Blockbuster's Elbowing into the Movie Streaming Racket [Blockbuster]

As though anyone needed to make this week's Netflix debacle any more confusing, Blockbuster's about to announce a streaming service to compete with Netflix's newly-single streaming service.

Blockbuster hasn't actually come out and said they're announcing streaming, but the invitations to their 1PM event today describe a "stream come true." Real subtle, guys. Though in fairness, a Blockbuster Streaming service wasn't exactly a well-kept secret: When Dish Network bought Blockbuster for $320 million, they said outright that one of the reasons was the potential to launch streaming.

One thing to keep an eye on is whether Blockbuster institutes a premium (more expensive) tier of service, which may have been one of the hangups with Netflix not being able to re-up with Starz. We're not sure what the library and pricing will look like just yet, so check back after the announcement for how Blockbuster managed to muck things up this time. [BGR, All Things D]

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Watch Live: Blockbuster Streaming Service Brings More Movies than Netflix [Blockbuster]

Watch out Netflix, big blue's coming for you. Dish Network subscriptions are getting bundled up with a new service called Blockbuster Movie Pass, which includes Blockbuster's DVD-by-Mail and a new media streaming service. The bottom line? More titles than Netflix.

The combination satellite, mail, and streaming service is pretty massive: 100,000 DVDs by mail, 4,000 movies streaming by web, and 3,000 to your TV. In keeping with the old Blockbuster plans, you'll be able to exchange your movies in store and get access to 3,000 games by mail.

Adding the new streaming service will start $10 a month for existing Dish Network subscribers—expect to pay more if you want more than one DVD a month. New subscribers will get one year free if they subscribe before the end of January. What about the rest of us? Too bad! Blockbuster Movie Pass wiil be available only to Dish Network subscribers—at least for now.

Should Netflix be shaking in its boots? The $10 plan would be a no-brainer if I subscribed to cable or satellite. Netflix's combination DVD and streaming costs $16 per month and doesn't offer games, or in-store exchange, which I always thought was a convenient feature. Blockbuster says it has more than anyone else, but Netflix's streaming library of 20,000 titles will probably keep a lot of people hanging on—no matter how disaffected they are with Netflix after the company's recent missteps. [Dish Network]

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Surprise! Music Execs Love Freemium Streaming Services? [Music]

It's a bit odd to see a major label executive saying he likes the freemium services Spotify, MOG and Rdio have established and that the industry has finally figured it out. Or is it not so odd?

Here's what Warner Music VP of Digital Strategy Michael Nash had to say to Cnet:

On Spotify, Rdio, MOG, and other services that offer free music: "The industry has finally figured out free. The recent announcement for all these free offers is from a licensing standpoint the right approach...Free didn't work before. It was once used (by such defunct sites as Imeem and Spiralfrog) to drive engagement with ads. What we're looking for now is for free to drive engagement with subscription services."

But as Jesus rightfully points out, part of the music industry's free music enlightenment came with the idea of paying artists even less in royalties while they struck lucrative cash deals with each service. So maybe it's no wonder why they like this new model so much. [Cnet]

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The Movies on Netflix Streaming Are About to Suck a Lot More [Video]

A large portion of the fresh movies that you can watch on Netflix's Watch Instantly streaming service are supplied through a deal with Starz. Like Toy Story 3 and Let Me In. Well, they're going to disappear on February 28.

Starz announced today that contract negotiations with Netflix have broken down and that when the current contract expires on February 28, 2012, their content will no be available on the streaming service.

"Starz Entertainment has ended contract renewal negotiations with Netflix. When the agreement expires on February 28, 2012, Starz will cease to distribute its content on the Netflix streaming platform.  This decision is a result of our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content.  With our current studio rights and growing original programming presence, the network is in an excellent position to evaluate new opportunities and expand its overall business."

We're not just talking newer releases that are made available thanks to the Starz deal. Everything from action favorite Big Trouble in Little China to Casino to Night of the Living Dead to The Toxic Avenger, along with 1000 other titles, are all courtesy of Starz. (Update: Night of the Living Dead is in the public domain, but it's currently listed as a Starz Play title, weirdly.)

This is bad news on the day after you needed to decide which Netflix streaming/DVD at home account you want before getting hit with a $6 monthly increase to your current subscription.

This isn't the first time Starz and Netflix have disagreed on what some believe to be an agreement that heavily favors Netflix. Earlier this year Starz announced they would be adding a 90-day waiting period for TV with movies following for Netflix Instant Streaming.

Fortunately, Netflix has several months to lure Starz back to the table, or secure other deals like the one it's got with Paramount, Lionsgate and MGM via Epix to fill in the hole. But as Netflix grows, it's increasingly difficult for the service to convince Hollywood that its service won't destroy the film and television industry. Netflix knows that it's gonna need the studios on its side to build out Watch Instantly as the DVD business slowly crumbles—and they're going to have to pay dearly for it, like they did for Mad Men, at $1 million an episode. Can Netflix afford it? [PR NewsWire via The Next Web]

UPDATE: Business Insider spoke to Netflix CEO Reed Hastings about today's announcement from Starz. He thanked Starz for being a content partner and explained that Starz content was a huge percentage of views a few years ago but that viewership has dropped off.

Because we've licensed so much other great content, Starz content is now down to about 8% of domestic Netflix subscribers' viewing. As we add a huge more content in Q4, we expect Starz content to naturally drift down to 5-6% of domestic viewing in Q1. We are confident we can take the money we had earmarked for Starz renewal next year, and spend it with other content providers to maintain or even improve the Netflix experience.

Your more Starz. [Business Insider]

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