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Sony Takes Low Road, Blocks Movies for 360's Netflix PDF Print E-mail
Written by Arya Ponto   
Tuesday, 18 November 2008

XBox 360 users are getting a much anticipated update to the dashboard tomorrow morning at 5 AM Eastern Time. A good number of these owners are new or returning Netflix subscribers who are excited for the update because it would allow their 360 to stream movies from Netflix, but it looks like they're going to have to settle for a crippled service for the time being.

The feature is incompatible with hundreds of movie titles; movies that are available to watch instantly on the Netflix website, but not through an XBox 360. Movies that just so happen to be Columbia Pictures movies. Columbia, as in the company owned by Sony. Sony as in the makers of 360 rival PlayStation 3.

The affected movies range from Superbad to Air Force One.

Netflix PR guy Steve Swasey commented on the situation on the official Netflix blog tonight, saying:

As watching instantly becomes a more prominent part of the Netflix service, our goal is to have all of our streaming content licensed for all of our partner devices. We’re doing well in this area, but it will take some time before we fully achieve that goal. Today, titles regularly come in and out of license and there is a natural ebb and flow to what we have on license at any given point in time. In the case of Xbox 360, a few hundred titles are temporarily unavailable to be streamed via the Xbox game console. Those titles are still available to be watched on subscribers’ computers and on TVs via other partner devices, and we hope they’ll be licensed for Xbox 360 shortly.

In other words, Sony is being a toddler and making it difficult for Netflix to get the license to their movies, but only to their nemesis, the XBox 360. Roku player, Samsung and LG Blu-ray players? They're fine. It's that pesky 360 thing taking their PS3 money they're bitter about.

Someone needs to tell them that Microsoft computers are regularly used to watch their movies on the Netflix site.

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November 19, 2008, Mornelithe said:

0
 It's the same low road that MS has been taking with paying for exclusive DLC. Sony owns the studio, I don't see Gears of War on the PS3. Deal with it.

Morne
 

Votes: -7

November 19, 2008, Steph said:

0
 Would that be the same low road you would take...if you were asked to spend your resources and time to train someone knowing that they were going to take your position from you and your source of income? I dont think you would be too happy about that either. It's easy for you to take the "high" road with this little article b/c you have nothing at stake. Get off your "high" horse man.
 

Votes: -5

November 19, 2008, Alex said:

0
 I disagree with all of the above statements...sony is blocking their movies because they are touting their blu-ray discs...if sony were to liscence their IP's to the 360 they would be cutting into their own business. Not only that but microsoft paid for the exclusive rights to this service so...is sony necessarily out of line by denying the 360 access to their movies...probably not. I own a 360 and find this irritating as well, but to place the blame on sony alone is missing the big picture.
 

Votes: +3

November 19, 2008, Serg said:

0
 It is all about the Benjamin’s people =o). it’s a matter of time were Sony has to give it up. I’m sure its against the law to deny MS request, however they can delay it. Sony is sinking real low now…
 

Votes: +0

November 19, 2008, Lex Walker said:

72
 Hmm, I think you'll find Sony is well within their rights to refuse licensing to anyone they wish. Just as the owner of a diner can refuse service, Sony is protected seven ways from Sunday in terms of their copyrighted material. However, what Sony will eventually do, is cave. Not because of legal ambitions - but rather because it makes good business sense to have their properties as widely available as possible. While I normally defend Sony tooth and nail, I do think this is slightly underhanded, but considering it's most likely not a permanent move but rather one to shore up losses as they secure their own means or imitation of Netflix. As is the case with Sony's licensing denial, Netflix's deal of exclusivity to Microsoft isn't really in Netflix's best interest. Which is why I'd bet the deal they signed is on a timelock - meaning that in a few months or a year the exclusivity clause will end allowing Netflix to begin it's streaming deal with PS3 owners. If that's the case Sony might hold off licensing until then - an interesting quid pro quo if ever there was one.
 

Votes: +3

November 19, 2008, Matt said:

0
 I agree. I think it's more about the exclusive MS-Netflix deal. If Netflix had included a PS3 version of their service, Sony might have let it slide. What bothers me is the snarky closing line of the article: "Microsoft computers are regularly used to watch their movies on the Netflix site." Has Microsoft started manufacturing computers?
 

Votes: +1

November 19, 2008, Lex Walker said:

72
 Thinking further on the subject I now remember that the Netflix Instant Viewing feature demonstrates a precursor of what we're seeing now - the Instant Viewing option requires Microsoft Internet Explorer. Or at the very least an IE plug-in for Firefox and similar second-string browsers. While I normally don't gripe against Netflix on this matter because of these available plug-ins, I do think it's important to remember that Sony will be the second competitor Microsoft has struck with its Netflix partnership - the first being Mac, whose computers are incapable of taking advantage of the Instant Viewing function.

Now, I use a PC. I use a Microsoft OS (Vista...so help me God, I want to kill it at times). I downright loathe Macs for their dumbed down nature and capability. But the point here is this: Microsoft and Netflix alike are burning an awful lot of bridges very early in the Digital Media game. While iTunes may have pioneered new media markets, it didn't lock out its competitors (even if it has left them all effectively in the dust). Netflix and Microsoft need to rethink this whole ordeal or they might find other companies besides Sony getting snarky in return.
 

Votes: +1

November 19, 2008, Marcus Beasley said:

74
 Can we please try doing more research before we stoop to some petty fanboy nonsense. This is Netflix's fault not Sony's.

"There's a lot being written about the disappearance of Sony films from Xbox's Netflix streaming service, and most of it is wrong.

Several blogs have suggested that Sony pulled movies from Columbia Pictures, owned by Sony, because it has a problem with Microsoft or the Xbox. That isn't the case. It turns out that Netflix simply didn't get a licensing deal done with Sony that included the Xbox or some of Netflix's other distribution partners, according to sources close to the situation. This is a bad goof on Netflix's part.

Steve Swasey, Netflix's spokesman, refused to discuss any specific studio licensing deals but did say that titles "come in and out of licensing all the time." He acknowledged that some movies once offered as part of the Netflix-streaming service on Xbox aren't there anymore. He said the company hopes it's only temporary.

Netflix has done a great job of moving streaming movies from the Internet to TV sets with the Netflix Player from Roku and by partnering to offer its streaming service via Xbox.

But one of the main complaints I have with the streaming service is that it's still light on titles. If Netflix loses those they already have they're frustrating customers and hurting themselves. This is the kind of basic blocking and tackling the Netflix guys are typically so good at.

(Note to Netflix CEO Reed Hastings: don't flub this kind of thing. I'm sure you're aware some of the studios were lukewarm about Xbox offering Netflix and would have preferred to see Microsoft build it's own film offering). "
Was originally posted here:
http://att.com.com/8301-1023_3-10102728-93.html
 

Votes: +1

November 25, 2008, Matty said:

0
 Good news!

As of tonight at 10pm, I saw Jerry Maguire on my Netflix queue on the 360, along with all the other Columbia/TriStar films I have there. So it looks like: a) it WAS a simple licensing issue and that b) its now resolved.

There are a couple of Sony films I still can't access (Vacancy for one, but that is directed by someone named (no misprint) Nimrod so I can honestly wait for that one).

Happy Thanksgiving to all who celebrate. smilies/grin.gif
 

Votes: +0

November 25, 2008, Josh Coffey said:

191
 Haha! Nimrod?!
 

Votes: +0

November 30, 2008, Ali said:

0
 Reading the article and comments, it is very probable the author Arya Ponto is a disgruntled 360 owner who is ill-struck with the 360 not getting Sony movies in his Netflix feed. To the author's dismay, everybody's comments seem to disagree and there is a common knowledge: That licensing is licensing, and what Sony has done is perfectly in their right. We can thank God that in free markets, business rights, freedoms, and practices prevail, even when they are to the detriment of an over-rated multi-billion dollar lobbying machine like Microsoft. A company who's product-of-the-decade (Vista) was quite possibly the biggest blunder, and consumer rip-off that the digital age may ever see. Free markets award competence, and Sony (creator of the Compact Disk, the cassette, the Walkman, and countless other universal formats has demonstrated competence for over 40 years. Microsoft on the other hand "HAS EXPERIENCED A RUNTIME ERROR# 32KERNEL AND NEEDS TO RESTART" smilies/wink.gif
 

Votes: +1

November 30, 2008, Arya Ponto said:

77
 Ah, but you are mistaken. I don't play games much at all, so I don't subscribe to XBox Live Gold, therefore I don't even use the 360's Netflix service. I have my Mac connected to my HDTV and I've been watching Netflix that way, so no disgruntlement on my part.

Hey, all is fixed now, I heard. So cool.
 

Votes: +0

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