Netflix, Facebook Get a Little Dose of Irony

Isn't it ironic when you use the Internet to make your business processes more efficient, and then it ends up breaking down and causing the exact opposite effect? This is exactly what happened with U.S. movie rental provider Netflix.

If you're not familiar with Netflix, it's a modern-day DVD rental service that lets customers rent DVDs online, and have them mailed directly to their homes. But yesterday, the site experienced a major outage that left customers all over the U.S. literally in the dark...or at least with dark TV screens. According to the Associated Press, DVDs that were to be delivered on Monday were likely delayed until today. Ahh, there's nothing like sitting down with a bowl of popcorn and sodas to watch a movie that isn't there!

Sure, glitches happen, and customers will always have to be aware of that when dealing with any form of technology. But I can see old-school supporters all over pumping their fists in the air yelling: "and you laughed at me when I said I'd walk to the video store to rent my movie!"

But Netflix isn't alone. Over in the Web world, there's another company facing some technical nightmares: Facebook.com, which just can't seem to stay out of the news these days! A security issue yesterday led to hundreds of photos being exposed for anyone to see, including private photos from Hollywood socialite Paris Hilton; and even Facebook founder Mark Zuckerberg! (Hey, if there's ever an argument for sympathy, it's to say "look, I was affected by this glitch as well!") To put the ironic icing on the cake, the loophole to gain access was discovered as a result of the company's attempt to ramp up privacy controls!

Supposedly the issue was fixed within the hour. The Associated Press noted that "Some members of social networks like Facebook post photos of themselves or others in potentially embarrassing or compromising situations that include illegal drug use or underage drinking that can cause trouble at school or work." Sorry, but if you're posting images like that, Facebook isn't the problem.

As for "normal" members, you can rest easy that computer hackers (likely the only people that would have figured out how to bypass security) were probably more interested in seeing Paris Hilton's photos than pix of you with your little puppy, or your little kid's b-day party!

Could New HD Red-Laser Disc Blow Blu-ray & HD DVD Out of the Water?

Wouldn't it be interesting if, after a year-and-a-half or so of the Blu-ray and HD DVD high-definition DVD formats duking it out for market domination, someone came up with a way to create high-capacity, standard red-laser discs? The existence of such a technology might not be as far off the horizon as you think.

According to Display Daily, a London, England-based company called New Medium Enterprises (NME) Ltd. has developed what it calls the HD-VMD disc (the "VMD" stands for "versatile multi-layer disc") that can store up to 30 GB worth of content using the same processes used for creating standard DVDs.

This means that you can watch HD movies using your trusty, old DVD player (with a firmware upgrade, of course), plus "other off-the-shelf technology". Display Daily reports that, because the discs rely on the same processes currently used to create DVDs, the cost of each disc would be much lower than what one might pay now for a Blu-ray or HD DVD disc (of course it would, in turn, be higher than what you pay for a standard DVD). NME plans to launch a pair of players and discs of the new HD-VMD format next month.

If this technology lives up to its promises, it could mean an end to the format war once and for all. Ironically, it would also bring everyone right back to where we started, with the standard red-laser disc format. Essentially, two camps have been working furiously to find new methods and standards of fitting more information on a disc, offering neat, interactive features, and creating highly-advanced players, only for someone to come out and squash the whole thing by simply finding a way to update the already existing, tried-and-true, method. Of course, we'll just have to wait until next month to see how well HD-VMD performs, and how practical it is to implement. But my question is: why didn't someone come up with this in the first place?

[Photo: The ML 622S HD VMD Multilayer Player from NME Inc. claims to be able to play back high-definition, 1080p content via HDMI, and using the Sigma Designs EM8622L chipset. It can also read all types of disc, including standard DVD, CD, and even MP3 discs; and can playback MPEG-1/2/4, VC1, WMV9, and H.264 video; as well as JPEG and BMP photos. Data transfer rate is 45 Mbps. It is scheduled for availability in the U.S. in Q3 for US$199, and will come in a choice of black, red, grey, or white finish.]

HMV Drops CD Prices by as Much as 33%

Is the traditional music CD in that much trouble? As of today, HMV says it will sell the majority of its music CDs at a 20% lower price point. In some cases, we’ll see up to a 33% price cut. Is this a strategic move on HMV’s part to become the leader in the music CD arena; or a necessary step to keep that part of the business alive?

Music retailer Sam The Record Man just closed the doors to its iconic downtown location this summer, clearly as a result of stiff competition from the online digital music marketplace. It’s no secret that people are downloading music online, but this isn’t to say that there aren’t still people who prefer a store-bought CD so they can enjoy the high-quality sound, and pamphlet inserts. Nevertheless, the number of customers who fit this group have dwindled considerably over the past few years.

HMV has made some pretty smart moves in order to remain profitable in the wake of the changing music landscape. The company has historically been very big in the DVD retailing side, which adds another source of revenue in addition to CDs. Last summer, HMV also added video games and gaming systems to its product roster, recognizing the huge growth in this particular area. This bold, new price reduction strategy can only mean good news for HMV. It will be interesting to see if other music retailers follow suit.

Another DVD Piracy Ring Busted

Another counterfeit DVD shop was busted in Canada. In Mississauga, ON, just 30 minutes west of Toronto, Ontario police seized more than 75,000 illegal copies of recent hit movies, including Michael Moore’s Sicko, and The Simpsons Movie. Reports indicate that this operation, which was filmed by CBC News hidden camera, managed to create and sell copies of The Simpsons Movie a mere 14 hours after it hit theatres! As for profit, although undoubtedly healthy for those involved, this wasn’t at the expense of a consumer’s deep pockets: the discs sold for just $4 a piece!

In February of this year, the International Intellectual Property Alliance (IIPA) pegged Canada as a leading manufacturer and exporter of bootlegged movies such as those just seized, and illegal devices that facilitate pirated activity, like “modification chips” used to allow counterfeit games to be played on videogame consoles. In fact, the IIPA said that the issue of unauthorized camcording in Canada (where someone secretly films a movie in the theatre, then creates copied discs of said recording) is nearing “crisis” levels: in 2006, 20-25 per cent of pirated DVDs discovered were sourced back to Canada!

According to CBC News, the recently squashed Mississauga, ON operation had produced likely close to $21 million worth of blockbuster movies. What’s baffling is that many of the store’s “regular” customers had no problem providing their names and phone numbers for the company files; and some even stopped by as the accused were being arrested, and asked when the store would re-open! Canadians either don’t understand that counterfeit DVDs are illegal; or they simply don’t care.

It will be interesting to hear what the IIPA and the Canadian Anti-Counterfeiting Network (CACN) have to say about this: in May 2007, the CACN set out an action plan for the government to address problems relating to counterfeiting and piracy. This incident is sure to add fuel to its fire.