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Netflix Enters Over-the-Top Video Market
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May 21, 2008

Netflix Enters Over-the-Top Video Market

By Gary Kim, Contributing Editor


Netflix now is in the on-demand video business. Netflix has introduced an Internet streaming box built by Roku. The Netflix Player allows Netflix subscribers to instantly stream a growing library of movies and TV episodes from Netflix directly to the TV.

 
Priced at $99.99, the player is available for purchase at www.roku.com/netflixplayer.
 
The player gives Netflix members instant access to more than 10,000 movies and TV episodes.
 
"There are no extra charges and no viewing restrictions," says Reed Hastings, Netflix CEO. "For a one-time purchase of $99, Netflix members can watch as much as they want and as often as they want without paying more or impacting the number of DVDs they receive."
 
The Netflix Player is roughly the size of a paperback book and can integrate easily into any home entertainment system. All it takes is connecting the player to a TV and to the Internet. For homes with wireless Internet connectivity, the player is WiFi enabled.
 
From the Netflix Web site, members simply add movies and TV episodes to their individual instant queues, and those choices are then displayed on the TV and available to watch instantly.
 
With the player's accompanying remote control, members can browse and make selections right on the TV screen and also have the ability to read synopses and rate movies. In addition, they have the option of fast-forwarding and rewinding the video stream via the remote.
 
Additional features of the product include optimization of the Netflix video streaming technology, which eliminates the need for a hard disk drive associated with video downloads, and built-in connectivity for automatic software upgrades, which will keep the device current with service enhancements.
 
The Netflix Player includes a variety of interfaces including HDMI, component video, S-Video, composite video, digital optical audio and analog stereo audio.
 
The box can use either a wired Ethernet or WiFi connection. It remains to be seen whether Netflix will do better than the Apple (News - Alert) TV appliance, which hasn't been a terribly great hit. But Netflix will have the advantage of lots of long tail content in its library.
 
We'll have to see how the service develops, but if successful, Netflix will emerge as a key competitor to cable, satellite and telco video on demand offerings.
 
Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
 

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