RISCARIO INSIDER

September 25, 2010

THE RIGHT WAY TO VIEW NETFLIX IN CANADA

On weekends, we watch movies. In 2000, we got the largest HDTV that would fit down our stairs (a 56" Panasonic projection TV) and a great Yamaha/Paradigm surround sound system that still shakes the walls. The challenge is finding content. As part of a low noise life, we don't have cable or satellite. Visiting video stores is a hassle. The library has a limited selection and we never tried rental by mail.

The ideal for convenience and selection is watching streaming video through our home cinema.

We have a 25 Mbps Internet connection with a 125 GB monthly usage cap. We'd upgrade to 50 Mbps and 175 GB but Rogers refuses to take another $30 a month from us unless we get digital cable TV too. There's no technical barrier, just an arbitrary corporate "policy".

The Promise

I kept reading about Netflix which offers movie rentals by mail and streaming Internet video in the US.

Well, Netflix came to Canada this week and we subscribed the first day. For $7.99 a month, you can watch as many movies and TV episodes as you like. You can watch on different devices such as gaming consoles, computers, iPhones and even iPads. You can watch on different devices at the same time. So the solution is good for the family, except for a show stopper explained below.

The technology works surprisingly well. There are none of the buffering problems we sometimes experience with YouTube and other online video. Playback starts faster than loading a DVD. You're spared the previews that some discs force you to watch. There's no FBI warning either. The quality may seem blurry at first but quickly sharpens.

The Biggest Complaint

There's lots of choice but many omissions. You won't find new releases. In the US, you'd get them by mail since streaming is included in the DVD-rental-by-mail packages. That option isn't available in Canada. Don't count on getting all the older stuff either. You won't currently find: The Shawshank Redemption, The Sopranos, any Monty Python, What's Eating Gilbert Grape?, The Matrix series, any Get Smart, Lawrence Of Arabia, Once Upon A Time In America, What About Bob? or The Departed. Sometimes you'll find subsets of series: only Crocodile Dundee 2, only Terminator 2 and only Bad Boys 1.

However, you will find Fawlty Towers, Memento, GlenGarry Glen Ross, House of Games, Slumdog Millionaire, Frozen River, Snow Falling On Cedars, 12 Monkeys and The House Of Sand And Fog. Christopher Nolan's first film, Following, looks interesting. You can search by title, director, performer or genre. Some titles are available in HD (which doubles bandwidth consumption to 2 GB/hour).

When a selection isn't available , you're given substitutes based on your preferences. Instead of Indiana Jones And The Raiders Of The Lost Ark, you're offered Popeye with Robin Williams , the Golden Child with Eddie Murphy or The Gods Must Be Crazy 2. Isn't that bizarre? Other times the choices are more relevant.

The Right Perspective

Netflix feels like a video rental store.

There's lots of choice but don't count on finding a specific title. If you're open to exploring, you'll find a vast selection available for instant viewing. How convenient during a winter snowstorm or if you want more variety than television can provide. Plus you can watch wherever you have a fast Internet connection.

The Show Stopper

There's one major caveat if you have children. In the US, Netflix lets you setup profiles for different family members. So you can prevent your children from watching content you deem unsuitable. This option is not currently available in Canada but should be coming soon.

Customer Service

Customer service is fast and friendly. You enter a six digit code which you find at the bottom of your web pages. Afterwards, you receive a short satisfaction survey by email. You're asked about movie quality after viewing, much like Skype asks about call quality. You can leave comments on the Netflix blog. You'll find many complaints about the selection in Canada.

As with books, a title is new if you haven't seen it before.

In that sense, Netflix is convenient source of entertainment unless you insist on seeing the newest movies or specific movies. The selection is bound to improve (and is already overwhelming). The easiest way to tell is by trying the service, which is free for the first month.

Podcast Episode 85 (5:45)

direct download | Internet Archive page

PS What are you watching tonight?

September 18, 2010

HOW YOUR REAL AGE AND INSURANCE AGE DIFFER

"I'm almost 14."

That's what our son said when he was almost six. We were on vacation and he wanted to watch Small Soldiers on HBO.

Parents measure a baby's age in hours, days, weeks and then months.

Children measure age differently. Mere days after your 4th birthday, your 5th feels very far away. School and other "big kid" stuff looks alluring. So your age is 4 years and 3 months, then 4 1/2, then "almost 5".

Later, we measure our age in years and milestones like the "big 4-0".

Dennis The Menace once said that once you're "over the hill", life picks up speed. Some retirees say time moves faster. As a nonretiree, I find that hard to believe. If every day feels like Saturday, maybe a week passes overnight?

40 or 41?

Suppose you turned 40 on January 1. How old are you in March, June, September and December?
You'd probably round down and say 40. We age every day but give of our age as of our last birthday. Maybe this is a psychological trick to help us feel younger. Maybe it's just simpler.

What works in real life doesn't work for insurance. If you're 40.01, do you want to pay the same premiums as someone who's 40.99? That means you're subsidizing the older ones. Similarly, if you're a nonsmoker, you don't want your premium rates blended with smokers. If you're healthy, you'd want credit too.

To be fair overall, insurers usually base your premium on your age as of your nearest birthday. That means an insurance age of 40 covers a range from 39.51 to 40.49 years from birth. The calculations are done via computer algorithms. You needn't worry about them.

41 or 40?

Confusion may arise when you look at your age on insurance projections (often called "illustrations"). The output might show your age at the time of purchase (say 40) or at the end of the first policy year (say 41).

Practices vary by company. The projection may only show the policy year (starting at 1). These differences means you'll need to pay attention — especially if comparing proposals from different companies or different advisors. If you want to compare projections on your 65th birthday, the output might show 65 or 66.

Backdating

Using our example of you turning 40 on January 1, what happens if your insurance takes effect on August 2? Your nearest birthday is the next January, which means you pay premiums as if you're 41. That may not feel fair.

Companies will often let start coverage a few months earlier, say June 2. You'd pay the premiums for June and July for this option. This process is called "backdating" and lets you "save age".

40 or 44?

Insurers really want to estimate your biological age.

So an unhealthy 40 year old may get "rated" and pay the premium rates for a healthy 44 year old. Insurance ratings are much like the surcharges that banks add if your credit rating is shaky.

In the future, age might get calculated daily. So the longer you wait, the older you get and the more you pay.

Podcast Episode 84 (4:15)

direct download | Internet Archive page

PS We relented and all watched Small Soldiers. After all, ages 6 and 14 are so close to each other.