Mike wants to "cut the cord" because he just found out that Aereo is available to him. Leo says that's all he needs, as Aereo offers high quality HD broadcast quality thanks to millions of tiny antennas. It offers DVR capability as well.
Taylor is excited that Netflix received 14 Emmy nominations this year for their two original series, "House of Cards" and "Arrested Development." Leo says that is amazing and points to the fact that while Netflix isn't really known for high grade programming to the masses, they're putting out some fantastic quality products. Netflix has benefitted by hundreds of thousands of new memberships just for streaming those shows. So it's a great financial move as well.
Michael has been buying movies from iTunes, but he can't play them on the Roku streaming. Leo says unlike music from iTunes, movies and TV shows are still burdened with copy protection, and are only allowed to play on Apple devices. This is one of the reasons why Leo tends to stream movies from Netflix, rather than download them. Amazon is another option if he's a Prime member because movies and TV episodes are streamed freely.
Scott has a new poll at AVS Forum - Is the end of physical media inevitable? With more people choosing streaming options for their entertainment needs, what's the point of getting physical media? Well, Leo says that while streaming is convenient, the enthusiast will play the quality card and say that Blu-ray discs are a far better experience because streaming is highly compressed. Streaming is also hard on films, like Lincoln, that have a lot of dark lighting and colors.
Roseanne doesn't watch TV and her new iMac doesn't have an optical disc player in it. She'd like to watch both her DVDs and her VHS tapes. Leo says that DVDs are just the VHS tapes of today. The real trends are towards streaming online via services like Netflix and Hulu+.
Dan got a new 802.11n router and when they stream Netflix at night, nobody else can use the internet because it gets too slow. Leo says this is because of his bandwidth. Netflix uses a ton of bandwidth, and after 6pm, over 40% of all internet traffic is Netflix. Dan could use a hard wired connection from the router to his PlayStation, but he only has so much bandwidth. He could pay to get more, but Netflix may just increase the picture quality if it gets more bandwidth and he'd be back to square 1.
Leo is back from the Super Bowl, and he says football is a lot like the tech world. High risk, high reward plays in football can result in a touchdown. Much like an app, such as Instagram. Then there's companies that grind out a running game, and switch directions - pivoting when there's trouble up ahead. Leo says that's Netflix.
Netflix CEO Reed Hastings has announced that the company has passed over a billion hours in video streaming. But in announcing it on Facebook and Twitter, he may have violated SEC rules about informing investors properly and could be subject to civil action.