Reed Hastings has thrown down the gauntlet to the gold-standard of pay-tv and on-demand as a new model emerges, largely defined by consumers.

Netflix has officially surpassed HBO in subscribers, reporting 29.17 million domestic subscribers in the first quarter of 2013, while HBO ended 2012 with 28.7 million, according to SNL Kagan. The company’s stock passed $200 a share for the first time since 2011 after reporting its quarterly earnings.

Ted Sarandos, chief content officer for Netflix told GQ that, "The goal is to become HBO faster than HBO can become us.” It looks like they're well on their way. 

Aside from subscribers and revenue, Netflix is now competing with HBO for talent and creative ideas. The streaming company recently launched a new original series, Hemlock Grove, while it's slated to capitalize on the Arrested Development series in May. "This is the direction that storytelling is evolving, where you're going to have the most interesting story lines, the most interesting characters," Kevin Spacey, star and executive producer of the Netflix original series House of Cards. "What a company like Netflix is doing is the ultimate expression of individual control, proof of what people's attention span really is." 

Of Netflix’s subscriber increase in Q1, more than two million in the US are attributed to the success of its first original series. Those who checked in to Netflix for House of Cards stayed for the most part, with fewer than 8,000 who paid the $7.99 monthly fee to watch the show choosing to cancel.Continue reading...

Just when you think the final story has been written about Netflix — the story begins again.

The high-flying video subscription service, largely credited with driving Blockbuster into bankruptcy, has had business issues of its own in the past year. Now it's looking to a new partner — cable operators — who traditionally view streaming in general, and Netflix in particular, as the enemy.Continue reading...

Sheen's Increasing Luster: Fiat USA isn't the only brand to tap Charlie Sheen for its new TV commercials. DirecTV has hired the embattled actor to star in its latest "Get rid of cable ... or you'll regret it" series of commercials, which made a splash when they debuted on Jan. 2nd during the Tournament of Roses telecast.

DirecTV's Pitch: "The spot shows what happens when your frustration with cable causes you to make unwise decisions that could lead to reenacting scenes from Platoon with Charlie in your living room."

Why Sheen?: As The Hollywood Reporter notes, "The spots are a part of Sheen's meta comeback, which has largely consisted of projects that wink — or wholeheartedly embrace — his checkered past." Sheen is slated to return to TV in June, when he will star in an FX series based on the Adam Sandler-Jack Nicholson film Anger Management, in which he'll play "an unconventional anger therapist."

Below, watch another new spot in the "Get rid of cable" campaign, which riffs on Sheen's favorite word: Winning.Continue reading...