Netflix announced a partnership this morning that is expected to herald the next step in the evolution of the world's largest online movie rental service. The Los Gatos, California-based company is partnering with South Korean electronics manufacturer, LG, to develop a set-top box that will give consumers the ability to stream movies directly from the Internet to HDTVs--all without the aide of a PC.
"Internet to the TV is a huge opportunity," Netflix founder, chairman and CEO Reed Hastings said in a statement. "Netflix explored also offering its own Netflix-branded set-top boxes but we concluded that familiar consumer electronics devices from industry leaders like LG Electronics are a better consumer solution for getting the Internet to the TV."
The fruit of the collaboration--a networked piece of LG-designed hardware--is expected to become available to Netflix's 7 million consumers in the second half of 2008. Like the company's current offerings, access to the service will be made available for a monthly fee.
"Consumers crave compelling and immediate content, and the Netflix online streaming movie feature can provide instant gratification," added KI Kwon, president of LG USA's consumer electronics division. "This alliance underscores LG's goal of developing smart technologies that deliver flexibility, convenience and control to consumers."
The planned service follows last year's introduction of Play Now, which offered Netflix users the ability to stream a limited selection of films directly to their PC.
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January 3, 2008 11:07 AM
It sounds great, but pricing will determine its worth. A monthly Netflix fee, fine, but what about LG's set-top box? Do you rent it, or buy it out-right? How many movies would be available? Will it be offered in Blu-Ray as well?
January 3, 2008 12:01 PM
It sounds like a good idea in some respects-it puts the movies where most people will want to watch them. But adding another box could be a pain (especially when added to the Tivo, cablebox, PS3/XboxHD mess).
I'd also expect this to push the cable companies to offer more movies on-demand (which might actually push Netflix out the door).
And Blu-ray is a non-issue-these are all streamed media, and blu-ray is a disc format. Since no disks will be used, Blu-ray or HD-DVD is completely sidestepped.
January 3, 2008 12:33 PM
Thats great news
January 3, 2008 1:21 PM
I think the issue is what resolution will be offered? Will it be 1080i, 1080p or something lower? I'm afraid it will be lower, as these resolutions require quite a bit of bandwitdh. Instant gratification isn't so instant when you have to wait an hour while your movie "buffers".
January 4, 2008 8:45 AM
How is this better than an HD Tivo with Amazon unbox? Tivo already has the infrastructure in place in many living rooms to deliver the Netflix content and offers downloadable movies from Amazon (plus many other sources). As a prior poster pointed out, consumers don't want yet another set top box. If Netflix was smart, they would have partnered with Tivo.
January 4, 2008 12:46 PM
Netflix and Tivo tried to partner in 2004/2005. For some reason that arrangement fell apart. Then it looks like Tivo partnered with Amazon unbox to get their content. Netflix has always wanted to deliver their content online now they have a partner. The Netflix/LG arrangement will be a direct competitor of Tivo/Amazon unbox.
As far as an additional box, what if LG puts the Netflix device in a DVD player? How about a DVD/Blu-Ray/HDDVD player?
January 4, 2008 3:57 PM
Note that the article states "HDTV content." Amazon unbox streams at 2.5 MBPS. Compare that to a standard-def DVD which uses about twice that.
So even considering the more efficient VC-1 (WMV9) codec that Unbox uses, it can't be offering anything more than about DVD quality. Certainly nothing approaching "HDTV content", which by definition is at least 720p (1280 x 720). Any lower resolution is EDTV or SDTV.
January 5, 2008 6:00 PM
sounds good but will you be able to record these movies so watch at a later time?
October 29, 2008 6:18 PM
I agree that Internet to TV is a huge opportunity. But YOU DON'T NEED AN EXPENSIVE BOX. Just use your PC:
http://pctvcables.com