hall be appointed special envoy to Sudan to focus on ending the genocide in Darfur.

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Chris Dodd considers run for the White House Senator Chris Dodd plans to spend the next six to eight months raising money and reaching out to Democrats around the country to gauge his viability as a candidate. Just how far Dodd can go depends largely on his ability to reach Democrats looking for an alternative to Hillary Clinton. PCOL Comment: Dodd served as a Volunteer in the Dominican Republic and has been one of the strongest supporters of the Peace Corps in Congress.

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The RPCV who wrote about Ben Hogan Probably no RPCV has done more to further the Third Goal of the Peace Corps than John Coyne with the Peace Corps Writers web site and newsletter that he and Marian Haley Beil have produced since 1989. Now John returns to writing about his first love - golf in "The Caddie who knew Ben Hogan." Read an excerpt from his novel, an interview with the author and a schedule of his book readings in Maryland and DC this week.

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Vasquez testifies before Senate Committee Director Vasquez testifies before the Senate Foreign Relations Committee on his nomination as the new Representative to the United Nations Agencies for Food and Agriculture replacing Tony Hall. He has been the third longest serving Peace Corps Director after Loret Ruppe Miller and Sargent Shriver. PCOL Comment: Read our thanks to Director Vasquez for his service to the Peace Corps.

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First Amendment Watch Maine Web Report hit with Federal Lawsuit Website wins trademark suit against Jerry Falwell

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PCOL readership increases 100% Monthly readership on "Peace Corps Online" has increased in the past twelve months to 350,000 visitors - over eleven thousand every day - a 100% increase since this time last year. Thanks again, RPCVs and Friends of the Peace Corps, for making PCOL your source of information for the Peace Corps community. And thanks for supporting the Peace Corps Library and History of the Peace Corps. Stay tuned, the best is yet to come.

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History of the Peace Corps PCOL is proud to announce that Phase One of the "History of the Peace Corps" is now available online. This installment includes over 5,000 pages of primary source documents from the archives of the Peace Corps including every issue of "Peace Corps News," "Peace Corps Times," "Peace Corps Volunteer," "Action Update," and every annual report of the Peace Corps to Congress since 1961. "Ask Not" is an ongoing project. Read how you can help.

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