TidBITS#604/05-Nov-01
=====================

  Internet grocers may be fighting an uphill battle, but for Alex
  Hoffman, Netflix proves that an Internet business can best the
  near-ubiquitous video store. Derek Miller joins us to compare two
  Palm word processors, WordSmith and Word To Go. Mac OS X-only
  releases continue apace, with iDVD 2, Snapz Pro X 1.0.1, and
  Timbuktu Pro 6.0.1. Other important releases include iTunes 2,
  Netscape 6.2, and GraphicConverter 4.1, which support both
  operating systems.

Topics:
    MailBITS/05-Nov-01
    TenBITS/05-Nov-01
    How You Slice It: Two Mac-Friendly Palm Word Processors
    Worthy Web Sites: Get Your Kicks with Netflix

<http://www.tidbits.com/tb-issues/TidBITS-604.html>
<ftp://ftp.tidbits.com/issues/2001/TidBITS#604_05-Nov-01.etx>

Copyright 2001 TidBITS Electronic Publishing. All rights reserved.
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MailBITS/05-Nov-01
------------------

**iTunes 2 Now Available** -- iTunes 2, introduced with Apple's
  new iPod, is now available as a free download. Currently the
  showcase of Apple's digital hub strategy, the music player adds a
  10-band equalizer with 22 presets, a crossfader for smooth
  transitions between songs, and automatic synchronization with the
  iPod (see "iPod Makes Music More Attractive" in TidBITS-603_). The
  update also boasts CD burning at twice the speeds of the original
  version. iTunes 2 is available for Mac OS 9.0.4 or later (Mac OS
  9.1 if you want to burn audio CDs) as a 3.4 MB download.

  A separate iTunes 2.0.1 for Mac OS X is also available, after
  Apple pulled the first version due to a problem with the installer
  that could either erase files or set permissions incorrectly - see
  TidBITS Talk for more details. (If you downloaded iTunes 2 for Mac
  OS X and encountered no difficulties, you don't need to install
  version 2.0.1. However, Apple recommends that you delete the
  iTunes.pkg installer file - go to the Library folder at the top
  level of your hard disk, open the Receipts folder, and locate the
  file there.) iTunes 2.0.1 for Mac OS X requires Mac OS X 10.1, and
  is a 3.9 MB download. U.S. English and Japanese versions are
  currently available; Apple says additional localizations will be
  available soon. [JLC]

<http://www.apple.com/itunes/>
<http://www.apple.com/ipod/>
<http://db.tidbits.com/getbits.acgi?tbart=06608>
<http://db.tidbits.com/getbits.acgi?tlkthrd=1515>


**Netscape 6.2 Released** -- Netscape Communications has released
  Netscape 6.2, bringing full Mac OS X compatibility and fixing
  bugs. The new version exists as an application package for Mac OS
  X, which means installation is merely a matter of dragging the
  Netscape file to your hard disk. A number of problems have been
  fixed, such as sluggish performance on dual-processor Power Macs
  and LDAP functionality. Netscape 6.2 requires a PowerPC 604e
  running at 266 MHz or faster, with at least 64 MB of RAM and Mac
  OS 8.5 or later. The Mac OS X version is a 16.9 MB download; the
  Mac OS 9 version remains an active installer that downloads just
  needed modules, so be prepared for a potentially lengthy
  installation process. [JLC]

<http://db.tidbits.com/getbits.acgi?tbart=06522>
<http://home.netscape.com/eng/mozilla/ns62/relnotes/62.html>
<http://home.netscape.com/computing/download/>


**GraphicConverter 4.1 Released** -- Lemke Software has updated
  its popular shareware image-editing application, adding support
  for even more image file formats and incorporating bug fixes.
  GraphicConverter 4.1 adds support for importing JPEG2000 and Nokia
  .pict images, and improves TIFF importing. The program also
  supports ColorSync profiles during printing, adds an unsharp mask
  (image sharpening) feature, and improves functionality under Mac
  OS X. GraphicConverter 4.1 is a free upgrade for registered users;
  the shareware price is $30 for European residents and $35 for
  users outside Europe. The file is a 3.4 MB download, and is
  available in Carbon, Classic PowerPC, and 68K versions. [JLC]

<http://graphicconverter.net/>


**Poll Results: I Saw, I Paid, iPod** -- Last week brought Apple's
  announcement of the iPod portable music player and was followed
  immediately by criticism that the $400 price tag was too high for
  what the device does. TidBITS readers tend to agree, with less
  than a quarter of respondents in our poll saying that they would
  seriously consider paying $400 or more for an iPod. But Apple's
  design efforts didn't go unnoticed - 40 percent of respondents
  would consider the iPod at $300, which is still costlier than the
  competition, though another 28 percent weren't interested unless
  it cost around $200. The upcoming holiday shopping season should
  provide a sense of whether or not Apple has overestimated the
  price people are willing to pay. [ACE]

<http://db.tidbits.com/getbits.acgi?tbpoll=74>
<http://db.tidbits.com/getbits.acgi?tbart=06608>


TenBITS/05-Nov-01
-----------------
  by TidBITS Staff <editors@tidbits.com>

  Now that Mac OS X has evolved into a far more usable operating
  system with the release of 10.1, we're starting to see both new
  versions of applications and a steady stream of incremental
  updates to programs already in the pipeline.


**Apple Releases iDVD 2** -- Apple is now shipping iDVD 2, a Mac
  OS X-only update to its software for easily creating and burning
  DVDs in a SuperDrive-equipped Mac. Previewed at Macworld Expo New
  York 2001, the new version adds motion menus (full-motion menus
  and buttons), more themes, a new interface, and the capability to
  add a soundtrack to slide shows of still images. More
  significantly, iDVD 2 can store up to 90 minutes of video on a DVD
  disc (up from 60 minutes in the previous version). iDVD 2 can also
  perform MPEG compression and disc burning while in the background.
  The upgrade appears to be free, but since it is distributed on a
  DVD disc, Apple is charging a $20 shipping and handling fee. iDVD
  2 requires a Power Mac with a SuperDrive (the program does not
  appear to support external DVD burners at this time), Mac OS X
  10.1 or later, and a minimum of 256 MB RAM (384 MB recommended).
  [JLC]

<http://www.apple.com/idvd/>
<http://www.apple.com/powermac/>
<http://db.tidbits.com/getbits.acgi?tbart=06502>


**Snapz Pro X 1.0.1 Adds Features, Compatibility** -- Ambrosia
  Software has released Snapz Pro X 1.0.1, an update to their Mac OS
  X-compatible screen capture utility (see "TenBITS/03-Sep-01" in
  TidBITS-595_ for more on Snapz Pro X's new features). The new
  version incorporates numerous small changes to provide
  compatibility with Mac OS X 10.1; minor performance enhancements
  to the movie capture feature; bug fixes; and localizations in
  French, Japanese, and Italian, along with localized French and
  Japanese documentation. New features include a movie guide that
  shows you the area of the screen being recorded, a separate
  selection rectangle for movies, the capability to turn off desktop
  preview icons, and DVD capture with Nvidia graphics cards. Snapz
  Pro X 1.0.1 is a free upgrade for registered users; it's a 9.9 MB
  download. [ACE]

<http://www.ambrosiasw.com/utilities/snapzprox/>
<http://db.tidbits.com/getbits.acgi?tbart=06546>


**Timbuktu Pro 6.0.1 Mac OS X 10.1 Compatible** -- Netopia has
  released a free update to Timbuktu Pro 6.0.1 that adds no new
  features to the remote control application under Mac OS X, but
  does provide necessary compatibility with Apple's recent Mac OS X
  10.1 release (see "TenBITS/23-Apr-01" in TidBITS-577_ for more on
  what's new in the Mac OS X version of Timbuktu Pro). You'll need
  your serial number and activation key to download the update.
  [ACE]

<http://www.netopia.com/support/technotes/software/tb2mac/TPM_074.html>
<http://db.tidbits.com/getbits.acgi?tbart=06405>


How You Slice It: Two Mac-Friendly Palm Word Processors
-------------------------------------------------------
  by Derek K. Miller <dkmiller@penmachine.com>

  Word processing on a Palm OS-based handheld device seems a silly
  idea. A tiny, 160 by 160 pixel screen, limited font support, and
  no hard drive or keyboard? Processor speed and RAM put to shame by
  a Mac from 1993?

  Yet here I am, composing this article on a Palm IIIxe - and not
  just to prove a point. Even compared to a state-of-the-small
  laptop like an iBook, a Palm device is more convenient to carry.
  It's silent and works for weeks on a single set of batteries.
  Backups are automatic with every HotSync. It's easy to use nearly
  anywhere - I wrote this article while sitting on the couch next to
  my sleeping daughter and edited it while waiting for her to get a
  haircut the next day.

  With a folding keyboard such as the Palm Portable keyboard, I can
  carry my electronic writing tool kit in a pocket or two, so I'm
  more likely to have it with me. The Palm's limited hardware also
  forces programmers to think hard about which features are
  necessary and which are fluff.

<http://www.palm.com/products/accessories/peripherals/>

  So when I went searching for a word processing application for my
  Palm, the options included two well-crafted packages: DataViz's
  Word To Go 4.001 (part of the Documents To Go suite) and Blue
  Nomad's WordSmith 2.01.

<http://www.dataviz.com/products/documentstogo/>
<http://www.bluenomad.com/

  Each offers a good set of composition and editing features,
  Macintosh synchronization, and little else to get in the way. But
  the two programs, while superficially similar, follow different
  philosophies. Which is best depends on what you need to do.


**The Tool versus the Knife** -- Many a computer geek has a belt
  clip that carries a Leatherman multi-tool - blades, screwdrivers,
  files, pliers, and other gadgets ready to pivot into use at any
  moment. None of these tools is as good as its stand-alone
  equivalent, but few people keep a toolbox handy all day. The
  multi-tool's value is that it does the job admirably when it's all
  you have.

<http://www.leatherman.com/>

  Professional chefs, on the other hand, sometimes carry a single
  Henckels knife from job to job. That knife will not tighten a
  screw, file a fingernail, or turn a bolt, but it's no compromise -
  it is the best possible handheld implement for the many things a
  chef needs to cut.

<http://www.zwilling.com/>

  Among Palm word processors, Word To Go is a Leatherman tool, while
  WordSmith is a Henckels knife. If you work with a variety of
  documents mostly on your desktop computer and need to put them on
  your Palm for light editing or inspection, flip out Word To Go's
  workmanlike cutter. If you plan on doing serious writing work on
  the road, WordSmith's finely honed blade will be more your style.


**On the Palm: Simplicity and Nuance** -- At first, Word To Go and
  WordSmith looked almost the same to me: a sparse on-screen editing
  area with minimalist toolbars, a scroll bar, and a title tab. Each
  lets me select, copy, paste, italicize, boldface, indent, and
  otherwise format my text. Both programs support bookmarks, colored
  text (on color handhelds), and external keyboards. Each preserves
  some formatting elements from Mac documents and discards or hides
  others. Both offer fully functional downloadable trial versions.
  Oddly, neither program understands HTML or checks spelling (though
  Blue Nomad is working on a spell checker).

  As I worked, WordSmith stood out. First, I noticed that it had
  four full menus, compared to Word To Go's sparse two. WordSmith
  can search and replace, while Word To Go can only search. You can
  hide WordSmith's toolbars, making up to 15 lines of text visible.
  It can replace the Palm's built-in Memo Pad, and can read and
  write standard Palm DOC files.

  WordSmith's toolbars have more features but take up less space.
  Its document navigation, paragraph formatting, outlining, and font
  control are much more powerful, and it has 10 separate clipboards
  to hold text for pasting. If you have a keyboard, the Palm stylus
  is hardly necessary. But if a keyboard isn't handy, WordSmith
  includes a number of simple, time-saving stylus shortcuts.

  Blue Nomad has made even the small things slightly better. For
  instance, superscripts and subscripts are visible onscreen, and
  WordSmith displays the document name in the title tab, while Word
  To Go shows only its own name.

  Word To Go isn't a lightweight, however. Its basic typing,
  editing, and formatting tools are good. It permits some editing of
  tables and lets you save documents or the application itself to
  SD/MMC memory cards, where WordSmith doesn't. I found that its
  scroll bar works better. And most significantly, Word To Go is
  part of a suite that includes a spreadsheet program and (as a free
  add-on) a PDF reader.


**On the Mac: Choices Are Good** -- Palm OS handhelds are
  irrevocably wedded to their desktop cradles - they are "connected
  organizers," after all. And it is on the desktop where Word To Go
  outshines WordSmith.

  Both DataViz and Blue Nomad are established companies, but DataViz
  has been making Macintosh software far longer. It shows. Documents
  To Go includes an installer, while you must expand and install the
  WordSmith files manually on your Mac and Palm. DataViz's long
  experience with its MacLinkPlus conversion utility means that Word
  To Go reads and writes several generations of Microsoft Word
  formats, as well as AppleWorks and ClarisWorks, plain text, and
  Palm DOC files.

  Other components of the full Documents To Go package handle a
  variety of spreadsheet types and even convert Acrobat PDFs for
  handheld reading. I half-expected integration with MacLinkPlus on
  my computer, but it wasn't there; Documents To Go uses its own
  internal conversion engine.

  The Macintosh synchronization program for Documents To Go closely
  resembles MacLinkPlus's as well. It is a much more Mac-like
  application than WordSmith's minimalist dialog box, which seems a
  basic port from Windows. Although both packages support dragging
  and dropping files, Documents To Go also provides a full
  complement of menus and buttons to control how synchronization
  works. It includes such niceties as a contextual menu plug-in,
  too.

  WordSmith, on the other hand, imports and exports only one type of
  formatted text from your Mac: Rich Text Format (RTF). RTF is a
  wise choice, since nearly every Mac word processor, from Microsoft
  Word to AppleWorks to Nisus Writer, can save to RTF. (Strangely,
  RTF is the only major format Word To Go does _not_ support.)

  Unfortunately, you cannot move a plain text Mac document to your
  Palm with the WordSmith synchronization conduit - you must either
  convert it to the Palm DOC format with another utility (such as
  Sync Buddy or MakeDocDD), add it to the Palm Desktop application
  as a memo, or save it as RTF from your word processor first. Those
  like me who like to write in BBEdit or another text editor on our
  Macs would appreciate if Blue Nomad could save us the extra steps.

<http://perso.wanadoo.fr/fpillet/syncbuddyGB.html>
<http://www.aportis.com/resources/AportisDoc/makedocutilities.html>

  Blue Nomad, formerly known as BackupBuddy Software, is best known
  for its BackupBuddy Palm utility. Backup remains one of
  WordSmith's strengths. For example, if both the Palm and Mac
  versions of a document have changed since the last
  synchronization, the Palm version takes precedence - but the Mac
  version is also automatically backed up.

  Both packages include a few features that don't appear on the Mac
  side. Luckily, none of these Windows-only features are essential
  and both programs remain strong without them.

  Blue Nomad says that they will release a Mac OS X version of
  WordSmith once Palm, Inc. makes native Mac OS X conduits available
  - sometime this fall, perhaps. DataViz, which has already released
  a Mac OS X version of MacLinkPlus, is likely to do the same.


**How Will You Slice It?** If you need to import a variety of
  files into your Palm - whether from Word, AppleWorks, a text
  editor, Excel, or Acrobat - and if you don't need to change them
  extensively there, Word To Go is one of a broad array of
  serviceable tools to keep the basics of your office suite in your
  pocket. Your inner multi-tool geek will applaud how much you can
  do.

  If you'd rather satisfy the discerning palate of your inner word
  chef, though, then you need a less versatile but more refined
  instrument - a real handheld word processor with which you can
  write every day. If you can live with more rudimentary RTF-only
  file conversion and a Mac experience with more rough edges, then
  look at WordSmith. Over time you'll appreciate its finesse in the
  Palm environment. Maybe Blue Nomad can put similar effort into
  addressing some of WordSmith's desktop shortcomings.

  Word To Go requires a Power Mac with Mac OS 8.1 or higher, a
  handheld with Palm OS 3.0 or higher, 32 MB of RAM and 20 MB of
  disk space on the Mac, and 330K of memory (plus room for
  documents) on the Palm. It is part of the $70 Documents To Go
  suite; a 30-day, 4 MB trial download available. The Add-On Pack,
  which includes the PDF viewer, is currently free, though it
  usually costs an extra $20. There is extensive Mac HTML help but
  no full manual.

  WordSmith requires a Power Mac with Mac OS 8.1 or higher (Mac OS 9
  recommended) and 450K (plus document space) available on a Palm OS
  handheld. It costs $30 as a 1.3 MB download. The trial version is
  limited to 100 editing sessions before it will no longer
  synchronize, and 200 before rich text editing stops working
  altogether, but it continues to read DOC and Memo Pad files
  indefinitely. The electronic manual is quite complete, but too
  large to import onto most Palm OS devices. Handmark's WordSmithPro
  is a retail version of the same product.

  [Derek K. Miller is a homemaker, writer, editor, Web guy, and
  drummer based in Vancouver, Canada. He carries his Palm IIIxe and
  Leatherman Wave almost everywhere, but his Henckels knives stay at
  home. He tries to keep his weblog interesting.]

<http://www.penmachine.com/>


Worthy Web Sites: Get Your Kicks with Netflix
---------------------------------------------
  by Alex Hoffman <ahoffman@mac.com>

  Despite billions of dollars, tons of hype, and even a number of
  very happy customers, Internet grocery shopping has suffered
  notable business failures like Webvan and Kozmo.com (see the
  "Groceries in Our Midst" series of articles). However, this does
  not mean that old ways of doing errands cannot be replaced by more
  convenient services using technology and the Web. My favorite
  example is Netflix.

<http://www.netflix.com/>
<http://db.tidbits.com/getbits.acgi?tbser=1184>

  Netflix is a cross between the Internet Movie Database, Amazon,
  and Blockbuster, enabling you to rent and return DVD-based movies
  without leaving your home. It truly has replaced a brick-and-
  mortar store with a fully functional Web site for me and 300,000
  other users.

<http://www.imdb.com/>
<http://www.amazon.com/>
<http://www.blockbuster.com/>

  Video rental stores, exemplified by Blockbuster and all of its
  competitors, suffer from the same problems. By the time I get to
  the store, the movies I want to see are already rented, especially
  on weekends. If I do find a movie to rent, I'm allowed to keep the
  movie only for a few days, meaning that I have to watch it almost
  immediately. I also need to return the movie promptly or suffer a
  significant penalty that can double the cost of the rental. These
  limitations would be more tolerable if only the video stores
  weren't so limited in the movies that they carry. Sure, the big
  chains stock the latest hits, and the local shops often carry
  specialties, but none of them offer the universal selection to
  which buying movies from Amazon has made me accustomed.

  Netflix addresses all of these problems, and introduces only a
  couple of small hiccups in the process.


**Receiving and Returning Movies** -- The basic idea behind
  Netflix is that you select movies on the Web and Netflix mails you
  the DVDs via first class mail in an envelope slightly larger than
  the disc (sans packaging). (This approach wouldn't work with
  videotapes, because DVD discs can be mailed at letter rates rather
  than package rates.) After you watch the movie, simply drop it in
  the mail using the same envelope, which already includes postage.
  Each time you return a movie, Netflix sends you another. There is
  no need to go to the store to pick up or return the movies, and
  best of all, you can keep a DVD for as long as you want - there
  are no late fees.

  This stream of DVDs is made possible by setting up a queue of
  movies you want to watch at the Netflix Web site. You can add and
  remove movies from your queue, and you can change the order of
  movies to determine the order in which the DVDs are sent. When
  Netflix receives the last movie you returned, it sends out the
  next available movie on your list, and notifies you by email. My
  queue currently lists 61 movies, some which are still in theaters.

  Netflix does not charge for each rental, relying instead on a
  monthly membership fee that corresponds to the number of movies
  you can have at a time. The Standard fee of $20 per month gives
  you three movies at once, though this does not mean you are
  limited to three rentals a month. At this level, you could easily
  watch eight or nine movies per month by watching and returning
  movies promptly.

  Other membership levels include Bonus (four movies for $25 per
  month), Plus (five for $30) and Ultimate (eight for $40). Economy
  service ($14 for two movies) is available as well, making it easy
  to watch a movie every weekend. With Ultimate, a committed
  videophile could see watch between 16 and 24 movies a month.


**Rows of Shelves of... Pixels** -- Netflix's delivery method is
  wonderfully centered around the customer: I need only a mailbox to
  return movies, and I get around to it when I feel like it. But a
  great delivery mechanism is only part of the Netflix appeal. For
  starters, Netflix offers a _huge_ selection, claiming to carry
  every DVD in print - 10,000 in all. That alone goes a long way
  toward eliminating the problems inherent to the brick-and-mortar
  stores.

  When you visit a physical video store, you're in permanent browse
  mode - the store employees are the closest you'll get to a search
  engine. At the Netflix Web site you can search for movies by name,
  director, and actor, in addition to a number of other options.

  As you would expect from an online storefront, the main page
  includes various listings to pique your interest. Today, for
  example, I see a Family Fun collection (The Wizard of Oz, The Iron
  Giant, Thomas and the Magic Railroad, Animal Crackers), and
  mysteries (Twilight, The Lady from Shanghai, The Astronaut's Wife,
  Cutter's Way and The Big Lebowski). There are numerous other
  groupings listed as well. There are also some permanent genre
  listings, such as Action & Adventure, Children & Family, Classics,
  Comedy, Drama, Foreign, Gay and Lesbian, Horror, Indie, Mature,
  Music & Concert, Romance, Sci-Fi & Fantasy, Special Interest, and
  Thrillers.

  Often more helpful are the special category and Expert listings.
  These include Academy Award-winning films, the American Film
  Institute's AFI 100 lists, and recommendations by movie critic
  Leonard Maltin and "Mr. DVD," who answers questions and points to
  relevant movies. Perhaps most interesting, however, is the Best
  Bet listing. By allowing customers to rate movies, Netflix
  recommends titles customized for your tastes. Presumably, Netflix
  is using aggregate ratings, much like Amazon's rating system. My
  Best Bets are pretty close to the mark, and the more I rate
  movies, the more accurate its recommendations appear to be.

  The end result of the Netflix selection process is that I get
  movies that I truly want to see. In video stores I would often end
  up picking up something I was only marginally interested in
  seeing, because everything that I really wanted to see was already
  rented. Netflix's queue works well because you don't have to
  remember what you wanted to rent - it's all saved online. Whenever
  you think of a movie you've wanted to watch (I've been meaning to
  see Seven Samurai, for example), you can add it. I've found myself
  watching older movies through Netflix more than I ever did through
  Blockbuster. This has often resulted in better choices than those
  offered by more recent releases.


**Why I'll Never Go Back to Blockbuster** -- Because I don't have
  to return movies immediately, I always have a few on hand. I try
  to set up my queue with a variety of different types of movies, so
  that I can watch films that suit my mood. For example, I wasn't in
  the mood to view Sophie's Choice for months after I received it,
  but I watched Planet of the Apes immediately after it arrived.
  There's no need to return movies in order they arrived. This sort
  of scheduling just isn't possible with conventional rentals.

  And DVDs are just cooler than videotapes. It's not just the
  quality - DVDs now regularly include special features such as
  scenes that didn't make it into the theatrical release, directors'
  and actors' commentaries, and "making of" documentaries. Because I
  can keep the movie as long as I want, there's time to watch those
  special additions. Netflix is also great for watching DVDs
  containing several episodes of television shows that aren't
  available to everyone, such as HBO's The Sopranos. And, anyone who
  has small children (who often want to watch the same movie every
  day for a week) will find the "no due date" policy a godsend.


**Quibbles & Customer Service** -- Netflix really is as good as it
  sounds, though there are a couple of minor weaknesses. You're
  never completely guaranteed to receive the first choice of movies
  in your queue. If it's out of stock for a month (Netflix may have
  a huge selection and 2.5 million discs in stock, but they still
  have only a finite number of copies of each movie), then you wait
  a month. Of course, movies that I _must_ see, I see in theaters.
  If I can't wait to see it again, I generally want to own it
  anyway. However, to be fair, local rental shops can't guarantee
  you'll get your first choice either.

  And there are certain problems which cannot be avoided in this
  model. Netflix simply can't provide instant gratification (so you
  may still find yourself in a local store for the spur of the
  moment movie rental). Using Netflix doesn't support local
  businesses. You can't engage a clerk in a conversation about your
  movie choices. You can't get a soda and bag of microwave popcorn
  delivered with your movie. Compared to the convenience offered by
  Netflix, however, these issues don't bother me at all.

  The real challenge Netflix faces is that even loyal customers
  sometimes find their use of the service waning after a few years.
  There are only so many movies that most people want to see, and
  after catching up on all those old movies, the crop of worthwhile
  new ones may not be sufficient to keep customers interested
  permanently. But for anyone starting now, that isn't likely to be
  an issue for several years, and there's no telling how Netflix
  will have evolved to address the problem by then.

  I've had very few problems with Netflix. If you have not heard
  from them within four days after mailing a movie back, you can
  notify them from the Web site that you already shipped it back,
  and they will send you your next movie. The same goes if a movie
  never arrives. Also, with so much use, it's inevitable that some
  discs may arrive scratched. The one time I received a damaged
  disc, it was easily reported on their Web site. In all these
  cases, Netflix sends you a replacement at no additional charge.

  In fact, the service is so straightforward, and solutions for the
  few potential problems already in place, that I have never felt
  that I needed (or even wanted) to call to speak to someone. Their
  Web site takes care of it all, something I've never said of any
  other service or store.


**All Tomorrow's Movies** -- These days, every dot-com business
  has to show people that they can continue to make money in this
  economy. Netflix, however, has not made the mistakes of so many
  other Internet businesses. They offer a service for which people
  were already willing to pay (movie rentals); they have real
  revenues (an annual rate of about $70 million); and the service is
  extraordinarily easy to use. Although the privately held Netflix
  doesn't report earnings, Netflix CEO Reed Hastings has predicted
  the company will break even in the first quarter of 2002.

  What makes Netflix interesting is the way they've fabricated an
  essentially low tech service (mailing envelopes through the U.S.
  Postal Service) from the high-tech cloth of cutting edge DVD movie
  distribution media and a well-designed Web site. The quality of
  DVDs can be better than you'll see in a movie theater after a few
  hundred screenings, and the bonus material is often well worth
  investigating. But as long as DVDs were firmly ensconced in the
  Blockbusters of the world, they were essentially just souped-up
  videotapes held back by the distribution techniques of the 1980s.
  Netflix gives DVDs their due by taking movie distribution to a new
  level, where a movie you want to see is pretty much always
  available. Perhaps we'll have high-quality video-on-demand in a
  few years, and I wouldn't be surprised to see Netflix in that
  business as well, but until then, I'll be checking my mailbox for
  all the latest releases.

  [Alexander Hoffman refuses to spend his own money on the very
  machines he makes a living supporting. Recently, he and his soon-
  to-be wife have been watching his TiVo and Netflix fight it out
  for their affections. ("Kids, you stop that right now!")]



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