Six Questions: Thomas Ashley, FlixFling.com CEO

6 Sep, 2011 By: Erik Gruenwedel

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In the rapidly expanding movie rental space via social media, FlixFling.com quietly has been offering more
than 3,000 independent movies through Facebook and portable media devices for more than a year.

Home entertainment studios increasingly believe movie rentals and sellthrough can be promoted and
influenced through social media. Specifically, word-of-mouth on a movie via chat rooms, blogs and email
threads are seen as possibly influencing a title’s performance at retail.

FlixFling.com offers both subscription ($7.99 monthly) and a la carte pricing, with rentals starting at $1.99
and purchases at $6.99. FlixFling rentals can be accessed via its proprietary website, Roku media players, Facebook, Twitter and an app on iTunes. The service also offers new-release titles on street date at a premium price.

Home Media Magazine caught up with FlixFling CEO Thomas Ashley to find out why social media has
become the “conduit du jour” for studios and content owners.

■ How important is Facebook or Google to digital movie rentals compared with VOD on cable, satellite
TV or FlixFling?

Thomas Ashley: Facebook integration of the FlixFling service was an integral part of our development
strategy since day one. VOD delivery on social networking sites has a unique advantage over cable and
other more traditional services simply because you have direct access to fans of specific titles through
fan pages, groups, etc. … not to mention the almost instant viral effect a user has when they find and
share a movie they enjoy. Social networks like Google and Facebook are designed to be the very best
recommendation systems, and integration of online streaming services such as FlixFling are a natural.

■ Can transactional VOD compete against SVOD, such as that offered by Netflix?

Ashley: With FlixFling the user has the option to choose the payment option that best suits the way they
watch movies. One of the biggest complaints we heard from some Netflix users was that they only use the service once in a while, yet they continue to pay their monthly subscription fee regularly.

■ How does FlixFling compete with such services as Netflix?

Ashley: FlixFling has a few distinct advantages. We offer both transactional VOD and SVOD and have
a growing catalog of more than 3,000 titles. Our subscribers have the option to watch new releases as
premium content, without a 28-day delay. And for users who will only use our service once in a while they can choose a pay-as-you-go option.

■ Is price or content paramount to digital consumers? Netflix customers have a history of favoring
catalog over new release for disc rental. Does that work online?

Ashley: Content has always been king, and I don’t see that changing any time soon. Pricing will remain
competitive, but ultimately what drives consumers is having the content they want. In the case of Netflix, the sheer size and depth of their catalog for both digital and disc affords them the ability to favor catalog titles over new releases. Consumers looking for content in the digital space don’t expect to have to wait, so they will go with the service that has the content they want at the best price.

■ How does FlixFling compete in a competitive market dominated by ecommerce behemoths such as
Amazon and Google?

Ashley: It comes down to differentiating your content. Most service providers have similar offerings from
both a price and content standpoint. One of our strategies is to look for opportunities to offer our customers exclusive original content, while providing a solid base of new-release and catalog titles that won’t be found on every other service. Another aspect is our technology. FlixFling uses a digital locker, so purchases made on our system are stored for our customers indefinitely. This is a first in the industry.

■ Would you consider partnering with Redbox for a combined digital strategy?

Ashley: Certainly. We have already entertained a number a similar partnerships.

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