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Porter Bibb, managing partner at Mediatech Capital Partners LLC, and Kevin Landis, chief investment officer at First Hand Capital Management, discuss Netflix Inc.’s fourth-quarter results and outlook. Although results improved, a large amount of Netflix streamed content licensed from Starz will disappear this month.  More importantly, their long term business model is “not remotely sustainable” as programming acquisition costs continue to skyrocket, says Bibb.  Bibb and Landis speak with Emily Chang on Bloomberg Television’s “Bloomberg West.”  (6 minutes)

Time Warner Cable has opened up access to HBO GO and Max GO to all customers who subscribe to the premium movie channels.  A brief beta test for Time Warner’s super-premium Signature Home customers concluded earlier this week and the service is now available to all.

Stop the Cap! tested the HBO GO service earlier today and can report the service is up and running for Time Warner customers.

HBO GO's current movie selection includes a number of older titles.

The most cumbersome part of both services is the authentication process.  Graceful it is not.  Customers have to start their journey at either the HBO or Cinemax “TV Everywhere” portal, select their cable operator, and then get prompted to authenticate their cable TV service.  Time Warner’s authentication process makes this especially confusing by notifying customers not to use their bill payment service account username and password.  Instead, customers are told to use login credentials for the cable company’s customer information and authentication portal — My Services.  It is easy to get confused which username and password to use.  If you do not have a “My Services” account, the registration process is even more tedious, because you have to wait for confirmation e-mail messages and hunt down a current cable bill, if you receive one in the mail at all.

Having registered for other TV Everywhere services from Time Warner Cable before, it was more than a little annoying going through the same process all over again for HBO.  HBO and Max GO also require the subscriber to choose a username and password on those sites as well, which means yet another account and password to remember.  After about 10 minutes of the irritating multi-step process, access was finally granted.

HBO Go currently has 230 movies available for instant viewing, a large number of which are hardly recent.  The 1953 version of Titanic, for example.  Really?  Oh, God with George Burns and John Denver, the 1979 please-edit-me snoozefest Star Trek: The Motion Picture, and all three Back to the Future movies seemed like a lot of dated filler material for a $15 a month premium movie channel.  Better offerings were found under the series, specials, and comedy categories which delivered a full library of a number of HBO productions, as well as current events shows like Real Time with Bill Maher.  (The latter only included a handful of episodes from the current season and some earlier editions.)

Our biggest trouble came when we tried playing from the menu of titles.  This is no Netflix.  We found picture quality often lacking, with plainly visible screen anomalies, and the stream was interrupted several times for buffering.  Either pent-up demand for HBO Go is causing Time Warner customers to pound the service during the business day, or HBO needs to beef up its server capacity. We did several speed tests and found our connection stable at 30/5Mbps, so this was not a Time Warner Cable broadband problem.

The best part about HBO and Cinemax GO is that it comes free with subscriptions to one or both channels.  We’d have a hard time justifying paying extra for the current online viewing experience.  It also remains ironic that Time Warner Cable executives continue to foster a desire to implement Internet Overcharging schemes like usage caps and/or consumption billing while encouraging customers to consume more bandwidth with online video services such as these.

Time Warner Cable partner Bright House Networks is anticipated to launch both services themselves shortly.

Virgin Media is doubling customer broadband speeds... for free.

Great Britain is leapfrogging ahead in the global broadband speed race with two announcements this morning that represent major advances in British broadband.

First, Virgin Media is announcing it will double the broadband speeds for four million of its customers starting next month, for free.

The company says it will be the first residential provider in the United Kingdom offering 120Mbps broadband — a 20Mbps speed increase for their existing 100Mbps clients.  Customers on Virgin’s 10, 30, and 50Mbps tiers will soon receive free upgrades to 20, 60, and 100Mbps, respectively.  Those on the company’s popular 20Mbps plan will have their speeds tripled to 60Mbps.

That’s a major advancement for British broadband, where dominant BT-provided DSL runs at speeds averaging just over 6Mbps.

The new speeds were made possible by “modest investments” in Virgin’s fiber network, according to Virgin Media CEO Neil Berkett.

Berkett said the new speeds would help meet growing demand for faster access to support the proliferation of new digital devices.  Because Virgin invested primarily in fiber and cable broadband, speed upgrades on their existing infrastructure come “at a fraction of the cost of other network operators.”

That understanding was not lost on Sky Broadband, a growing competitor in the United Kingdom.  Sky this morning announced it has launched a newly-upgraded 100Gbps optical network to support its 3 million broadband customers.  The company is spending several hundred million British pounds on updating its network to position itself to become Britain’s largest Internet Service Provider.

Sky’s new network is based on the latest Alcatel-Lucent fiber technology, capable of supporting 100Gbps speeds on each of the individual 88 wavelengths on a single optical fiber.  Sky deployed the new dense wavelength division multiplexing technology on its existing optical fiber backbone network, demonstrating the infinite upgrade possibilities fiber optic technology offers.

Sky pitches its network capacity to consumers as a key benefit of its service, noting it is free of “traffic management” policies that reduce speeds for customers of other Internet providers.

The upgrade arrives just in time to handle the expected explosion of online traffic with this week’s introduction of Netflix streaming across Great Britain.

Netflix is selling $400 million in stock and convertible notes to bolster its cash-on-hand as the company faces the imminent loss of important video content for its streaming movie service.  Netflix stock has paid the price in what some investors are calling the worst deal ever. Michael Pachter, an analyst with Wedbush Securities, suspects banks might be turning Netflix down for traditional, less expensive bank loans, leaving the expensive stock sale its only alternative.

Netflix continues to lose subscribers upset over recent price increases and impending content reductions on the company’s streaming service.  Much of Netflix’s more-recent streaming movie library comes from its expiring deal with Starz, and that content will disappear in February.

Banks may be worried the forthcoming downsizing of Netflix’s online selection combined with increasingly expensive streaming renewal deals for the programming that remains may make the company too risky, even if they use the money to acquire additional content. The company might be one rate increase away from a subscriber exodus.

Netflix CEO Reed Hastings isn’t inspiring confidence among investors either.  He’s been selling nearly 5,000 shares of Netflix stock every week since the beginning of the year, according to filings with the Securities and Exchange Commission.  If Hastings ultimately dumps 260,000 shares in the company he founded, investors wonder, why should they buy?

The Wall Street Journal financial MarketBeat blog wonders just how many more blunders are in store for the former high-flying company:

So Netflix is raising a bunch of cash by selling stock when it’s super cheap, after spending a lot of money earlier this year buying back stock when it was super expensive.

This comes after it raised its prices high enough to irritate half its customers, then tried to chase off the other half by shunting them off to a splinter company named after a pot-smoking Elmo. Then it said, never mind, just kidding, please don’t leave us. We can’t wait to not read the business-school papers written about this one!

For some mysterious reason, investors are once again fleeing in disgust from Netflix’s stock, which is down more than 4% this morning at $71. And analysts are not too pleased, either — although, these being analysts, there are of course some who say everything’s just fine, the stock’s a great bargain.

Pachter believes either the company’s chief financial officer is “a moron,” or the company is in growing trouble, unable to convince traditional lending sources with cheap money to share some with Netflix.  The company still expects a financial loss in the coming quarter, although it says subscriber flight is now diminishing.  Netflix is also trying to find new content to keep subscribers satisfied, although much of it consists of repeats of low budget cable documentary and reality shows. Considering these challenges, affordable liquidations could provide financial relief and a strategic approach to managing their resources effectively.

Completely overshadowed by the stock sale are two just-announced Netflix acquisitions: a recommissioned Arrested Development, a quirky comedy which ran on Fox from 2003-2006, and the BBC’s ruthless 1990 political intrigue mini-series House of Cards.

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Michael Pachter, an analyst with Wedbush Securities, talks about Netflix’s agreement to sell $400 million in stock and convertible notes to bolster cash as it increases spending for online rights to films and TV shows. (Bloomberg News)  (8 minutes)

Besides sports, the biggest challenge for cord-cutters is to find access to 24-hour news channels they give up when they cancel pay television service.  While cable news often doesn’t actually spend much time on “news” when breaking stories are few and far-between, when something serious does happen, cord-cutters looking for live coverage can and do miss access to news networks.

But now a New York startup, RadixTV, has a solution for news junkies: Rtv.

Yesterday, the company launched a package of four cable news networks — Bloomberg, CNBC, CNBC World, and MSNBC streamed live 24 hours a day for $14.99 a month.

That’s a steep price for four channels, of which MSNBC is arguably the most important.  The company plans to expand to 10 channels in the future, including CNN, Fox News, and international news networks like BBC World, France 24 and Al Jazeera English that American cable companies routinely ignore.

Kaul

Rtv is pitched primarily to Wall Street — financial firms, brokerages, and investment businesses that want access to continuous business news but don’t need a traditional cable package.  In fact, the package is technically only supposed to be sold to business customers, but anyone can sign up if they say they are stock traders, accountants, investors, etc.

Stop the Cap! sampled Rtv this morning and found the service to work well with our broadband connection, although at times crawling news and stock prices found at the bottom of the screen on some channels seemed less smooth than they could be.  It occasionally was distracting.  MSNBC was the most compelling channel in the lineup, although we’d love to see international news channels even more.  But $15 a month is still a high price to pay.

The company’s CEO, Bhupender Kaul, worked for Time Warner Cable for nearly two decades, and believes the future of cable TV is likely to be Internet-based, with programming sold in niche packages like his.  True a-la-carte may be too unwieldy for providers to pull off, but selling groups of channels together might not.  Still, Kaul seems intent on not aggravating the industry as much as earlier cord-cutting online viewing services, which have all since been sued out of existence.  Local broadcast and general interest programming does not come with Rtv.  While a six figure-salaried Wall Street banker won’t mind $15 a month, you might.

Further reading: In New Web TV Service, A Glimpse of the Future