Netflix to Debut Streaming Set Top Box with LG
As we’ve discussed previously on Episode #146 of the Film Junk Podcast, there are a handful of options out there currently competing for the future of movie distribution. While I do personally feel that the future is going to be digital, I don’t think digital downloads on your home computer are necessarily the solution a lot of people want. What I think will be a big deal is the ability to stream digital movies on-demand directly to your TV. Some cable networks already offer preliminary versions of this (HBO in the U.S. and TMN in Canada, for example), but now it looks like Netflix is poised to enter the arena as well.
According to the New York Times, they are partnering with LG to produce a set top box that will connect directly to your TV. This would allow them to push the library of 600 or so movies that are currently viewable on-demand from their website to people’s living rooms instead of their home computers. The movies will not initially be available in high-definition, although it is something they are working towards.
This is a smart move for Netflix. I’ve always thought that the one weak link in their business model is the fact that they have to rely on regular mail to send and receive DVDs to customers. Although there are already numerous solutions out there for streaming digital downloads from a home computer to a TV (Apple TV for example), it’s usually a bit too high tech for the average person.
Assuming Netflix can provide high quality movies, on-demand, in an easy to use package, with a rental window that is the same as the DVD release date, then I think they’re going to have a pretty massive advantage. If they could eventually expand the library for on-demand video to be every DVD in their catalogue (no small feat), then I would absolutely be sold. If Netflix was actually available in Canada, that is. What do you think? Can you see this catching on?
Comments (4)
What is the pricing going to be?
Posted by Mike on January 7th, 2008It sounds like it’s going to be a part of whatever a regular Netflix membership costs you. Although there was something in the article about only getting 17 hours of on demand watching for $17 dollars a month or something like that.
Posted by Sean on January 7th, 2008With my Netflix membership I am allowed an unlimited number of DVDs, three at a time, every month by mail, which usually ends up being between 17 and 20 movies per month for me. This deal is $17. I also get 17 hours of streaming video content off of their website, but as of yet I haven’t been able to make use of it because I have a Mac. Right now they only support Windows XP and Vista.
If this set top box program is adequately priced, I’d definitely like to take advantage of it. I have to assume the price would greatly increase, though. As I said, I get about 20 movies a month via mail, three at a time, and that costs me $17. If I didn’t have to worry about the confines of only getting three movies at a time, I’m sure it would cost me more than I’m currently paying. In fact, there are other deals on the site which allow you to get between 4 and 8 DVDs at a time instead of 3, the most expensive of which costing $48. Something tells me that if and when this service comes into existence, it will end up costing somewhere in the vicinity of that most expensive deal per month.
Posted by Rian on January 7th, 2008Leave a Reply