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Netflix to Offer Movie Downloads

kev0153 writes "Over at CNN Money they are reporting on a story about Netflix offering a video on demand over the web service in '05. They are also eyeing the multibillion-dollar video game market. "We're playing it a little defensively, because if we lose the digital download market, you'll soon be hearing about the rise and fall of Netflix," said Netflix CEO Reed Hastings."

34 of 205 comments (clear)

  1. They must be... by BarryJacobsen · · Score: 5, Funny

    They are also eyeing the multibillion-dollar video game market video game market.

    They must be eyeing it with both eyes.

  2. No matter how flexible the DRM by TheKidWho · · Score: 4, Informative

    Someone will still be upset about the DRM and decide to crack it. Then again movies are harder to distribute then mp3s. At least high quality ones.

    1. Re:No matter how flexible the DRM by Dr+Reducto · · Score: 4, Insightful

      Someone will still be upset about the DRM and decide to crack it. Then again movies are harder to distribute then mp3s. At least high quality ones. ....And cue the people who say it HAS to work on every platform, be completely open, and so on, ad infinitum. If you don't like it, you can vote with your wallet, and not buy it.

    2. Re:No matter how flexible the DRM by maxbang · · Score: 5, Insightful

      Dude, I hear what you're saying, but there's a difference between voting with your wallet and a company making a product that works properly from the get-go. It doesn't make sense to me that a coporation would make something closed and spend billions of dollars defending their product from crackers, anti-trust lawsuits, and constant requirements for upgrades. The way it works today is any closed proprietary format _will_ be broken and made available to the public. Why fight it? Just create something that works for everyone and you'll save yourself a lot of hassle and dollars in the long run. And you'll look good to the hacker community and the public, to boot. Then again, I'm not a corporate vice president of legal affairs/development/marketing/etc., so I have zero badges to wear that will allow me to crow about this with any credibility.

      --
      I also reply below your current threshold.
  3. Video-on-demand, eh? by Faust7 · · Score: 5, Funny

    The servers with the porn titles better have some mighty good hardware.

    1. Re:Video-on-demand, eh? by Bobdoer · · Score: 4, Interesting

      Netflix doesn't rent porn.
      They will once they look at the numbers. Porn is one of the best selling things ever, and nobody would want to lose an opportunity that large. Except, possibly, some religious or morally incensed people, but greed should rule those out.

    2. Re:Video-on-demand, eh? by drinkypoo · · Score: 4, Funny

      If it's BDSM porn, it'll be demand-on-video on video-on-demand.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    3. Re:Video-on-demand, eh? by Cranky_92109 · · Score: 4, Funny

      Netflix used to carry 'Mature' titles. Softcore type stuff. I suspect that either they figured it was too easy for kids to get a hold of or perhaps people kept renting it and not returning it. I know that most of the titles were always listed as 'Long Wait'. Errrr.... not that I ever had any in my queue or anything......gotta go!

    4. Re:Video-on-demand, eh? by Anonymous Coward · · Score: 5, Funny

      If it's open with pr0n, you can watch BDSM on BSD!

    5. Re:Video-on-demand, eh? by bill0755 · · Score: 5, Insightful

      They will once they look at the numbers. Porn is one of the best selling things ever, and nobody would want to lose an opportunity that large. Except, possibly, some religious or morally incensed people, but greed should rule those out.

      I seriously doubt they will rent porn just because it is a big market. Blockbuster doesn't and I wouldn't categorize them as religious or morally incensed.

      They are merely image concious. That is to say, they are not willing to give up the family market just to grab the extra sales in the porn market. And being new at this (movie downloads) makes them very visible and extra sensitive to their image.

  4. Download Speed by Luminari · · Score: 5, Informative

    Download speeds for files as large as full games and video are still too slow. Video download services are going to be a niche market until that can be improved. I hope netflix isn't staking their near term future on this.

  5. Re:I don't know about you, by superpulpsicle · · Score: 4, Insightful

    I agree. I think the U.S. market is trying to push too much through the bandwidth. This ain't exactly Japan where everyone lives 3 inches away from each other with 100baseT networks.

  6. Download speeds... by Faust7 · · Score: 5, Funny

    Hastings expects that Internet VOD market is still relatively small, with relatively long download times for even those with cable or DSL Internet connections.

    Is there a rental timeframe? Wouldn't it suck if your download didn't finish before the period was up?

    "Just 5K more to go! Just -- "
    "Sorry. Your rental period for 'My Pipes Need Cleaning' has expired. Thank you and please come again."

  7. Competitor by kilocomp · · Score: 5, Funny

    I guess they want to take on the currently established market leader....Kazza. I just hope Netflix edits out those annoying messages, the ones that say this is a screener copy only so call this number if you are not suppose to be watching this.

    1. Re:Competitor by BlueCup · · Score: 5, Funny

      *whistles*

      I have absolutely no idea what you're talking about.

      Absolutely no idea at all...

      *whistles*

      --
      WANNAWIKI Wannawiki WannaWiki WANNAWIKI!
  8. DVD Writers by Anonymous Coward · · Score: 5, Insightful

    DVD writers probably have something to do with this. With the release of personal dual layer DVD writers, the world of (DVD) movie rentals will change.

  9. Not likely to work... by LostCluster · · Score: 5, Interesting

    I don't think anybody can launch a Hollywood-movies-on-demand without having the cable companies on board. They can place servers closer to their users, and have the advantage of being able to allocate more bandwidth to themselves on their cable systems. They're going to have an advantage over any outside provider...

    1. Re:Not likely to work... by Aero+Leviathan · · Score: 5, Insightful

      And why would the cable companies want to help Netflix out? They've got their own video-on-demand services to push. Netflix is just more competition...

      --
      ~ Aero
    2. Re:Not likely to work... by nvrrobx · · Score: 4, Insightful

      The satellite companies would be better off to partner with Netflix and offer deals along with your satellite service.

      Satellite companies just do not have the bandwidth to do movies on demand like the cable companies do.

  10. first step in playing defensivly by miradu2000 · · Score: 5, Insightful

    Is not announcing your product an entire year ahead of launch - giving your competitors plenty of time to catch up.

    Case in point: Apple suprising everyone with iTMS - and than not getting a windows version out until all the other win music stores were released.

  11. Re:That's just a bug by Toxygen · · Score: 5, Funny

    Uhh, the previous post should probably read:

    They're still developing their Video-On-Demand system. That probably should read:

    They are also eyeing the multibillion-dollar bufferring...bufferring... video game market.

  12. Video games...VERY smart by TrentL · · Score: 5, Informative

    I read an article about 6 months ago where the Netflix guys said they weren't interested in the video game market. I'm glad they've wised up.

    In the meantime, Gamefly is an excellent video game rental service. The pricing and service are almost identical to Netflix.

  13. If the movie streams to my cache can I keep it? by darthcamaro · · Score: 4, Interesting

    So I get a video on demand over the internet - and I assume that it'll stream and make use of my cache (or some other temp file). If I keep the cache/temp file, does that mean I can keep/own the movie??
    Or will these guys have some kind of no-cache proxy in place?

  14. Re:Netflix? by Patik · · Score: 5, Informative
    Come out from under your rock.

    It's an online DVD rental system -- you pick out DVDs to rent, they mail them to you. You can keep them as long as you want, no late fees -- but you can only have three checked out at a time. $20/month, they pay for shipping both ways (USPS first class). Huge selection, lots of hard to find movies, in ~20 warehouses around the U.S.

  15. I hope they do game rentals by Anonymous Coward · · Score: 5, Funny

    I'm already copying and burning DVDs from netflix as fast as I can get them. Game rentals will be awesome for my stock pile.

    Getting ready for the day when everyones dead, except me. And the power is still on. Oh yeah, and my girlfriend will be there too.

    Yea for piracy. I love piracy. It feels like I'm making money!

  16. Won't be easy... by ccnull · · Score: 4, Insightful

    It won't be easy to pull all of this off. VOD is going to require a wholly new infrastructure and business model for them. Renting video games might be a problem too, when people start "losing" the games. A DVD probably runs about $5 in bulk... a game will probably cost them $30 or more.

    Still, it's great to see some innovation left in the dot-coms of the world....

  17. Re:Bandwidth? by Bagels · · Score: 4, Interesting

    The obvious answer is that they'll take a leaf out of BitTorrent's book and have people that are downloading/viewing the movie share with each other (maybe they could even give you a little discount if you provide enough bandwidth). Only, of course, it would be a closed, DRM-encumbered system...

    --
    --- Bwah?
  18. i don't understand by maxbang · · Score: 5, Funny

    will they be starting abm.netflix? or maybe #netflix on some dcc friendly irc network??

    --
    I also reply below your current threshold.
  19. Re:Bandwidth? by grotgrot · · Score: 4, Insightful
    and if I can download it off bit torrent, why would I want to pay for it?

    Some of us do have the notion that that is stealing, and actually do make an effort to pay for what we watch and play.

    Actually I think if the music/film industry had treated people well, instead of treating everyone like a thief just because some are thieves, then there would be little need for DRM and people would play nice. (The vast majority of people are fundamentally honest).

  20. Re:I don't know about you, by wronskyMan · · Score: 4, Funny

    The story-driven, linear RPGs popular in Japan could work,
    Or the rocket-driven (but also linear) RPGs popular in Soviet Russia...

    --
    --- You shall know the truth, and the truth shall make you mad- Neal (not Cowboy) Boortz
  21. Re:Does downloading games require a mod chip? by NanoGator · · Score: 4, Interesting

    "How can games be downloaded from netflix or any other place."

    There's a relatively simple way, well simple if Microsoft lends a hand. XBOX's have a network port. Connect that to broadband. Then, create a disc that alters things on the XBOX a bit, where the data that should be coming through the optical drive is instead pulled in from the network connection. So, in essence, the data is pulled down from the net in real time as if the disc is in the drive. There are obvious issues here, but I've seen a variant of this technique done on the PC before. It'd require broadband and a special disc.

    --
    "Derp de derp."
  22. CinemaNow's hard to beat. by agslashdot · · Score: 5, Interesting

    Lion's Gate (LGF ) owns a majority stake in CinemaNow, the closest competition. LGF stock has been all over the place in the past few months due to Video-On-Demand deals with major studios. Unlike LGF, which grew from strength to strength after acquiring Artisan Films, is based in Hollywood, and has exclusive rights to several hundred movies as well as ties with the major players in the entertainment business, Netflix is more a rental mall for DVDs.
    otoh, Netflix's CEO has been predicting his entry into the VOD market for the past few years, and they did trails with sample footage for most DVDs.
    Competition's always beneficial to the consumer.

  23. Re:Bandwidth? by athakur999 · · Score: 4, Insightful

    Technically, the music industry DID treat everyone as being honest. Until fairly recently, audio CDs had no protection on them whatsoever. That didn't stop Napster and Kazaa from booming as these "fundamentally honest" people began trading files in mass quantities.

    Not that I support the RIAA or their actions, but it is important to remember that things WERE all rosy and DRM free at one time and it got abused.

    --
    "People that quote themselves in their signatures bother me" - athakur999
  24. Re:DVD REVolution by Alystair · · Score: 4, Funny

    Watch me go from zero to dvd collector in one swift car heist!