Netflix to Take a Bite out of Apple?
We’ve already looked at the iTunes movie rental service alongside Netflix’s streaming offering. Side by side, it appears that the two video services are in completely separate leagues. Netflix offers unlimited streaming from its library of over 6,000 titles absolutely free of charge to all of its unlimited mail order subscribers. Apple on the other hand, charges between $3 and $5 for a single online rental that can only be watched for 24 hours from first play. Even so, we all know that the iTunes service will fare well as a result of hype, simplicity and marketing. During 2008 however, Netflix is rumored to have a few tricks up its sleeve that could potentially put a nice bump in Apple’s road. Firstly, there are multiple instances of Netflix confirming that it plans to attack Mac incompatibility issues head on. The current lack of available Mac-compatible DRM protection has been the source of the hold-up as Apple, of course, does not license their DRM solution. Microsoft’s cross-platform DRM encoding is already in beta however, and you can expect Netflix to be an early adopter. To complete the circle, Netflix will also be adding a set top box to their catalog that will allow Netflix-streamed content to be played on TV sets. With all this in store from the leader in mail order movie rentals, can we expect them to dominate the video download arena as well? They might not be as shiny as Apple or Amazon but they certainly seem to be positioned to provide a real competing service.
The difference wil set Apple form the rest is their set top box (AppleTV).
Most users’d rather watch their movie on the living room than on the desktop monitor.
SolSie - http://solsie.com
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If it takes iTunes to make these other companies make their stuff Mac compatible, that’s a WIN. Not a loss.
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Until Netflix debuts their own streaming set-top box, they will be outflanked by iTunes/Apple TV. The Apple combo makes it super simple to not only watch your own movies, TV shows, photos and music on your HDTV, it also provides a deliciously easy way to rent films - either in standard def or in HD (albeit with a smaller selection). Does Netflix stream HD films? And, until the N-streaming box comes out, who wants to stretch cables across the floor to connect your PC to your HDTV to watch Netflix streaming content?
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The big difference b/w the Netflix service and the iTunes (and Amazon) rental services are the catalogs. While Netflix has 6000 titles, how many of them are the popular new releases?
The answer, none.
The major studios won’t release those streaming rights until they are sure it won’t cannibalize DVD sales. On the other hand, iTunes, Amazon and the rest of the rental lot have the hot titles available to rent 30 days after DVD release.
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umm… Wasn’t AppleTV a flop? Last I heard it totally tanked…
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netflix managament team is very good. they will remain leader of the category for quite some time because they know how to evolve and defend very well.
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I am a Mac diehard. Have converted dozens of people to the platform. Love it.
Yet I am happy watching netflix movies via Parallels. I already pay the monthly fee for its snail mail service which I have loved for almost 10 years now, and now they give me 6000 movies for free? And Netflix streaming works very well.
And I can interrupt anytime and restart anytime. Last nite we started a flick on Netflix. We’ll finish it tonight. Can’t do that on iTunes.
Why would I ever pay $3 for an inconvenient, limited service?
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Hey JP, you are actually off a little on one point.
Why would you need N for HD? For most people there net connection is only 3-6 Mbps at the most. Far slower than even 802.11b! Unless the movies are caching to your computer and then streaming, having N is doing nothing for you. Jobs said Apple TV will cache directly to the device for rentals, don’t know about Netflix’s plans. If it caches directly to the device you are limited to receiving data at the data of your network connection, your wireless speed is meaningless.
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I agree with JP. There is no way I am sitting in my cold office in the back of the house to watch a movie on my 17 inch imac. I’m also not going to watch a movie on my 13 inch laptop with my 42 inch LCD laughing at me in the background.
The set top box from netflix will make it direct competition for a spot on the shelf next to my apple tv, but it will lose. That is unless Netlix’s box can stream my whole itunes library to my kick ass Harmon Kardon surround system like my apple tv already does.
If netlflix can find a way to get their movies into my itunes so I can use my apple tv to view them then I will NEVER rent a movie from itunes and give netflix my entire movie rental budget. Oh wait, they already have it.
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It is specious to Netflix’s offerings “absolutely free of charge”. Unless, of course, the monthly subscription is free of charge. I’m betting on Apple, at least until Netflix delivers functional software rather than promised vaporware.
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Man, I thought Star Trek dorks were bad. I guess Jobs does share a Shatner resemblance…..
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“Microsoft’s cross-platform DRM encoding is already in beta however, and you can expect Netflix to be an early adopter. ”
What cross platform DRM…Why do I want or need MS Draconian DRM on anything? Don’t we as consumers want DRM to go away? Can I transfer Netflix movies on to other devices such as the iPhone, iPod, & connect it to a any TV & watch them anywhere I want? Am I stuck sitting in front of a damn computer trying to watch a movie? Even if MS does do cross platform DRM it will be a half-assed implementation. If they get control of the market everyone is screwed. Prices will rise DRM content will become the norm. Want to know why kiddies? Because that is how MS makes money, by licensing DRM schemes. Just what consumers need now that DRM free music is making some head way. Competition will die. If they get control of the market they will drop cross platform compatibility. How do I know this? They have a track record. Anyone that wants MS to run everything has to have their head up there ass. MS makes mediocre copy cat junk. What kind of nipple head thinks MS’s DRM is a good idea? Typical MS we’ll have the same thing just wait….then when you buy into that level of mediority the next MS response will be…just wait the next version will be much better than the last version we screwed you on. We promise!!!
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If Netflix’s Mac implementation means installing Microsoft DRM on my Mac, that’s a show-stopper for me. I won’t trust Microsoft to be a gatekeeper of anything on my machine.
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Many people are now replacing or supplementing the stack of electronics beside their television with a computer. Most of the top vendors are producing computers in cases special built for this purpose. Not only do they look like they belong in the stack, but they have all the necessary connections. Essentially custom hardware that is hard wired forever is being replaced by software thats upgradeable to extend its useful life.
On the Mac side, many are using the mini, with added storage somewhere else on the network. Additional codecs are easily added to Front Row.
Powerful front ends are already well developed for the geeks out there, and user friendly alternatives are being developed by multiple software vendors every day.
Why do people look at the entertainment paradigm from five years ago, and not the one emerging today? This begs several questions, why are people watching movies from sources like netflix on their laptop? Why do vendors need a special box just for there service? When will cable companies relies we need a card, and not a whole box? Or the bigger question, why do we need a special “cable” data connection just for television?
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