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Netflix Developing Set Top Box

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    #1

    Netflix Developing Set Top Box

    I found this on engadget, looks like possible competition for Vudu...
    http://www.engadget.com/2008/01/02/n...p-box-with-lg/
    Tags: None
    #2
    Re: Netflix Developing Set Top Box

    Competition is a good thing - it should loosen up the Studios.

    Comment

      #3
      Re: Netflix Developing Set Top Box

      Agree it is good to see competition , and I think Vudu is well positioned to compete from a service perspective. Assuming relative content and UI parity, challenges for Vudu will of course be overcoming the brand and existing customer base of a Netflix or an Apple.

      I think the more interesting point is the fact that Netflix is making a software play here, looking to partner with many device manufacturers rather than manufacture the STB itself. For Netflix this is probably the right move (given lack of hardware expertise).

      This brings to mind whether (when?) Vudu will pursue a similar route. I'd bet my bottom dollar that Vudu management/strategy team has considered this. But given the current state of VOD, it makes sense for an integrated hardware/software device to deliver a top-notch experience, which Vudu does. Hopefully this will continue to differentiate Vudu from the "me too" boxes sure to come in 2008.

      However, there's only so much room for boxes under the TV and the DVRs/gaming consoles/HTPCs/media extenders/etc are all rapidly converging - not to mention TVs with built in capabilities. So at some point Vudu will need to either consider licensing the UI/remote and/or building in additional capabilities (media extender, DVR, games, etc) and becoming THE box...

      It will be interesting to see how the Netflix-LG STB does, and whether Netflix is able to strike more partnerships.

      CES should be interesting - look forward to the Vudu announcements, as well as seeing what Apple, MSFT, and others have in store.

      Comment

        #4
        Re: Netflix Developing Set Top Box

        Netflix has been working on a STB for almost the last year. This isn't new news. They even hired Anthony Wood (Mr. ReplayTV) away from his current company Roku (which he still owns, btw) to help them develop a STB. So Vudu's been expecting this play since Vudu was still in Alpha testing...

        Comment

          #5
          Re: Netflix Developing Set Top Box



          Looks vaguely familiar.
          If they meet their price point of $99, how will vudu respond? It'll be interesting to see.

          Comment

            #6
            Re: Netflix Developing Set Top Box

            I'm wondering if Netflix is going to employ a P2P system for this. It seems to me that =is kind of at the heart of what Vudu is doing. If it is really important to making VOD work well, I would think that other solutions will have glaring deficiencies with regard to instant play capabilities, etc. If that were true, you couldn't pay me to use that box instead of Vudu.

            Comment

              #7
              Re: Netflix Developing Set Top Box

              Originally posted by bqmeister View Post
              If they meet their price point of $99, how will vudu respond? It'll be interesting to see.
              Where did you see that that was their price point? All I saw was that on the blog from which this image originated, the blogger opined:

              The pricing for the box has not been set, but I would expect it to cost less than $200 ($99 might be a good introductory price).

              Comment

                #8
                Re: Netflix Developing Set Top Box

                Originally posted by MaxH View Post
                Where did you see that that was their price point? All I saw was that on the blog from which this image originated, the blogger opined:
                I've seen that price mentioned several times over the past 6 months. Nothing concrete and nothing specifically from netflix, but still the $99 mark is mentioned in many articles about it.

                Netflix' solution is streaming only. No hard drive, and no purchases - just rentals. $99 seems like a decent price point. Much higher than that and I doubt they'd be too successful.

                I have an unlimited plan from netflix so I'm not sure how the hours actually work out. If you have 18 hours of movies a month, and you rent a movie but only watch 30 minutes of it but the movie is actually 2 hours long, does that count as 30 minutes of usage or 2 hours of usage? If 30 minutes, that's a great way to try movies out. If the movie sucks but you only watch 10 minutes of it, no big loss. Subscription based rentals could be a nice idea.

                Comment

                  #9
                  Re: Netflix Developing Set Top Box

                  P2P is critical to success with a large user base as is a self scaling system. The server requirements for a client server model are enormous with large numbers of users.

                  Comment

                    #10
                    Re: Netflix Developing Set Top Box

                    I read somewhere this morning that you'll still have to select your movies from a computer first...

                    This is just a HUGE gut feel, but to me it seems like they are trying to take a really short-cut method to getting their current streaming service to a TV and that the interfact and overal end-user appeal is going to be very weak compared to what Vudu currently offers.

                    My hope from all of this is that the competition will simply grease-up the pipeline for more favorable terms with the studios so that Vudu can deliver on the big issues (every movie rentable and movies available on Vudu when they're available elsewhere).

                    Comment

                      #11
                      Re: Netflix Developing Set Top Box

                      FYI, here's a good overview of Netflix' story and other VOD solutions -- http://www.businessweek.com/technolo...012_786403.htm

                      Another story that talks about Apple and their entry into the market -- http://www.businessweek.com/technolo...position=link1

                      Comment

                        #12
                        Re: Netflix Developing Set Top Box

                        From an article on MSNBC.com:

                        subscribers will still need to use a computer to pick out which programs they're interested in streaming. The selections, culled from more than 6,000 titles available in streaming library, will then show up on the TV screen.
                        Cumbersome and stupid. Also, since the box is just streaming it offers no advantage over cable VOD. No means of purchase or rent now for viewing later. And there's no portability either.

                        Vudu is clearly the winner here...

                        Comment

                          #13
                          Re: Netflix Developing Set Top Box

                          Originally posted by NA9D View Post
                          From an article on MSNBC.com:



                          Cumbersome and stupid. Also, since the box is just streaming it offers no advantage over cable VOD. No means of purchase or rent now for viewing later. And there's no portability either.

                          Vudu is clearly the winner here...
                          I agree. The fact that you'll still need to interact with a computer is stupid. Hell - I could use my laptop to purchase a movie and then move my laptop beneath my plasma and hook it up via DVI if that's all they're going to provide. I don't need a $99 piece of equipment to do that.

                          Comment

                            #14
                            Re: Netflix Developing Set Top Box

                            Originally posted by NA9D View Post
                            From an article on MSNBC.com:



                            Cumbersome and stupid. Also, since the box is just streaming it offers no advantage over cable VOD. No means of purchase or rent now for viewing later. And there's no portability either.

                            Vudu is clearly the winner here...
                            I really don't believe a PC will still be required. It doesn't make any sense.
                            Unless maybe their box needs to connect to a PC over your home network.

                            I could be wrong. Time will tell

                            Comment

                              #15
                              Re: Netflix Developing Set Top Box

                              Originally posted by bqmeister View Post
                              I really don't believe a PC will still be required. It doesn't make any sense.
                              Unless maybe their box needs to connect to a PC over your home network.

                              I could be wrong. Time will tell
                              It's very clear if you read the article and do some searching.

                              You have to go into their website on your PC and select what movies will show up as available on the streaming box. It can't store a database because it has no hard drive and all it can do is stream. It would be too slow to access the 5000 or so online titles just via http. So they make the user pair it down...

                              Comment

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