netflix.nd now they feel betrayed. >> the only way to earn back people's trust is to stay consistent, focus on the customer needs and get back to that. >> reporter: but hastings' bottom line, the communications may have been bad but the decision to split the company in two was the right one. netflix would have survived if you didn't do this split long term. >> yes, i would say we did it because we think it's a better outcome in the long term but i can't say that it would have killed us to stay as was. i this that would be overstating it. >> reporter: it's clear he's always had a clear vision where streaming would go. even in our first conversation in 2009 he made a telling remark about the name of the company he founded. >> eventually in the very long term it's unlikely that we'll be on plastic media, so we've always known that and that's why we named the company netflix and not dvd by mail. >> reporter: i want to ask you if this is the most dangerous time netflix has ever faced but i know you

revenge on netflix. our guest jeanine poggi. >> susie: and for tomorrow, a sfap shot of economic activity around the country by the beige book report. a global strategist at j.p. morgan private bank joins us to talk about the global economy and where to invest n. the money file, why reading is fundamental when it comes to our investment. it's neither snow, nor rain, nor heat, nor gloom of night that's threatening the demise of the u.s. post office. instead, it could be a lack of money. the post office is running a $9 billion annual deficit and doesn't have the $5.5 billion it must pay for retiree health benefits due september 30. the solution? postmaster general patrick donahoe wants to end saturday mail delivery, close 3,700 locations and lay off 120,000 workers. >> tom: another legal settlement involving mortgages. bond insurer m.b.i.a. and two top executives agreed to pay $68 million in cash to settle lawsuits. the cases accused them of misleading investors about exposure to risky residential mortgage

the netflix service i am gabe slate and that is coming up in my tech report. i am a face unclogger. i am a nose coach. i am a throat untickler. i am a human cough suppressant. and i am the sniffles worst nightmare. i am a target pharmacist. ask me about cold and flu remedies. honey, i can't find my internet cord. oh, i'll borrow hailey's. you're downloading movies. fast! from here? where is her cord?! we switched to at&t high speed internet and got wireless access. no more cords. wireless, okay, honestly, can i just get a cord, please? dad, the cord's invisible. [ female announcer ] call at&t today to get high speed internet for just $14.95 a month for 12 months with a 1-year price guarantee. it's the fastest internet for the price. oooh. videos online? here? how much is that? nothing. at&t high speed internet at home includes access here. our invisible cord is really long, dad. oooh. [ female announcer ] get access to the entire national at&t wi-fi hot spot network for no extra charge. so call today to get high speed internet for just $14.95 a month for 12 mo

i'm actually not a netflix users of these stories never are and i'm not subscribed to it they don't hit home as much for me as they do for everyone else on my team was outraged that netflix we know a while ago has their prices and their profits drop and so everybody who has netflix then got a letter from the c.e.o. and basically i'm going to give you three little lines from it in one he said i'm. i owe you an explanation and so i'm it's hard to write this after over ten years of mailing d.v.d.'s with pride but we think it is necessary both the quixtar and netflix teams will work hard to regain your trust we know it's not going to be overnight actions speak louder than words but words help people to understand actions and so will you let me explain a quick thing so now they're separating your services if you just want to stream stuff it's still netflix but if you still want to receive the d.v.d.'s the mail it's not called netflix anymore it's called quick because apparently i don't know they just found out if you so much more creative but it's kind of interesting you get this i messe

and i will fill you in on what you need to know about the netflix changes.ave some choices that you have to make if you're a netflix customer see you at 8:00 p.m. i am gabe slate with kron4 news. >> this is an update right now on the wild fire, you can see the location where it is burning, temperatures remain high out there today. temperatures are in the '80s and '90s off route the bay area at this particular location, 86 degrees right now. the good news to the wind is not too bad. but this is rugged terrain, so the wind direction could very very easily. now 80's and 90's pretty much everywhere except for san francisco and half moon bay. 83 in oakland, 90 it redwood city, 92 unsettles they 94 are in an valleys and as we get into tomorrow, it will cool down a little bit. good does seem pretty warm, lots of 80's and 90's out there still. staying warmth through most of the week by friday we will start to see a cool down that will last i will have more of your extended forecast coming up in just a little bit. >> as she mentioned a while fire that we are covering

>>> after a nightmarish month, netflix announced a new partnership today. they're joining forces with dreamworks. the agreement will allow netflix to stream dreamworks movies and tv specials beginning in 2013. the financial detail haven't been released yet. in the past couple months, netflix stock has taken a beating on wall street after changing its price structure. but today netflix shares rose about 1%. >>> amazon signed a deal to stream fox movies and chlt v shows to its premium shopping members. the deal adds 11,000 videos to the list of movies amazon is already streaming. blockbuster is also hoping to stay viable. they have a combo dvd and streaming deal it for about ten bucks a month which is the price netflix charged before the price hike that frustrated many of its customers. >>> when prince william walked down the aisle, very few knew the identity of his stylist. the bright red coat he wore, the uniform of the irish guards, was a ultimatum given by his grand mother. william had a wide choice of wedding outfits, but he cooperate dissuade the queen.

is a netflix dvd pouch.early on the ceo understood that consumers wanted convened so he set up this mail order subscription. and when computer tablets exploded on to the scene netflix move to field training they always seem to be one step ahead of the curve. but this summer in july then out say big price hike. those that when it unlimited streaming and dvd by mill would have to pay an additional $6 per month. in some cases that was a high of 60%. and in september stars announced that it ended its renal talk it would pull its tv show of disney and the early movies early next year. at the time this finish and i have that much of an impact on their business. >> it is less than 10 percent are content, it is something but not a huge deal. we're back to were sent to replace the content by next march when the star is content goes off few years >> customers did not disagree--agree. netflix says that they plan and ending with 1 million fewer viewers than they had last year. >> they are facing a marketplace where they

netflix sees streaming as the future. that's what they want to do. they want to kill off the dvd service and this is the first step towards that. gabe slate, kron 4 news. so...what do you think? i'm not crazy about these light fixtures. kitchen's too small. what's next? 607 franklin st. ♪ sea bass... ♪ ooohhh! ♪ i like it. yeah, i love the kitchen. [ male announcer ] the epa-esmated 42 mpg highway chevy cruze eco. perfect for finding your way home. . >>> all right. good evening, everybody. the giants creep closer to a playoff spot with the help of florida tonight. atlanta the wildcard leader is up 5-4 in the 9th and he lost a ground ball in the lights. chipper jones with two outs boom! there it goes. chipper jones had he not lost the ball, picks it up, game is over. but that it s followed with a homer. giants trail by 3 and a half games. third is st. louis, trails by 2 and a half as st. louis wins tonight. the giants trail the diamondbacks. giants will be at dodger stadium tomorrow night with pablo sandoval. we have history. mariano rivera became the

and for years, millions of americans have chosen netflix as the way they see feature films. they have become a loyal customer base, a big one, until netflix decided to charge a lot more. and as one headline writer on the web put it recently, "netflix is getting slaughtered by its own price hike." they have lost an estimated 1 million customers and in light of the big hit the business is taking, today the ceo of netflix, reed hastings came out with a rare mea culpa in a long blog post accompanied by a youtube video. in the blog post, he said, i messed up, adding that the company rushed the process of splitting up the dvd rental and the movie streaming service which he said was partly due to arrogance. >>> the cartoonist tom wilson has died. he's best known as being the father of ziggy. he drew over 1,200 cartoons, carried in 500 newspapers, seen by 40 million americans. wilson made ziggy a modest and kind figure and he also gave dogs the loving voice we all knew they had. tom wilson was 80 years old. >>> dolores hope has died. the wife of the late, great entertainer bob hope.

the big mea culpa from netflix ceo reed hastings and if you're a netflix subscriber and if you haven'tt this morning, you will see the big apology and admits the company screwed up when it made the plan to switch the pricing on the dvd streaming combo business raising it by 60%. and that resulted in a loss of a million subscribers in the current quarter and now netflix will split the business an the dvd business will be separate from the streaming business and streaming will be netflix and then dvd only business will be taken to a different page to make the selection. no pricing change coming from netflix in this. it says it has no plan to do so any time soon. hastings says they will beef up the streaming only library which is much smaller compared to the dvd business. the netflix shares are rebounding on that news. they're up about 2% this morning. and investors are very upset with netflix last week. but it said it lost so many subscribers, more than 20% of the stock value in just two days. >>> stock market itself is falling. after what was a very strong week last week. and much of th

now a new nightmare for netflix.ompetition just announced. >> one company, one bill, one connection for everything you need in video entertainment. >> it's called the blockbuster movie pass and for dish network subscribers, it gives access to video titles, available by mail, in store, or streaming online. >> what a great brand name to complete with the names of amazon, red box, and quicster. >> and speaking of the competition, the timing of this announcement at a san francisco press event arrives on the heels of more bad news for netflix. lost 1 million customers after a price hike over the summer, a broken partnership with stars network and recent news of the split between their mail in and streaming services. >> that's going on at the same time as we are launching. >> there's an old saying that sometimes no amount of planning can replace good old luck. we'll take luck, too. >> while this blockbuster movie pass will complete with netflix and others, it does have draw backs. >> if you already have a cable provider li

netflix still dropping today.he share price was close to $300 in the wake of that hike price and a split between netflix stock has lost more than half of its value, leaving the company trying to explain while its competition tries to gain ground. >> they stream your movies on laptops, on your mobile home. and on your tablet. but this is not that well known video streamer. this is a palo alto start hch up getting the chance to shine as the next flix struggles. >> we have noticed that in the past two to three months there is traffic that. >> the decision to raise prices and than split into a video streamer and dvd mail by company is confusing to both its customers and investors and they know it. >> we did not communicate well this dramatic change for some netflix members. both will have two accounts, one with qwikster and one with netflix. >> reporter: smaller competitors like m-spot want to let people know that there's an alternative, in this case, an all-streaming service that let's you take new releases on the go

netflix tells you exactly. >> good point. the qwikster website is expected to be up and running within the next couple of weeks. >>> one company is hoping to capitalize on netflix's negative feet back. blockbuster hoping to make an announcement friday about its video streaming service. it's now owned by dish network. the company is expected to unveil a service similar to netflix's flat fee streaming service. initially it will be for dish network customers and they hope to make it universal. >> qwikster, napster. hard to keep up. >>> 5:26. this morning, new evidence linking diabetes and memory problems. >>> and it's a so-called bart blacklist. the agency's plan to fight off protestors and how it may backfire. toad a body found over the weekend is confirmed to be that of michelle le. the latest in the investigation plus how this impacts the case against the woman accused of killing her. coming up. story after years of debate and controversy, "don't ask, don't tell" has finally ended. today is the first day that gays and lesbian

. >>> more drama for national hockey -- net 96 -- netflix. and the giants take on the padres, in sports. @ the bay area -- a place with natural beauty and a forward thinking spirit. at bank of america, we've been fueling economic growth here for over a century. today we're investing in innovations that will define our future. every day, we're working to help set opportunity in motion. from financing a solar project for the milpitas school district to funding the institute at golden gate. because when you're giving, lending, and investing in more communities across the country, more opportunities happen. ♪ [ male announcer ] the fuel-efficient 2011 volkswagen jetta. includes scheduled carefree maintenance and it's an iihs top safety pick. experience premium style and best-in-class rear legroom. surprisingly priced at $16,495. that's the power of german engineering. right now lease a 2011 jetta s for just $179 a month. visit vwdealer.com today. >>> now time for the kron 4 tech report with gabe slate. >> reporter: netflix, streaming customers sa

starz was one of the early signers with netflix three years ago and gave netflix its big push. it also came on the day that netflix began its new subscription rates where you'll be paying more for the dvd plus streaming plan. it was a $6 increase. netflix shares getting hit hard over that move. let's look at the numbers. netflix shares are dropping by about 9%. that's $20. overall the numbers are ugly. dow lower by 214 points. nasdaq is falling by 46. the s&p down by 23. and you just talked about gas prices. oil pulling back with a weak jobs report. about $2 a barrel. that could bring a little bit of relief at the pumps in the next few days. >> the good news is the markets closed on monday, right? >> that's right. we've got a long weekend. whatever happens today won't get extended to monday. we'll have to wait till tuesday. a way to look at the bright side. >> enjoy your labor day weekend as always. >> you too. >> jason brooks from kcbs radio. thanks. >>> the federal government is going to court against some of the world's major banks. this an effort to get billions of dollars.

. >>> customers at netflix are not happy with a new service and pricing change. now a new nightmare for netflix, this was just announced. >> reporter: one company, one bill, one connection for everything you need in video entertainment. >> it's called the blockbuster movie pass and it gives access to 100,000 movie, television, and video titles, available by mail, in video, or streaming on line. >> reporter: it competes with the likes of amazon, houlu. >> in this changing market environment. >> speaking of the competition, the timing of this announcement at a san fransisco press event arrives on the heels of more bad news for netflix. today, net nix was lost 1 million customers after a price like over the summer. a broken partnership with stars network and recent news of the split between their mail-in and streaming services. >> i think it's a bit of sarn dependity that that's going on at the time we're launching. >> no amount of planning can replace good old luck so we'll take luck, too. >> while this blockbuster movie pass will compete with netflix and others it

. >>> netflix is just a name.hat the company is calling itself these days. >>> amusement by the 49ers oap t america, coming up next. ♪ [ ukulele strumming ] ♪ [ folksy whistling ] [ man ] quitting is a fight you can't let yourself lose. it can take many tries. but keep trying, you will beat smoking. honey, you okay? yeah, i'm fine. ♪ [ ukulele ] >>> welcome back, everybody. based on what christina loren tells us, i'm glad to be here in the ac. that's downtown san hez a, pushing up to 90 degrees today. enjoy. >>> new stadium for the 49ers just cleared a major hurdle. investment firm has agreed to purchase the great america amusement park and the 49ers are part oft that venture. the park sits on 100 acres near great america oparkway where n bay area damien trujillo joins us. >> reporter: they are partnering with what they call an entity of the san francisco 49ers. great news for the team. the company out of ohio owns great america. they've been fighting with the city and the 49ers over the proposal for a new stadium

streaming business will continue to be called netflix.ail order machine will be renamed quick surf to get dvd by mail subject sciners need to go to sprt web site. members whether subscribed to both service have two entry on the credit card payment and pay 60 percent more for the service. this announcement by netflix gets criticism on the face become page. they lost 1 million subscriptions because they raised the price. big mistake. but dale says he's keeping both services from netflix. you can join the conversation at facebook.com slash abc 7 news. >>> woman from santa clara who was tonight's winner on wheel of important tune is sharing her good fortune. she decided to did nature the 5000 $in cash she one to hands of hope. that charity helps orphanage in africa. she held a watch party to help raise even more money for the cause. >> it all happened so fast that it was very, i really didn't have time to get nervous about it. they made it very fun. and it was an absolute blast. salute blast. i'm really exited can't immanuel doing anything we

netflix has had an incredible run of bad news.f you invested in netflix a few months ago, you'd have half as much money now. >>> and europe has this big plan to prevent countries from defaulting on debt. the countries in the european union have to vote yes or ya or si for this to work. this morning, jaerp which has the most to lose voted yes, lending hundreds of billions of euros after its prime minister angela merkel pushed it through. this money will be available to all countries except greece which has its own bailout plan. >>> added to that fewer people applied for first time jobless claims. new information showing the economy grew faster than expected and accept for netflix, pretty good day. back to you. >> scott, thank you very much. this one is a cool and interesting story. a historic construction project under way in the bay area and guess what, you'll probably never notice it's happening. >> bobry del explains from menlo park. >> if you live in north san jose up and down the peninsula in san francisco, your water travels

netflix is enormous. if you put money in netflix last year so your kids could go to college, you now have half as much money. ♪ come on baby let's do the twist ♪ >> what does chubby checker have to do with the economy? the open markets will consider something called the twist today, changing the feds focus of lowering short-term interest rates to lowering long-term interest rates. it's much more exciting when you call it the twist than when you call it that, isn't it? the last time such an action was considered was when chubby checker was topping the charts with that song, so the term stuck. now topping the chart is "moves like jagger" and doesn't have the same punch. >> analysts are saying about the changes of the new ipad at the end of the year. got ahold that jp morgan reportedly wrote saying there's no rush, because there's no real competition out there against the ipad. the blog also points out the ipad is selling -- ipad 2 is selling so well, there's no need to roll out a new model any time soon. >>

they split off to netflix and quickster and they don't even own the twitter handle quickster.kid that is posting on twitter. the quickster people will use that and you have to switch the change of address forms for both if you use both. it's really confusing. >> the stock price fell 40%. do you think this is the proper way to realign over something confusioning and jen, they kept the price hike. >> calling a spat a spade, they are treading water and trying to stay in good faith with customers. one of the things we think might be happening is if you lower the amount of people who are using your streepiaming plan, if i am sony and i sell the videos for 30 million people, it will be a lot more expensive than for five million people. hopefully they can spit off the people who are just doing dvds and keep the streaming population not paying too much more. >> they are treading water because there was so much fanfare at one point. >> they are in a bad way. >> thank you very much for breaking it down. >>> alex baldwin was a no show because one of his jokes got pulled? he has that's no

. >>> netflix loses a huge piece of its video library. the deal that unraveled, that's coming up. >> why people can smoke pot legally right outside a bay area city hall this weekend. coming up. >>> not smoking pot, make smoking hot in some parts of the bay area today. we'll see some toasty temperatures inland up into the 90s in the valleys. beautiful sunshine and 73 degrees in san francisco. more on your holiday forecast coming up. ,, ,,,,,,,,,,,,,, ♪ mmm. oh gosh. oh dear. big deal. you're delicious. so what. i've got news for you. there's no such thing... ...as a bear sheriff. you think i'm afraid of you? hey what? you don't have to be mean to the cake. i do. you don't. i do. just eat yoplait light. they have great flavors like... boston cream pie, raspberry cheesecake. even though i work here, i've lost weight. wow. yeah. carry on. (announcer) 28 delicious flavors at around 100 calories each. discovered nine birds infected with west nile virus. the county had four people infected >>> in the headlines, contra costa county has discovered

plus netflix and dream work is striking a deal.it means for customers and you are seeing images inside the washington monument for the first time. what they show when it comes to the earthquake on the east coast last month. -dad, why are you getting that? -that's my cereal. is there a prize in there? oh, there's a prize, all right. is it a robot? no. is it a jet plane? nope. is it a dinosaur? [ laughs ] [ male announcer ] inside every box of heart healthy cheerios are those great tasting little o's made from carefully selected oats that can help lower cholesterol. stickers? uh-uh. a superhero? ♪ kinda. [ male announcer ] and we think that's the best prize of all. ♪ >>> netflix and dreamworks announced a deal that will give netflix the rights to dreamworks film. netflix has angered customers with price increases. netflix beat out hbo for the contract. >>> a survey from bank rate.com says the number of free checking accounts dropped dramatically. only 45% are now free. down from 76% two years ago. banks say they have added fees becau

. >>> this is decision day for netflix customers.y tuned, ktvu's pam cook will explain this controversial price hike coming up for you at 7:45. >>> tropical storm katia has now reached hurricane strength and moving across the atlanta. this is now about 1800 miles east of the leeward islands, and headed towards florida. forecasters say the wind speeds have topped 75 miles per hour. right now, it's still too early to tell if hurricane katia will threaten land. but the hurricane center of miami is warning people to be on the alert. >>> we're talking about katia, a lot of folks back east are still having to deal with irene. flood waters from irene are starting to recede. thousands of people are still homeless, and even more are still without power. reporter david lee miller is in patterson, new jersey, where president obama is expected to tour some of the worst damage. good morning, david. >> reporter: good morning. patterson is the third largest city in the state of new jersey. this is a city still reeling from the massive flooding from

chief exec of netflix says he messed up.izing on the blog for the price hike and angered so many customers. hasting says now that it's separated pricing on dvd from ricing on streaming movies, it plans to rename the dvd reason stall business quickster. at the new york stock exchange i'm jane king with bloomberg business report. >>> death toll climbed 50 people after an earthquake that rocked india. the magnitude 6.9 quake sent people rushing from their homes. wall at the british embassy compound collapsed in kathmandu. rescue workers are searching the rubble for survivors. other teams work to clear the roads blocked by mudslides in an effort to reach remote villages near the quake epicenter. >>> dominique strauss-kahn is talking publicly for the first time about the sexual assault accusations against him. the former head of the international monetary fund tells a french television station that sexual encounter with a new york hotel maid did not involve violence or aggression. strauss-kahn says he regrets the incident but cla

the biggest loser on pinnged, netflix down $33 a share. it cool down expected for today. we do a slow climb until we hit sunday. sunday, things are rocket. by the middle of next week we are in the mid 90's again. try to figure that one out. >> thank you for joining us. part to a doctor fills interview with casey anthony parents is coming up right after this break. >> announcer: all new "dr. phil" -- >> not one you of guys are doing a [bleep] thing to found my granddaughter. >> dr. phil: you don't include the possibility that she used that shovel to dig a hole in the ground in the woods to bury her dead baby. >> announc

. >>> netflix feels the fallout from its recent price hike. we'll let you know in a moment. >>> look at the wind, southwest at 25, low clouds rolling in. 59 degrees right now, with the weekend ahead, weekend ahead, we're tracking a big warmup in your seven-day brands for him. everything for the home. and get an extra 20% off all jewelry. the savings are that simple! see you early saturday. go to jcp.com to see everything on sale. we make style affordable. you make it yours. jcpenney. >>> from star wars to the real world, an out of this world discovery that turns science fiction into fact. scott bud man spent the day at nasa today. you you made some really cool discoveries? >> it is pretty cool. especially for those of us who love "star wars." a scene from a movie that more than three decades later comes true. here's how nasa chakked down a planet with two suns. a planet with two suns, surely something that could not possibly exist with one exception. >> i seem to remember seeing a place like this, about 30 years ago in a galaxy far, far away.

another flub by netflix. a first look at this morning's business headlines is next. >>> coming up, a save for the record books and hands down the best touchdown catch of the season. you're watching "first look." [ woman ] jogging stroller, you've been stuck in the garage, while i took refuge from the pollen that made me sneeze. but with 24-hour zyrtec®, i get prescription strength relief from my worst allergy symptoms. so lily and i are back on the road again. with zyrtec®, i can love the air®. is to take you from where you are... to where you need to be. and we're not just talking about points on a map. with a more intuitive delta website and mobile app... and the most wifi equipped planes. we let you be everywhere at once. innovations like these are extending our reach so you can extend yours. and now, even at 30,000 feet you can still touch the ground. prego?! but i've been buying ragu for years. [ thinking ] i wonder what other questionable choices i've made? [ '80s dance music plays ] [ sighs ] [ male an

the city must still approve the deal. >>> netflix is officially splitting into two. last night the company a announced that its dvd and streaming services will now operate as two businesses. the dvd division will be called quickster, streaming serves will keep the netflix name. many subscribers were upset when the company announced over the summer that it was splitting the two services and pricing plans. >>> doctors say this could be a tough flu season if you rely on tylenol to battle fever and aches from the flu. johnson and johnson recalled several tylenol products in the past few years causing shortages in some places. now company is offering a product locator at its web soit to help you locate the nearest stores with tylenol products in stock. >>> tonight at 5:00, it's settled, the lawsuit against the owners of the cost co- bousson for the 2007 oil spill. brad pitt is coming to the bay area tonight. we're getting in place on the red carpet' texas theater. whole bring you that live. we'll see at 5:00. thank you for watching a great day. have a great day. ♪ whatcha

. >> but the ceo of netflix is not rolling back the price hike. instead, customers will see major changes to the service. >>> i would have to do something with angelina. >> brad pitt fever hits the east bay. tonight's red carpet premier, where the big movie star is on the a. >>> temperatures running well above average today, mid-to upper 90s, clearly sunny and warm the story today but cooler changes are on the way. that's all in the forecast coming up. er again. >>> millions of americans have tattoos but many, like this bay area musician, wants to remove them. >> 10 minutes to get rid of something that takes 10 hours. >>> closed captioning for "eyewitness news" is brought to you by shreve & co. jewelers, a san francisco original. costco buy san, cost kobe san the los gatos- based business is splitting up i >>> soon customers won't get dvds in the mail from netflix ever again. the los gatos based business is splitting up into two companies. it will continue to market its online streaming services through the netflix name but its mail order dvd serv

netflix unable to reach a deal with starz. and starz will pull tv and movie content early next year. on that news, shares, falling by 9% or $20 apiece in afterhours trading. netflix says it can take the money and secure other content. while on the subjufkt tumbling stocks. rough day on wall street. investors worried about job numbers as the latest manufacturing data shows a slightly growing economy. $1.3 billion. a lot of money even for oracle, redwood city software giant had won a judgment of that size against rival sap in a copy right infringement case to. day had the judgment overturned. the judge ruling actual damages at $272 million. oracle can reappeal. >>> here, famous for looking ahead to the future of tech. but it is the past coming to a local museum devoted to technology. a past starting in the 8th century and golden age of the islamic world. it is about culture. and about the next generation. a lesson in the history of technology and the contribution of islam. >> a way of saying, and showing, look, we're reliant upo

but it won't be netflix anymore.nd why the ceo is now saying i'm sorry. [ man ] natural gas vehicles are used somewhere... but not in my neighborhood. ♪ [ female announcer ] we're throwing away misperceptions about natural gas vehicles. more of the vehicles that fuel our lives use clean american natural gas today. it costs about 40 percent less than gasoline, so why aren't we using it even more? start a conversation about using more natural gas vehicles in your community. me too. you booked our room right? not yet, thanks for reminding me. wait, what? fret not ma'lady. i have the hotels.com app so we can t a great deal even at the last minute. ah, wellyesir. dolo free hotels.com app and get exclusive mobi dls. hotels.com. be smart. book smart. sun life financialrating should be famous.d bad, we're working on it. so you're seriously proposing we change our name to sun life valley. do we still get to go skiing? sooner or later, you'll know our name. sun life financial. >>> well, the netflix saga continues. the dvd by m

. >>> a group of citizens want to hit the pause involving netflix. the group has filed a lawsuit against the town. they're calling for a fuel environmental review of a project for more office space. the group is worried about increased traffic and the uprooting of 300 trees and the impact of long-term construction on the area. >>> staying with the issue of netflix, its decision to raise prices by as much as 60% is costing lots of customers. the company says subscriber numbers are down by almost a million people. netflix stock finished down, to $169 a share. >>> the giants made news on and off the field. pablo sandoval hit for the cycle, but the big news is the shakeup in the front office. >> we claim that positive trajectory on the field and off the field. and there's nobody better able or more prepared to step in than larry and nobody more willing to step aside than me. >> he's stepping down as the general managing partner. he's going to take on a new role. but sources say he was shown the door by the executive committee. coming up in sports, you'll

netflix will continue to market its online streaming certificates to the netflix name but the mail orderervice will operate through a new web site quicksister. customers who want both services will have to have two accounts. >> a world premier at oakland's paramount theater tonight for a movie telling part of oakland sports history. brad pitt starts as billy beane in "money ball." mark? >> reporter: elizabeth of course i'm a huge fan, california native, i saw the movie at the toronto film festival for the first time 10 days ago. it's remarkable. elizabeth, i know you're a huge baseball fan, a huge oakland fan, and at the same time a huge brad pitt fan. what would you like me to ask brad pitt. >> oh, gosh. well, i want to know if angelina is going to be coming too. that's what i was thinking. >> reporter: absolutely. i would like to ask him that right now, but he is not here, he is playing the part of billy beane, the oakland a's coach. look at the media circus waiting, looking for a glimpse of angelina. she will be coming to town. brad pitt with the oakland a's in tow. and your current o

. >>> and a new challenge for netflix. details of a new service that may damage the already reeling company. we're back in a moment. >>> was it a hate crime? lapd and the fbi are investigating a case of vandalism at president obama's west coast reelection office. someone used a bb gun to shoot at the office and an object, possibly a crowbar, was apparently thrown through the window. gordon tokamatsu from our l.a. station has more. >> reporter: for a place that serves as statewide headquarters for obama for america, the location is hardly eye catching. corner of centinela and jefferson, tinted windows barely revealing campaign signs and slogans. but thursday night someone made a pretty noticeable political statement here. a door and a plate glass window blown out, even as three staffers and a volunteer worked inside. >> it's the idea of what happened, not really the severity of what happened to the building. >> reporter: the item used still a question mark tonight. this appears to have been caused by a pellet or bb gun. but

many of you in this room i'm sure use the netflix. what they did is dynamically throw what is this is as more and more people click on movies that they want to watch. so then what they are doing is as the need scales, they then have the ability -- they pay them, and, of course, it drops off as soon as the need drops off as well. so they end up essentially paying for average demand. the technology is widely deployed around the world. >> as kind of a follow-up, individuals often use cloud services for backing up their computers. are we about to see people using their computers to back up their clout services to guarantee that they hold on to their data? >> you are at the tip of a very interesting iceberg. go 100,000 miles in space and look down at the earth. we are still driving more wavelength down. there is no problem distributing content out to users. what we have a fundamental problem with is distribution of power. power is dominating in terms of distribution networks q one of the reasons why it does not make sense is because you ar

. >> and netflix is a pioneer in the dvd rental business.petition and losing customer losses could spell trouble. one >> every day millions of these go through the u.s. postal service. a burly, ceo read hastings knew that people want the convenience and a build- order convenience subscription based was set up. when tablets' exploded netflix quickly moved to straining. they always seem to be one step ahead. streaming a debt-however, netflix announced a big hike. $6 additional paramount. the 60% increase for people that wanted the e-mail subscription and also with the streaming capability. stars announced that it ended its contract pulling its programming from netflix. they should not have that much of an impact of their business. >> they are only dealing with the united states and it is less than 10 percent of our content. it is something that is not a big deal and we are actively looking to replace the starz contact with it ends on march. >> customers not agreeing. they headed for the door. netflix is going to end the quarter with modern 1 m

. >>> netflix is increasing its prices and now it's taken a hit.s amber lee live tonight in los gatos where in customers and consumers say they are not canceling their subscription just yet. >> reporter: now options are sold separately so you could be paying up to $16 a month and that is costing the company customers. not far from netflix we found subscribers who say they are staying loyal despite the price hike. >> we're able to sit there and call up the movie we want. >> it's too easy. you can watch it on your laptop, on your tv or game consoles. >> reporter: but the company is feeling its backlash of the price increase expecting it will end in september with 600,000 fewer customers than it had in june. >> look at the economy, people don't want to hear any price raising at all. they weren't real sensitive to the environment that we're all in. >> reporter: golden gate university professor kit yaro a consumer psychologist is also a netflix subscriber, she says she downgraded her service because of the price increase. she says that yaro made a bad m

. >>> netflix is increasing its prices and now it's taken a hit.amber lee live tonight in los gatos where in customers and consumers say they are not canceling their subscription just yet. >> reporter: now options are sold separately so you could be paying up to $16 a month and that is costing the company customers. not far from netflix we found subscribers who say they are staying loyal despite the price hike. >> we're able to sit there and call up the movie we want. >> it's too easy. you can watch it on your laptop, on your tv or game consoles. >> reporter: but the company is feeling its backlash of the price increase expecting it will end in september with 600,000 fewer customers than it had in june. >> look at the economy, people don't want to hear any price raising at all. they weren't real sensitive to the environment that we're all in. >> reporter: golden gate university professor kit yaro a consumer psychologist is also a netflix subscriber, she says she downgraded her service because of the price increase. she says that yaro made a bad mov

. >>> and more changes coming to netflix. why the video service is now changing its name. >>> i'm meteorologist lawrence karnow in the cbs 5 weather center. high pressure is holding on now. the summer, it is almost over. but you know what that means? you get some of the best weather of the year, you have more on that coming up. ,,,,,,,,,,,,,,,, britain has led to the arrests of seven people. west midlands ce said today... six m >>> an anti-terror operation in great britain has led to the arrest of seven people. west midland police say six people were arrested in birmingham overnight. they're all suspected of preparing or instigating an act of terror in the united kingdom. and in addition, a woman was arrested this morning. accused of failing to disclose information. >>> meanwhile, the death toll from a strong earthquake in india is now ris ton at least 50. -- risen to at least 50. the 6.9 quake happened in the north eastern part of the country yesterday. rescue workers have been pulling bodies out of the debris following the

. >>> a big mea culpa from netflix.er a customer backlash following a price hike, netflix is splitting its movie streaming business and dvd mail service. they took a big hit after prices were hiked and many customers angry enough to cancel their subscriptions. posting on the company website, the ceo of netflix said simply, quote, i messed up. i think if you lose about a million customers, you might have messed up. >> like 20%. ashley morrison in new york, appreciate it. thank you so much. >>> at the 63rd annual prime time emmys, a couple of perennial favorites. they won big. >> welcome back to the modern family awards! >> reporter: "modern family" cleaned up taking home five trophies including one for best comedy for the second year in a row. "mad men" won best drama in a fourth year in a row. a major upset. kyle chandler took home best actor for "friday night lights." even charlie sheen was on his best behavior. he took time while presenting the lead actor awards to address his former cast members from "two and a half

netflix estimated around $30 million per picture.se dreamworks movies won't be showing up until 2013 but investors like the news. netflix shares are up 4%. >>> and also, one final note. daily deal site groupon which is anticipated to have an ipo, planning on it anticipated it could be worth around $20 billion for the company. looks like it's delayed further because of recent stock market volatility. and federal regulators are using a fine-tooth comb to go through the company's paperwork to be sure everything is on the up and up, grace. >> volatility is like the word of the year. >> reporter: it is. really there is no sign that we'll see any end to it. the european debt crisis goes beyond greece. we have our own u.s. issues and debt ceiling so stock market will be nervous for some time to come. >> thank you, jason brooks with kcbs and cbsmoneywatch.com. >>> a bake sale stirs up a racial debate at cal. the bake sale plan by a republican student group intended to be a protest against affirmative action. so they had pastries in five diff

he knows full well that the future of netflix's business is in streaming not in dvds.ou know, i wouldn't want to be the guy who is running the dvd business right now because reed said basically -- >> basically is that a smart decision for him? >> to split the company? >> yes. he ha to. the licensing agreements with how hollywood deals with dvds and streaming videos is important. >> people don't care about all that. >> no. >> google wallet app allows you to have all your cards in one app? >> all those half off deals on the internet. the sprint phone will have the. you take the phone and tap it on a terminal at the merchant and it will hit your credit card it will give you your coupon, loyalty rewards, whatever. it will give google all the information what you're spending money on. so it's convenient for consumers and great for google. >> you put it on your smart phone. what happens if you lose your phone? >> the phone the -- wallet on your phone is protected by a p.i.n. number unlike, say, your real wallet which if you lose you're toast. >> lose the wallet. cnet's rafe

. >>> and a self-proclaimed pot head about to get rich off of netflix? dude! now. >>> welcome back. if it's interesting and happening now, you are about to see it. beginning in california where a millionaire is asking the state's attorney general to review the deaths of not only his girlfriend, but his son as well. detectives say she committed suicide after learning his son wasn't going to survive. the 6-year-old suffered a severe head injury after falling down the stairs in her care. he says he has no reason to doubt the outcome, but i'm quoting, speculation is causing pain for the families. he adds quote -- >>> the involuntary manslaughter trial of michael jackson's daughter is ready to go. this is after a key witness now found is reportedly ready to testify. we're talking about the pharmacist that has already testified that he shipped more than 15 liters of propofol. opening statements in that trial are scheduled to begin one week from today. >>> funeral services begin next hour for kara kennedy with a wake at a funeral home in washington. the daughter of t