One of the biggest beefs most folks have with NetFlix as an alternative to traditional forms of livingroom-based entertainment is that their on-demand selection is somewhat limited in nature (actually, recent Mashable commenter “Cody” remarked that “the online/stream selection was just plain miserable…”).

Miserable might be an overstatement, but unfortunately dated and small is fairly accurate.  Their collection of on demand movies and TV series is limited to 10,000 titles, many of them B-Rated movies or flicks you’ve likely seen a few times already. Still, the on-demand service combined with the convenience of the Roku box is something I’ve salivated over quite a bit, both over the coolness factor and the promise of what it could mean for the future of online video.

NetFlix has their hands in other honey-pots as well, though they seem to be in the process of extricating themselves from some of these side-ventures.  One such venture is Red Envelope Entertainment, the documentary investment arm of NetFlix responsible for such blockbusters as Small Town Gay Bar, Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders, and Running with Arnold.

While those were the most absurd titles I could find in the 100 film line-up of Red Envelope, the documentary investment arm of the company did surprisingly well, with Piper Jaffrey analysts estimating gross revenues around $10-30 million.

Chris Albrecht today says today over at NewTeeVee that NetFlix was right to ditch their attempt at running a studio.  From a business perspective, this may or may not be true, but for the reasons he gives it just doesn’t scan for me:

Netflix doesn’t need to be in the business of finding little films that could. Yes, it was great that it funded documentaries, but the movie rental company has much bigger fish to fry, and companies such as Snagfilms are stepping up to distribute documentaries.

Netflix’s biggest priority has to be getting more content for its online streaming services. Stacey’s predictions about the dearth of “Watch Instantly” content have come true, and after two weeks with the Netflix-streaming Roku box, I’m left to choose between watching old episodes of Buck Rogers or 100 Sailing Mistakes.

Once it has that problem licked, Netflix can then focus on its content delivery and start streaming in HD.

Aside from the glaringly obvious fact that “Watch Instantly” is far from dead, isn’t finding and creating unique content working to solve the problem of not having enough unique and interesting content on the service?

Sure, I’d love to have the online videos in HD.  Absolutely I’d love to have more mainstream movies and TV on the on-demand service quicker. Ending unique production investment seems counter to Chris’s arguments.

If I had my druthers, I’d encourage NetFlix to invest in and forge relationships even more alternative content providers.  The seeds have been sewn to take their on-demand services and throw them to the livingroom.  Garner more compelling and unique content by striking deals with episodic content producers. It’ll create incentive for Internet video producers to keep producing, and it’ll turn the uber-simple Roku device into the new cable-box.

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Brad Fitzpatrick, the founder of LiveJournal, is a Silicon Valley archetype: The brilliant engineer and troubled young man. In noisily quitting Six Apart, the San Francisco-based software company which acquired his company two years ago, one of the reasons he gave was that he was tired of working on LiveJournal. Now Sup, the Russian company acquiring LiveJournal, has asked Fitzpatrick to join an advisory board meant to protect users’ interests, and he’s gladly agreed. Why the sudden change of mind?

One explanation is simply Fitzpatrick’s fickle nature: In his brief career at Six Apart, he vacillated between wanting to retain control of LiveJournal and disclaim responsibility for it — typical if less than noble behavior for a founder after a sale.

There’s another reason for Fitzpatrick’s new interest that also has to do with his fleeting passions. Before he even knew of Sup’s interest in LiveJournal, Fitzpatrick had booked a ticket to fly to Moscow this month. Who travels to Moscow in December? Why, a young man who quickly found a Russian girlfriend to replace Leah Culver, that’s who. Now, presented with an advisory gig that gets him tax-deductible booty calls, it’s no wonder Fitzpatrick signed right up. (Photoillustration by valiskeogh from Brad’s Life)

Source:Valleywag

Through-the-mail movie rental outfit Netflix has been very aggressive in fighting Blockbuster’s competitive advances — and winning. Analytics firm Compete has a rundown of Netflix vs. Blockbuster and lists Netflix.com as having four times the visitors Blockbuster.com does. Also, Netflix’s download strategy seems to be having s