Netflix New Streaming Only Plan

NetflixNetflix recently changed up its DVD rental options, singling a shift away from physical DVD’s and toward streaming of content. There is now a streaming only option for only $7.99 a month. Normal DVD by mail plans go up by $1.

Netflix has very smartly pushed their software onto just about every streaming media device available today from Xbox to Google TV, Apple TV, Roku and many Internet connected DVD players. It makes sense for them to offer a streaming only plan to go along with these devices. The only problem is that while Netflix has increased it’s streaming movie and tv offerings, it’s still nowhere near what is available for their DVD by mail customers. For this to really work, Netflix is going to have to push even harder and make many more  movies available for streaming. Eventually, in all reality, there should be no DVD by mail all and everything should be streaming only. You would think movie studios would love this as profits are higher and copying movies is make more difficult. But as with many things lately, the DVD business model is so firmly intrenched change is hard.

It’s becoming more clear that this is where we are going in the future. Content will be largely cloud based and will be available on demand as a stream. It’s best for all parties really even though some will be slow recognize it.

Netflix and Apple TV – Great and Flawed

As a movie lover, I love  my Netflix subscription. I can get practically any movie ever made including many indie ones that never show near me. I pay one simple monthly fee and can watch as many movies as I can handle. I can take as much time to watch the movie as I need and return it at my convenience. It’s the kind of business model that’s made Netflix a winner and has put undue pressure on Blockbuster. What could be better?

Well, if I didn’t have to wait for the mail to get a movie. If I could sit in the comfort of my couch and order up movies instantly. Enter Apple TV. Especially with the new Take 2 version of Apple TV where rentals are part of the equation, the speed an simplicity of watching movies on demand is unparalleled.

Netflix and Apple have equal but opposite problems. Apple  has a fantastic distribution system but not nearly enough movies. Netflix has all the movies and then some, but an outdated and slower delivery method. I’m waiting for one or the other to deliver the knockout punch. If Netflix could only deliver online more effectively. Their current system for watching movies online is cumbersome, only works with Windows and is available for very few movies. So, it’s useless. Apple has very few movies available and at the rate they add movies, it will take a lifetime to match the Netflix selection. Also, Apple has some of the more draconian and lame DRM rules for rented movies. Lastly, at $3.99 per movie, it only takes 3 iTunes movie rentals to equal a basic Netflix subscription which gets you unlimited movies per month and no stupid DRM rules.

Now Apple is the 10,000lb gorilla in this match and should be able to knock out Netflix easily, but so long as Apple and Hollywood keep their heads in the ground, they’re never going to do it. I actually blame Hollywood on this one as they are mostly short sided and paranoid. I think Apple does want to knock out Netflix but Hollywood won’t let them. Hollywood execs are more scared of Steve Jobs than they are of the so-called movie pirates. Fear is never a winning business strategy.