The player
In case you didn't already know, I really, really like Netflix. I'll be picking one of these up next paycheck. While it's true the streaming video feature may not have a lot new releases, it does have a lot of cult hits, like Blade Runner, The Boondock Saints, The Office, Weeds, Tripping the Rift, Dexter, and Heroes season 1 and most of season two.Finally living up to its name, Netflix today introduced the Netflix Player by Roku, a small piece of hardware that can play any Netflix titles available for Internet streaming. With a cheap price and Netflix's signature subscription model, the Netflix Player brings a new set of rules to the video distribution table.
Manufactured by Silicon Valley startup Roku, the Netflix Player is about the size of a Mac mini and a bit thicker than an Apple TV. The unit impressively includes a full gamut of outputs, including HDMI, component video, S-video, optical audio, and even good ol' fashioned composite RCA jacks. Netflix doesn't want to leave any viewers in the dust just because they haven't sprung for the latest and greatest. The Netflix Player can get online via Ethernet or Wi-Fi 802.11 b/g, and setup reportedly requires not much more than entering a five-digit code the player gives you into your Netflix account.
After that, the movies and TV shows you've queued from Netflix's catalog of 10,000-plus "Watch Instantly" streaming titles appear on your TV, waiting for a command from Roku's notably simple remote. You can browse the rest of the streaming catalog right on your TV and select another title to begin streaming instantly, and titles can also be rated while you browse.
The cost? This is where things get interesting. Roku's Netflix Player is a one-time purchase of $99 (and available now). As long as you subscribe to any Netflix plan costing $8.99 or more, you're ready to stream as much content as you want. Netflix says you can pause and rewind streaming titles, but considering that the player has no hard drive, we'll reserve judgement until we can get a unit for review.
One particular setback of the Netflix Player, however, is that the company's streaming catalog isn't very appealing if you crave new releases. As CNET points out, just two of Netflix's top 100 DVD rentals are available for streaming: March of the Penguins and Eternal Sunshine of the Spotless Mind, and those aren't even really "new releases" anymore.
Still, the Netflix Player heralds the brave new on-demand future we foresaw back when we took an in-depth look at the state of video distribution. This simple device significantly lowers the barrier to entry when considered against similar offerings like Apple TV (which starts at $229), and Xbox 360 (~$300), a comparison we investigated back in March. New releases aside, Netflix is the first to bring a subscription model and an all-you-can-eat ticket to a video buffet of streaming video for the living room with (what sounds like) a dead-simple device. While the Netflix Player only does SD for now, it's ready for HD streaming which the company says is coming "soon."
This could be a big deal for both Netflix and the industry. Netflix can look forward to eventually saving a healthy chunk of change on shipping costs, even with customers who see no reason to upgrade from the $8.99 plan. Revenue sharing could also be on the table, as Netflix may be getting a cut of each Roku device.
For the rest of the industry, the Netflix Player and its streaming subscription model is an entirely new headache for traditional rental outlets like Blockbuster, and perhaps even DVD retailers everywhere. It's also something that the iTunes Store and Zune Marketplace's new video section will need to deal with. Steve Jobs may have been right when he said consumers don't want to rent music (exhibited by plenty of lackluster subscription music stores), but video is an entirely different situation. A lucrative portion of consumers are happy to rent—not own—their movies and TV shows, and the Netflix Player could very well score an early win for Netflix in the living room's digital distribution market.
