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Thursday, January 03, 2008

Netflix Delivers Net Movies to TV

Netflix is trying to outman Blockbuster and cable providers by delivering movies from the web directly to TVs. The company signed a deal with electronics company LG to bring content to TVs without the need for a PC.

We can expect more deals like this at the upcoming CES show as everyone -- from TiVo to Time Warner to Blockbuster to Apple-- fights to dominant the emerging market for web video to TV.

Netflix is smart to offer volume pricing for rentals for streamed movies, which are currently free for subscribers. That model won't last long as more consumers take advantage of the service. Netflix will save money on postage, but there's not much money in free, so the company will shift to a per title price, whether it's a DVD or a streamed movie.

The final piece is for Netflix or one of its competitors is to also provide web content via RSS feeds that can be delivered to TVs. You have to believe that cable companies such as Time Warner have the inside track since they "own" the deliver mechanism (the cable connection), if they are smart enough to think beyond the traditional cable space.

2008 will be THE year to determine who leads in this space. So let's take a poll: who is your money on?

Apple
Netflix
Blockbuster
TiVo/Amazon
Cable

By John Gartner at 08:59 AM | Comments (0)

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