Netflix Goes TVflix; Ties Up With LG for Direct-To-TV Movie Box; Kills Own Branded Box
By Rafat Ali - Wed 02 Jan 2008 07:47 PM PST
Netflix (NSDQ: NFLX) is launching a direct-to-TV movie service, through a dedicated box, as a much-needed progression beyond its mail-by-DVD service: it has tied up with South Korean manufacturer LG Electronics (SEO: 066570) to build the set-top box. LG Electronics didn’t reveal how much the set-top box will cost when it hits the market in the summer or early autumn, reports AP. Subscribers will log in online to make the selections, culled from about 6,000 titles available in the service’s streaming library, and those will then show up on the TV screen.
It looks like after the box price, there would be no extra charges for exiting Netflix subscribers. According to this Reuters story, citing sources, LG would likely embed the receiver into its $799 dual-DVD player, which supports the competing Blu-ray and HD-DVD DVD formats. Even that price is high, and Netflix won’t be streaming in HD.
Interestingly, this new deal is another change-of-heart on its digital strategy...the company had been experimenting with building its own Netflix-brand set-top box and last spring hired Anthony Wood, the founder of ReplayTV. But now CEO Reed Hastings said that integrating Netflix into other companies’ devices made more sense, and Wood would soon leave Netflix to return to another company he founded, Roku, the NYT story says.
Of course, the dedicated set-top box has been the holy-grail and graveyard for many such dreams in the past, and we’ve documented them here over the last few years. Moviebeam and Akimbo failed. Vudu and BuildingB are still trying. Amazon.com (NSDQ: AMZN) has a partnership with TiVo (NSDQ: TIVO) to lets consumers download video to TV. Then there’s AppleTV and and the hybrid TakeTV service from SanDisk (NSDQ: SNDK). Apple (NSDQ: AAPL) is expected to announced an expansion of its online movie download service to include rentals, with Fox and Disney (NYSE: DIS) participating...also expected are improvements to its AppleTV product.
The company’s positioning this as “first of many” such partnerships it will do this year with hardware device companies, including videogame consoles (Xbox? Hastings sits on Microsoft’s (NSDQ: MSFT) board) to connect to the TV.
Netflix launched an online movie service for its subscribers early last year, using a quota system, and of late has been experimenting with giving unlimited viewing options to some subscribers.
Posted in: Entertainment, Movies, Media, TV
Tags: lg electronics, netflix,
