Filed under: Video
Netflix to introduce streaming-only service -- but not in the US
Netflix have announced their intention to launch a streaming-only video option beginning in the second half of 2010. Currently the only way to stream Netflix movies is to sign up for the DVD-rental-by-mail service. But the new web-only option will only be available outside the US.Why make a streaming service Netflix' first offering outside the US? 'Tricky' postal systems, says CEO Reed Hastings.
Now, this is a bit of an odd one. Most western nations already have DVD-by-mail systems that work just as well as (or better) than Netflix. So I don't think 'tricky' postal systems are the real reason behind this move. What then do Netflix intend to achieve by focusing on streaming content outside of the US? Is it just a matter of flexibility? More subscription options?
But again, why outside the US? Netflix's brand recognition outside the US is not great.
Hastings and Netflix claim there is still seemingly enough demand for such a service, with 42% of their subscribers watching at least "15 minutes of one TV show or movie in the last quarter." Readwriteweb point to the growing adoption of Hulu and BBC's iPlayer for TV, Pandora and Spotify for music -- but I don't think it's quite the same thing for movies.
People like using their big, wide-screen televisions. They like using their expensive sound set-ups. Set-top boxes that stream content from the Web are still relatively hard to come by and not readily adopted by consumers. Then there's the matter of bandwidth: streaming a movie in high-resolution with a surround-sound audio track is still way beyond the capacity of most American and European Internet connections.
Netflix haven't yet announced which country will get to trial their streaming-movie service, but it'll be interesting to see which one they choose -- and if it will indeed be successful.
[via Readwriteweb]
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Reader Comments (Page 1 of 1)
chris said 1:01PM on 10-23-2009
Have the authors of DownloadSquad ever heard of Netflix's "Watch Instantly" feature?
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Scruffy Bob said 1:02PM on 10-23-2009
I already stream movies from Netflix in the US. I think you missed that it was a "streaming-only" service. I can get a DVD sent to me or stream movies from Netflix. What they are looking to do in other countries, since the whole shipping logistics issue would be too comples, is offer a service that is streaming-only without the option to get a DVD shipped.
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Scruffy Bob said 1:04PM on 10-23-2009
Hm, comments need an "edit" button :) Comples -> Complex
subfuze said 1:04PM on 10-23-2009
Might want to change the title on this one- from the looks of the article, it's a streaming *only* service that they're launching. As chris mentioned, "Watch Instantly" is already available.
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Sebastian Anthony said 1:16PM on 10-23-2009
I've corrected it. Thanks for the clarification!
brady.matt said 1:06PM on 10-23-2009
Your summary is vague compared to the actual story. For one, Netflix has offered streaming in the US for years.
What this is actually about is a streaming-ONLY account type. An account that offers only streaming an no movies by mail.
The actual article uses the phrase "STREAMING-ONLY" nine times. Your summary removed the "-only" part which alters the meaning entirely.
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Ludovic said 1:47PM on 10-23-2009
And www.m6replay.fr in France
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kewlceo said 2:03PM on 10-23-2009
MADE ME LQQK! lol.
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pg808 said 4:24PM on 10-23-2009
Netflix is heading towards streaming-only here in the US, too. Reed Hastings, Netflix CEO, even has a funny quote that goes something like "That's why we're called 'Netflix', and not 'DVD In The Mail'."
They'll launch streaming-only plans in the US next year:
http://arstechnica.com/media/news/2009/02/netflix-ceo-well-offer-streaming-only-plan-by-2010.ars
...but who knows when they'll discontinue the DVD-in-the-mail plans.
Other possible reasons for streaming-only in other countries:
- Readily available, low-cost broadband that a number of first world countries have.
- Simpler and cheaper to setup a server farm with think pipes, than multiple warehouses with a ton of discs and employees to process everything.
- Avoiding a DVD-in-the-mail launch now in another country, followed by cancellation of said service here in the US, then the other country, in a couple of years.
- Discs get scratched, lost, and sometimes "disappear in the mail."
- Shiny discs are getting old. My guess is that Blu-Ray will be the last major media format offered in 12cm discs.
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Sebastian Anthony said 4:41PM on 10-23-2009
I agree on most of your points. It's definitely a service that SHOULD exist. Whether it will be adopted or not, I don't know -- maybe not until our last-mile connections are big enough to stream at a decent quality.
There are some big-and-juicy connections in the EU, but they're not THAT proliferated. Sweden's low-density-and-good-connections might make sense perhaps (but then again, piracy is rife there). Holland, Denmark maybe.
England, Germany, France all have DVD-in-the-mail services, and in general people don't have more than 1-2mbit to the home. Looking to the future tho', I think this will be a very big service.
pg808 said 4:26PM on 10-23-2009
"think pipes" should read "thick pipes"
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sodapop said 4:38PM on 10-23-2009
I am not sure why you are buggin'. In USA unlimited streaming is only 10$. The international streaming will cost more than that.
No if you want to complain that the USA streaming never has new releases, I can get behind you. I expect the international streaming will have new releases since there are no discs.
I watch 2-3 streaming a week plus at least on disc. Great deal.
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Slashee the Cow said 6:16PM on 10-23-2009
It'd be nice in Australia, but considering basically every internet plan has a download limit (after which you're usually slowed to 64kbps), I don't think you could do a whole lot of streaming...
(For example, I pay roughly 65 US dollars per month for 40 gigabytes download at 1.5mbit).
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codeman38 said 6:44PM on 10-23-2009
I still rent DVDs from Netflix rather than using Watch Instantly because there are no subtitles available for the streaming movies. For someone with hearing as dodgy as mine, that's quite a necessary feature.
(Hm, perhaps once they make the service available in more countries, that option will be rolled out...)
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James said 9:29PM on 10-24-2009
"Set-top boxes that stream content from the Web are still relatively hard to come by"
What was the last retail outlet you went to that *didn't* sell the Xbox 360? I assume that the Netflix service on 360 is currently only in the US, but that's probably for the good reason that Netflix has only worked out licensing for content in the US. Once Netflix goes worldwide, there's no reason the 360 service for it won't follow suit. And a Roku Netflix box (haven't used 'em but hear they're good) is only a hundred bucks -- if you have Internet enough to stream video, you probably have Internet enough to order one of those.
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Sebastian Anthony said 9:38PM on 10-24-2009
And the number of set-top boxes (or Xboxes) versus Internet connections...?
OK, how many people do you know that use their Xbox to stream movies from the Internet? (Legally... :)