Techland
At the intersection of business and technology
Type Size  -  +
May 20, 2008, 11:37 am

Netflix unveils device that lets users stream movies

By Michal Lev-Ram

DVD-by-mail service Netflix announced Tuesday that it will start selling a device that lets its customers stream movies directly to their TV. That doesn’t mean Netflix customers should say goodbye to those bright red envelopes just yet – at launch, the new player will be able to download just 10% of the company’s extensive library, which includes over 100,000 movies and television shows. But, as more titles becomes available, the device could help usher in the end of the era of sending DVDs through snail mail.

After all, many Netflix customers are so-called early adopters – the type of consumers who like to buy early versions of new technologies or services sooner than their peers. So it’s not unlikely that at least a small portion of the company’s 8.2 million subscribers will be open to trying a new way of receiving movies. Especially if that new way works better than the old one.

Roughly the size of a paperback book, the Netflix player is made by a Silicon Valley startup called Roku, whose founder developed the first Digital Video Recorder (DVR). Customers will need to pay a one-time fee of $99 to purchase the device. After that, any Netflix subscribers who are signed up for plans that cost at least $9 a month will have access to an unlimited number of movies and shows, which will be delivered to the box (and their TV set) over the Internet.

The Roku device is the first of what will probably be several set-top boxes available through Netflix. Last January the company announced it was partnering with LG Electronics to develop a device that will let users stream content directly to their HDTV set.

Of course, there’s already the $229 Apple TV, and an Amazon service that lets consumers stream movies using their TiVo video recorder. But Netflix is hoping that both new and current users will be attracted to its new set-top box for its relatively low cost and “simplicity” – the device lets people browse and choose films online instead of having to dig through 10,000 titles on their TVs.

But even if the Roku box is a hit, it could still be a challenge to Netflix’s bottom line, at least initially. Early adopters also tend to be avid users. And, unlike Netflix’s DVD-by-mail service, the new digital download offer will allow customers to stream an unlimited number of movies for a flat monthly rate. That means people could be watching more content for the same price. On the other hand, in the long run the Roku box could help attract and retain customers, which is a lot more than those bright red envelopes can do these days.

it is possible to force the netflix viewer to display at a higher resulution. My 1.5Mbs DSL defaults to the lowest resolution. If I fource it to the next level it looks decent, and have had no problems. Call Netflix tech support and they will help you.

Posted By Lars Alb, NM : October 13, 2008 2:38 pm

Netflix + TiVo is a winning combination of the future, but does not exist unfortunately due to the restrictive atmosphere of business licensing.

Instead, we get Amazon Unbox with its unreasonable 24 hour watch period.

Posted By NuShrike, Los Angeles, CA : May 28, 2008 8:35 pm

I belong to NETFLIX and have made use of their program where we watch on demand on my cable computer, we love it. We have been pleased with this service, I turned off my television cable

Posted By Andrea , Bellevue NE : May 22, 2008 5:38 pm

I’ve tried the Netflix streaming, Guba, Joost, Reeltime.com, Cinemanow, and just about everyone else. Joost wins for content and Reeltime wins for quality. Can’t wait to see who comes out on top.

Posted By Anonymouse, NY : May 22, 2008 4:59 pm

I like to watch movies at http://www.reeltime.com. it offers the best deal so far, lower price/highest video quality… they will be adding a lot more contents.

Posted By Steve, Southfield, MI : May 22, 2008 3:26 pm

Check out Reeltime.com. They already provide unlimited streaming DVD quality movies for only $8 a month. It’s the best currently out there.

Posted By Jim McIntire, Centerville, Ohio : May 22, 2008 10:20 am

So when is this going to happen?

Posted By Ethan, Pleasanton, CA : May 20, 2008 1:21 pm

Netflix already offers a streaming service, but you were only able to stream the movie into Internet Explorer. When I signed up for Netflix, I was pretty excited for this “On Demand” feature, but then I found out that Netflix thinks my Internet is too slow (I have 1.5 Mbps DSL) and will only give me the “Basic” low quality streams that seem to be worse quality than TV. If this new Roku box is going to stream movies at the quality Internet Explorer does, I suspect there are going to be a few unsatisfied people. However, if you could tell me that Roku box can download the full high quality video, then please tell me where I can buy one.

Posted By Jacob Brunson, Fort Collins, Colorado : May 20, 2008 1:06 pm

Who at Netflix cares about unlimited streamed content when you’re cutting your post costs significantly?

Posted By Adam, Lewes, DE : May 20, 2008 12:47 pm
CNNMoney.com Comment Policy: CNNMoney.com encourages you to add a comment to this discussion. You may not post any unlawful, threatening, libelous, defamatory, obscene, pornographic or other material that would violate the law. Please note that CNNMoney.com may edit comments for clarity or to keep out questionable or off-topic material. All comments should be relevant to the post and remain respectful of other authors and commenters. By submitting your comment, you hereby give CNNMoney.com the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying information via all forms of media now known or hereafter devised, worldwide, in perpetuity. CNNMoney.com Privacy Statement.
* : Time reflects local markets trading time.† - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges.• Disclaimer
Powered by WordPress.com.