Tuesday, January 16, 2007
Neflix: How About PC to TV?
I hadn't heard of Redbox before, and being able to rent movies for $1 a night at many locations is cost effective and convenient. Let's hope enough people forget to return the DVDs on times so that the business model makes sense.
Netflix would be wise to consider this typed of arrangement, and they could save a ton on shipping by allowing people to return movies centrally instead of paying the postal service for each disc.
But the new Netflix download service will probably put more of a hurting on MovieLink and CinemaNow than Blockbuster. Having a subscription model for a download service is smart and will tempt a lot of consumers.
Here's the real killer app -- a subscription service for downloading movies that can be easily watched on the TV. NetFlix could team with Sling Media so that people could rent the PC-to-TV boxes as part of their subscription service, sort of like what Comcast et al do with their DVR services. For $24.99 a month you can keep 3 movies at a time in your queue, and never have to leave home or worry about late fees. Watch for Comcast to do this straight to the computer with a video on demand counterpart.
By offering a few thousand movies -- much more than any physical store could hold -- Netflix would have something for everyone and put Blockbuster to shame.
Speaking of Redbox, one of the new DVDs is the first four hours of "24" which ran for the last two nights. Renting the DVD for a buck is much better than Fox trying to sell them for $15 each. If you are a hard core fan, you've probably already watched, TiVoed, or taped it. Fox would have been much smarter to make it available for download online, but then again, they hate the Internets.
By Jason Dowdell at 10:41 AM | Comments (1)