Netflix Takeover?, Amazon Competes!, Lame Hulu-CBS Deal

This week, it came out that a man named Carl Icahn owns 10% of Netflix's stock. This is more than he owned a short time ago - and he's used some of his personal billions to acquire these shares, as well as through his investment business. For those who don't know, Icahn is well-known as an activist shareholder. 

So, if he invested in a company & it starts under-performing, he tries to take control of it. He buys more of its stock, then proposes replacements for the business' leadership - with people who'll follow his biz plans. The idea is that the company will be sold to a competitor, or will spin off some division that is doing poorly, or something along those lines...

In response to Icahn, Netflix has adopted the "poison pill" corporate defense. The phrase comes from the idea that if a "shark" (the guy trying for a hostile takeover) "swallows" (wins) his prey (the company he takes over), then the shark will eat something that will "hurt." It's "poison" in that the method might limit the shares the take-over-er can buy, or make the business harder to control. 

Here, Netflix is using a shareholder rights plan to do their work. Folks in finance and entertainment are all a-buzz about this, especially because Icahn wants to sell Netflix to its biggest rival: Amazon. Holy ----.

Sticking with Netflix for a second - if only to discuss their biggest competitor - Amazon Prime will now have a monthly instead of a yearly fee. Yes, anyone who wants to check out their large selection (and reduced shipping fees), will be able to try them on the same terms as they can try Netflix and Hulu Plus. It's going to be one hell of an incentive, to not have one free month to decide on an $80 fee for the retail giant's video selection.

Of course, the $7.99 monthly charge that Amazon is offering as of now comes out to about $15 more than the yearly cost, but you'll be able to quit at any time. The increased fee doesn't sound too bothersome in light of the added flexibility that it will offer.

I've been referring to the "Streaming Wars" for a long time now, and it looks to be heating up more and more with time. I believe that this will work out very well for consumers, yes - added flexibility being what a lot of internet VOD options are missing... However, whether the consumer do come out the winners here will depend on whether Carl Icahn gets his way and sells Netflix off to Jeff Bezos' company...

Finally, we come to CBS, which has long been averse to letting Hulu get its hands on their shows. The AV Club article that filled me in on the news (I had to get one AVC link in, of course) correctly notes that CBS may have such a high viewership because they actively discourage the "watch anytime" model that exists in this world of Hulu, Corporate Sites that offer video, and Cable VOD services.

It's also kind of funny, because CBS decided to not give Hulu access to any currently on-going shows. And what is available (so, Star Trek eps and I Love Lucy and such) can only be accessed by Hulu Plus subscribers...

By the by, if you like, you can learn about poison pills on Wiki. I'm a lawyer, so I already know this stuff...

Yes, yes, this may sound like one very dispassionate post on my part, but it's news that's worth pointing out. These all reflect big changes to come for the online video market (the not-illegal one, anyway). And so many of my past posts were dedicated to Netflix/Hulu/Amazon Prime news...

And don't worry - I've got a seriously-impassioned news post coming up next week.

You can look forward to my next indie film review by Sunday latest. I'll try to post it tomorrow, if I have time. NYC's been hit by another awful storm, and I have a lot of things to do right now...