Tilting the Netflix windmill

My friend, [Andrei][Andrei], [points out][Andrei link dump] [an article][abovethecrowd article] as possible counter point to my [observation][first article] and [ridicule][second article].

It is [an interesting article][abovethecrowd article] for those not familiar with the legal basis created by the Right of First Sale or the Betamax case (though the application is not **literally** true in the case of Netflix. [Netflix revenue shares][hacking netflix], and has used similar deals [to bargain with in early streaming contracts][netflix warner]).

But, despite those good points, here is why this article is actually pretty terrible…

[hacking netflix]: http://www.hackingnetflix.com/2009/09/netflix-pays-a-revenue-share-on-about-half-of-rentals.html “Netflix Pays a Revenue Share on About Half of Rentals—Hacking Netflix.com”
[netflix warner]: http://articles.latimes.com/2010/jan/07/business/la-fi-ct-netflix7-2010jan07 “Netflix agrees to delay in renting out Warner movies—LA Times”
[abovethecrowd article]: http://abovethecrowd.com/2011/09/18/understanding-why-netflix-changed-pricing/ “Understanding Why Netflix Changed Pricing—AboveTheCrowd”
[Andrei]: http://zmievski.org/
[Andrei link dump]: http://terrychay.com/article/dvds-by-mail.shtml/comment-page-1#comment-682857
[first article]: http://terrychay.com/article/dvds-by-mail.shtml “DVDs By Mail”
[second article]: http://terrychay.com/article/translation-from-asshole-speak-to-english-of-selected-portions-of-netflix-ceo-reed-hastingss-e-mail-to-netflixs-entire-customer-base.shtml “Translation from PR-Speak to English of Selected Portions of Netflix CEO Reed Hastings’s E-Mail to Netflix’s Entire Customer Base”
[second article]: http://terrychay.com/article/translation-from-asshole-speak-to-english-of-selected-portions-of-netflix-ceo-reed-hastingss-e-mail-to-netflixs-entire-customer-base.shtml “Translation from PR-Speak to English of Selected Portions of Netflix CEO Reed Hastings’s E-Mail to Netflix’s Entire Customer Base”

Continue reading about my critique of the defense after the jump

The first lines outside Apple Store

You may have forgotten by now, but the first lines outside Apple Store were for the openings…

My graduate school friend, Dave, called me that morning and mentioned that an Apple Store was opening up in the area and we should check it out. We casually showed up just before noon and were totally blown away by the lines.

The line for Apple Store

The line for Apple Store
Apple Store, Palo Alto, California

Olympus C-2500L
(3 exposures, 1/200-1/400sec, f/2.9), iso100, 11.8mm (47mm)

I took this photo nine years ago today (October 6, 2001) outside Apple Store Palo Alto. It was the ninth Apple Store opening, and the first street-level Apple Store.

The sign reads: “5 down, 95 to go.” It is a reference to the fact that Apple has only 5% market share and the retail store concept was trying to reach the other 95%.

Apple modeled the store after the Gap. The anticipation buildup was stolen from the first lines for Microsoft Windows 95 six years earlier. Apple’s nearest competitor, Gateway Country Stores failed three years later in 2004. Microsoft would copy this idea eight years later in 2009with impending failure?

I’d say the retail store idea worked better than Apple could have ever imagined.

Discouraged by the lines that morning, we had lunch across the street at Pluto’s. When we finished, there was no line and we walked right in. They still had some free t-shirts when we left.

That was a good day.

Update: Apple and Microsoft go head-to-head with Microsoft’s fifth store-to-be.