Netflix streaming service suffers licensing setback with Sony

(Credit: CNET Networks)

UPDATE 5:20 p.m.: To include Sony statement

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.

"This issue is not specific to Xbox or any other individual platform," Sony said in an e-mail statement on Wednesday evening. "Sony Pictures is currently in discussions with the relevant parties to resolve certain licensing matters related to the distribution of its motion pictures. Given the ongoing nature of these discussions, we don't think it is appropriate to comment further at this time."

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 its own film offering).

[hermantf]

Streaming is no doubt, the future of "movie rentals." But it is still in its infancy. Remember that the Roku was only introduced about 6 months ago. I'm sure that all these details will be worked out soon enough, and we, the consumers, will come out winning.

[stevesancarlos]

Hey Greg Sandoval--Is anybody proofing your writing? In this post about Netflix as well as your post about iTunes and DRM-free music, you incorrectly spell "it's."

It's = Contraction for "It is."
Its = Possessive form, as in "would have preferred to see Microsoft build ITS own offering." Notice the lack of an apostrophe.

[sanenazok]

proofreading costs money! Just like testing software. Let's let the users fix the problems, instead.

[sandonet]

You are absolutely right. I have a habit of doing that. Please forgive me. And no, I wait too long to send to the copy desk so I can do updates. I have to change both bad habits. I apologize.

[mudixon]

Streaming may be the future, but until the video quality moves to blu-ray quality and bandwidth limitations that some ISPs force on the public are eliminated, it will never go global. Plus, some people just simply love owning movies.

[gargoyle_xlvii]

I find it interesting in that the ISP sell the internet by say that you can watch videos and load music,
But once we start doing it , then they cry about how much bandwidth is being eaten up. The try to tell us that a small minortity of people are the culprits. Does this mean that they really do not have sufficient bandwidth for a majority of people to watch streaming videos and audio?

So the problem will be for services like Netflix and others maybe the cost to the user, what will it cost you if you watch a few movies. How much data is transmitted to watch a movie in good quality? Will you run out of bandwidth usage after one or two movie?

So what is the cost of a Netfix account plus the added cost maybe of the extra bandwidth usage?

[Silver_2000]

There is no way that the average user is going to dload enough video to hit the caps that ISPs place on Internet. If you totally replace paid TV with Internet dloads then you should not be surprised that the conglomerates that control both will get you for some extra $$ when your 24x7 streaming makes you hit the cap. Or you could get a job or go outside a few min a day...

[jessiethe3rd]

I must say the Netflix streaming is absolutely fantastic.... very very nice stuff here folks! Cable companies know that slowly but surely IPTV and the like is going to eat into their profits and that's why the data limits are starting to come around. I don't think Microsoft will come out with an IPTV solution in this revision but I think in the next revision you will probably see this technology really start to be built in.
Seriously too - the CEO of Netflix is on the Board of Directors at Microsoft.... WHAT DO YOU EXPECT!?
Sony may be pissed but they didn't have the relationship and they want to sell BLURAY versus looking at new technologies to enable users to get past media and move onto just the entertainment!