Netflix and Chips

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Netflix and Chips
Number 92
Broadcast Date October 19, 2015
Episode Length 1:06:47
Hosts Brian Brushwood, Tom Merritt
Guests Eklund

Netflix blames chip cards for subscriber decline, China’s Xiaomi revolutionizes set-top box, why fantasy sports gambling could fund the cord-cutting sports future.


Intro Video

Primary Target

Signals Intelligence

US Subs rose 880K to 43.18 million short of expected 1.15 mm
Int’l increased 2.74 mm to 25.99 mm better than 2.5 mm expected
US growth no. attributed in part to “involuntary chrun” blamed on new credit cards
"It's just the dumbest thing I've heard," Wedbush Securities analyst Michael Pachter said.
Still thinks it can 1.65 million customers in Q4/ 3.5 mm worldwide
Netflix original programming budget estimated to grow to $5 billion next year
Ted Sarandos said likelihood “probably high” to compete in news and info documentaries like Vice (NOT looking at sports)
Star Wars Episode VII will not be a part of its agreement with Disney, which kicks in during Q4 next year.

Gear Up

Xiaomi 60-inch 4K MITV 3 - RMB 4,999 (roughly $786).
Mi TV Bar with speakers
2GB RAM, 8GB flash storage
Runs Xiaomi’s Android variant MIUI TV
Can buy MiTV bar separately and use with any TV (RMB 999 ($157))
China only

Front Lines

ReCode has sources who say YouTube will announce some original programming at an event Wednesday at YouTubeSpace LA where Tom’s wife works. The sources say say the content will be available as part of a subscription program that also removes ads. this is DIFFERENT than YouTube Gaming’s ‘sponsorships’ that they just launched which lets you support gamers for $3.99 a month and get access to exclusive chat perks but does NOT remove ads.
But where does that YouTube money go? Sure some is used to pay the salary of Tom’s wife. But Forbes ranks the YouTube stars that earned the most money for the year ending June. 1. Pewdiepie earned $12 million.Gamer KSI made $4.5 million. Smosh and the Fine Brothers made $8.5 million each. Musician Lyndsey Sterling took in $6 million and Fashion vlogger Michelle Phan earned $3 million. The amounts are for all income not just YouTube revenue.
NBC Universal announced a video service called SeeSo last week in the US. For $3.99 a month you can watch Old US and British comedies, episodes of NBC’s late night shows, current episodes of NBC comedies and more than 20 original series. One of the originals is HarmonQuest combining live action and animation. 10-15% of the content will be available for free. It launches in beta in December and in full in January. You can sign up to be notified at
Let the game of whack-a-mole begin. The BBC told TorrentFreak it is beginning to actively block IP addresses from known VPN services in order to combat out of country viewing by non subjects of the realme. While the BBC says it is not blocking VPNs of school and corporate users, it will block the legitimate home user who happens to use the wrong VPN for security.
Comcast has begun enforcing its long unenforced 300 GB cap that still exists in a few of its markets mostly in the central and southern states of the US. People who hit the cap will be offered the choice to pay $10 a month to get 50 additional GB or $30 for unlimited data use. For reference a 75Mbps plan in Florida costs $80 a month with a 300 GB cap. A Triple play bundle including TV and phone costs $99 a month.
By the time you hear this you likely will have already seen the new Star Wars: The Force Awakens trailer that aired during Monday Night Football on ESPN. Tickets are schedule to go on sale as soon as the trailer airs.

Under Surveillance

A new teaser came out for Netflix’s “A Very Murray Christmas” a Christmas Variety show hosted by Bill Murray, featuring Miley Cyrus, George Clooney, Michael Cera, Amy Poehler, Paul Shaffer, Jason Schwartzman, Miley Cyrus, Chris Rock, Maya Rudolph, David Johansen, Dimitri Dimitrov, Julie White, Jenny Lewis, Frederic Moulin, Rashida Jones, and more

Dispatches From The Front

Hey Tom and Brian.

Here’s a little insight into the Australian pay TV industry I got from my Uncle who is a major advertising executive. Foxtel, which is the only major nationwide traditional Pay TV operator left solvent that has cable and satellite infrastructure has after 20 years of operation a marketshare of around 30% of households in the country. Netflix on the other hand has managed to sign up 9% of all households since it’s launch earlier this year. Stan, Presto and Quickflix the three local Netflix clones are struggling however with less than 3% of households combined.

Since Foxtel took the drastic measure last year of dropping it’s minimum subscription fee per month to $25 in order to fight off the at the time un-launched $12 a month Netflix I’ll be interested to see if they can hold onto their marketshare longer than the much more expensive US cable and satellite companies.

- Nik

Netflix reaches 1.89 million Australians. Foxtel loses share (but not size) as Netflix expands pay and subscription TV market

Just a quick note. The newest version of Playon and Playlater deserve some air time from you gentlemen. The UI has been completely changed and turned into a DVR style interface. The system has a set it and forget it record style that will record new episodes when available and notification when available for new shows. Only just start messing with it but extremely promising.

- William

Tom and Brian, This week, my wife Eileen and I moved in to our new home. While setting up our entertainment center, she was confused as to why I was upset at all the cords I had to connect and hide throughout the living room. She asked, "aren't you a cord killer. Why do you need all these cords?" I explained 'cord cutting' was about not using cable anymore and she responded, "well the show should be called 'Cable Cutters' or 'Coax Killers' then! CORD Killers is misleading!"

It was an awesome conversation!

Your boss in beautiful Norfolk, VA, - Jeromy

All this talk about Hulu and VR is interesting. Don't get me enjoyment with Hulu is back since the no-commercials plan, but how can they figure out VR when they can't even send 5.1 surround audio. Come on Hulu. Netflix does it, Amazon does its, Itunes store has it, Vudu has it. Everyone has 5.1 or better surround sound encoded with their streaming content, except Hulu. Still Stereo. Like an old black and white movie. Guess it's too technically complicated?

- Jon

Hey Brian & Tom,

Since cutting the cord four years ago I've kept my old Directv dish laying around just knowing I'd come up with a new use for it. Yesterday was the day. I stripped everything off of it, bolted it to the old front brake rotors I just took off my car and slapped an old grate from a rusted out gas grill on it. I painted everything with high-temp grill paint and now I have a new deck fire pit for the price of free. I'll likely get much more enjoyment out of the dish this way than I ever did when it was hooked up to directv. -Eric

(P.S. - I'll put it on some stone pavers before using it to avoid the deck going up in flames. Also, the cover is from the old fire pit which I bent to match the oval shape of the dish.)



Preceded by:
"4 Kurious"
Netflix and Chips
Followed by:
"Other Tubes Named Red"