peerflix

Peerflix goes to dollar prices

I have written several times before about Peerflix — Now that I’ve started applying some tags as well as categories to my items you can now see all the Peerflix stories using that link — and the issues behind doing a P2P media trading/loaning system. Unlike my own ideas in this area, Peerflix took a selling approach. You sold and bought DVDs, initially for their own internal currency. It was 3 “Peerbux” for new releases, 2 for older ones, and 1 for bargain bin disks.

That system, however, was failing. You would often be stuck for months or more with an unpopular disk. Getting box sets was difficult. So in December they moved to pricing videos in real dollars. I found that interesting because it makes them, in a way, much closer to a specialty eBay. There are still a lot of differences from eBay — only unboxed disks are traded, they provide insurance for broken disks and most importantly, they set the price on disks.

One can trade DVDs on eBay fairy efficiently but it requires a lot of brain effort because you must put time into figuring good bid and ask prices for items of inconsequential price. Peerflix agreed that this is probably a poor idea, so they decided to set the prices. I don’t know how they set their initial prices, but it may have been by looking at eBay data or similar information.  read more »

Paradox of abundance, with DVRs and Netflix/Peerflix

An interesting article in the WSJ yesterday on the paradox of abundance describes how many Netflix customers are putting many “highbrow” or “serious” movies on their lists, then letting them sit for months, unwatched, even returning them unwatched.

This sounds great for Netflix, of course, though it would be bad for Peerflix.

It echoes something I have been observing in my own household with the combination of a MythTV PVR with lots of disk space and a Peerflix subscription. When the time pressure of the old system goes off, stuff doesn’t get watched.

This is a counter to one of the early phenomenon that people with PVRs like Tivo/MythTV experience, namely watching more TV because it’s so much more convenient and there’s much more to watch than you imagined. In particular, when you record a series on your PVR, you watch every episode of that series unless you deliberately try not to (as I do with my “abridged” series watching system where I delete episodes of shows if they get bad reviews.)

In the past, with live TV, you might be a fan of a series, but you were going to miss a few. They expected you to and included “Previously on…” snippets for you. For a few top series you set up the VCR, but even then it missed things. And only the most serious viewers had a VCR record every episode of every show they might have interest in. But that’s easy with the PVR.

We’ve found some of our series watching to be really delayed. Sometimes it’s deliberate — we won’t watch the cliffhanger final episode of a season until we know we have the conclusion at the start of the next season, though that has major spoiler risks. Sometimes there will be series fatigue, where too much of your viewing time has gone to a set of core series and you are keen for something else — anything else. Then the series languishes.

Now there is some time pressure in the DVR. Eventually it runs out of disk space and gets rid of old shows. Which is what makes the DVDs from Peerflix or Netflix in even more trouble. Some have indeed gone 6 months without watching.

As the WSJ article suggests, part of it relates to the style of show. One is always up for lighthearted shows, comedies etc. But sitting there for months is The Pianist. For some reason when we sit down in front of the TV and want to pick a show, Nazis never seem very appealing. Even though we know from recommendations that it’s a very good film.

When the cinema was the normal venue for films, the system of choice was different. First of all, if we decide we want to go out to a movie, we’ll consider the movies currently playing. Only a small handful will be movies we think worthwhile to go to. In that context, it’s much more likely we might pick a serious or depressing movie with Nazis in it. It could easily be the clear choice in our small list. In addition, we know that the movie will only be in cinemas for a short time, any given movie, especially serious ones, may be gone in a few weeks. That’s even more true in smaller markets.

I’ve also noticed a push for shorter programming. When you’ve rented a DVD, your plan for the evening is clear, you are going to watch a movie at home. When you just sit down to choose something from your library, the temptation is strong to watch shorter things instead of making a 2 hour committment to a longer thing.

These factors are even more true when there are 2 or more people to please, instead of just one. The reality seems to be when the choice is 2 hours of war or Nazis or a 22 minute TV comedy, the 22 minute comedy — even several of them in a row — is almost always the winner. Also popular are non-fiction shows, such as science and nature shows, which have no strict time contract since you can readily stop them in the middle to resume later with no suspense.

Anyway, as you can see the WJS article resonated with me. Since the phenomenon is common, the next question is what this means for the industry. Will the market for more serious movies be diminished? The public was already choosing lighter movies over serious ones, but now even those who do enjoy the serious movies may find themselves tending away from them.

Of course, if people take a DVD from Netflix and leave it on the shelf for months, that actually helps the market for the disk in the rental context, helps it quite a bit. Far more copies are needed to meet the demands of the viewers, even if there are fewer viewers. However, the real shift coming is to pay-per-view and downloading. If people look at the PPV menu and usually pick the light movie over the serious one, then the market for the serious ones is sunk.

Peerflix falls down

I’ve written a few times about Peerflix the P2P DVD trading system similar to some of my own ideas. After trying it for a few months, I have to report trouble.

As I feared, as a DVD drops in popularity, it means somebody will be stuck with it. I feel it should be the original contributor but in Peerflix, it’s whoever happens to have traded for it most recently. Back in April, I got in 4 DVD trades for high quality movies 1-2 years in age. In particular for Momento, Mystic River, School of Rock and A Mighty Wind. I have been slow to getting to watch these, so I’ve gotten to see just how many chances there have been to return them.

In 2 months, we’ve seen just a couple of requests for Momento and Mystic River. In all those cases, if I didn’t respond to the request within a short time, a few hours at most, somebody else would send off their copy of the disk and I would remain stuck with it. Of course since I have not yet watched Mystic River, I may have just not been motivated enough to say yes. Today I got my first request to send off A Mighty Wind and did not agree in time. I have not ever gotten a chance to send off School of Rock.

Now for “new releases” this is not the case. The DVDs I contributed that were recent and in high demand did get requested quite quickly. But the lesson quickly learned is that if you want to watch a slightly older DVD, you truly are buying it rather than borrowing it. If rapid watching is your goal, trading off a recent DVD for an older one will leave you in the lurch.

Now it’s true that at video stores, they say that only new releases really draw the volume, so this perhaps is no surprise. But it’s also not a very workable system. I was debating recommending my family in Canada join up, but with the smaller membership group there, I fear it could be even worse. The cheaper plans from Netflix or other competitors make more sense.

Update: I don’t watch DVDs very often due to my MythTV always having good HD shows in it (once you have HD it’s hard to go back to regular TV or even DVD) so I’ve seen frightening patterns. Peerflix put out a recommendation for Memento on their blog, so I now get requests for it moderately often. However, in the past 8 months, I have barely seen any requests for Mystic River, School of Rock or A Mighty Wind, all top-rated films if a few years old. And none of the couple of requests I have seen for these films have come when I was around — and I’ve only been away perhaps 15% of the time at most.

Update2: School of Rock was finally requested in December, I got the Pianist in exchange. Probably another long-term camper.

More on Peerflix experiences

Earlier I reported on Peerflix, which is implementing a P2P DVD sharing system with similarities to some of my own ideas. I have tried it out a bit now, and learned a bit more. I also have updated experiences with Peerflix.

The web site is marked beta and still very buggy, which is bad, but my first try on the service was first-rate. I mailed off my first DVD, Eternal Sunshine of the Spotless Mind, on Wednesday to somebody in San Jose (who almost surely got it today) and got the replacement for it — by strange coincidence another memory-related movie called Memento in the mail today. That is faster than most of the services, though people like Netflix could be this fast if they decided to take the same step and trust you when you said you mailed a disk, rather than waiting for it to arrive.

All this is good, but there’s still a killer flaw in the idea of actually selling the DVDs. All DVDs will have a limited lifetime of high-demand. As demand drops below supply, somebody holding the DVD at that time will get “stuck” with it, though you can fix that by being fast on the draw in agreeing to be the one to mail any new requesters that do come along.  read more »

P2P DVD Exchange

For the past couple of years, I've been mulling over an idea for a different kind of DVD "rental" company, similar in ways to the popular NetFlix. Now I have encountered a new company called Peerflix which is doing something similar. Is it annoying or vindicating to see somebody else run with something? :-)

So instead I will comment on Peerflix, which I am going to try out, and what I planned to do differently.

The rough idea is a movie network that doesn't own the movies. The members do. The members declare what disks they have that are available to go out (key in or scan UPC codes or just put disks in drives) and, just like netflix, they also browse the list of DVDs and pick what they would like to rent. For each disk you have out, you are entitled to one in (approximately), and somebody close to you, who has the disk you want, is told to mail it to you.

Once scaled up, it's faster than netflix (the disk is mailed to you directly from the last person to have it, rather than going through the warehouse) but mainly it's vastly cheaper. In theory it could even run for free, with postage and mailers being the only cost -- plus of course the initial disks you introduce into the system. Netflix 3-at-a-time is $216/year, the one at a time is $120 per year.

There are, however, a number of interesting problems to solve in doing this, and some special factors you may not know about Netflix.  read more »

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