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Netflix and iTunes Rentals Aiming At Different Crowds

Engadget notes an article in the New York Times discussing the substantially different markets that Netflix and Apple's movie rentals are aiming for. The site views the loosening of Netflix streaming restrictions as a reaction motivated entirely by the iTunes movie rental announcement, but beyond that the two services seem to have little connection. From Engadget's observations: "After speaking with Netflix's Reed Hastings, it was found that the vast majority of its streamable content was 'older,' and considering that users of this service can never look forward to brand new releases being available, the cost (i.e. free to most mail-in subscribers) makes sense. As for Apple, it's able to focus on crowds who are looking for a more robust, generally fresher selection, but of course, you'll pay the premium each time you indulge. Furthermore, Netflix has yet to make transferring video to any display / device other than your monitor easy, and while an LG set top box is indeed on the horizon, the differences in content selection are still likely to lure separate eyes."

15 of 166 comments (clear)

  1. Exactly what is new about AppleTV? by elrous0 · · Score: 4, Insightful

    The problem with AppleTV and this revolutionary new service is that, for some time, I've already had a device that lets me rent new movies via the internet (even *gasp* HD movies) and watch them on my TV. It's called an "Xbox 360." It even comes with the bonus features of letting me play videogames and chat with my friends.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
    1. Re:Exactly what is new about AppleTV? by stefanlasiewski · · Score: 2, Insightful

      Now they just need a linux release of iTunes.

      They should remove the AppleTV dependency (lock-in) on iTunes, and let me browse my network folder via alternate method. I know this will never happen, because most of Apple's products try to direct people to the iTunes/iTMS revenue stream.

      The AppleTV is a cool looking device, but I don't want to be dependent on iTunes, especially for $229. iTunes is a horrible music organizer.

      --
      "Can of worms? The can is open... the worms are everywhere."
    2. Re:Exactly what is new about AppleTV? by littleshadow · · Score: 3, Insightful

      Apples and Oranges... I have both.

      I purchased the 360 the night it came out. In June, it was moved to the "game room" when I purchased an Elite and an HD-DVD drive. I then received an AppleTV as a gift in July (yes, life is hard). So far, I've downloaded (or rather attempted to download) two movies on the 360. The experience was frustrating to put it mildly. I honostly find downloading via P2P, converting and burning a less stressful way to go. I have purchased a few HD-DVDs but the volume of the fans on the 360 is absurd when your trying to watch a movie.

      The AppleTV, on the other hand, easily competes with DirectTV for my eyeballs. As the cliche goes, "it just works". That said, I can definitely sympathize with people turned off by the iTunes requirement. But that's the absolute, if not understated, beauty of this update. Sure, the ability to rent movies will be nice but the real, and apparently much overlooked, change is that the AppleTV will now connect directly to the internet to obtain content. No more iTunes.

      I still think the 360 is #1 for gaming but it's just not in the same game as the AppleTV for movies.

  2. Netflix is different than Apple... by CF4L · · Score: 3, Insightful

    Netflix did an excellent job of separating themselves from Apple. They didn't punish their current subscribers by charging them extra for this service (as Apple did for iPod touch owners with the new apps).

    1. Re:Netflix is different than Apple... by porcupine8 · · Score: 2, Insightful

      They only include it "for free" so that they don't have to give a discount to those of us who can't use the streaming service b/c we're not using Windows.

      --
      Warning: Apple/Nintendo fangirl. Likes her electronics cute & cuddly. May be rabid.
    2. Re:Netflix is different than Apple... by adamstew · · Score: 3, Insightful

      there is FREE software going out to all current gen iPods (including the touch) to enable the rental ability with them.

      What was not free was the additional apps (maps, stocks, weather, mail, etc.) Those are going to be included in future shipments for free, but current shipments they have to charge something because of accounting reasons...same reason they had to charge for the 802.11n in the macs that had the hardware but not the software to use the 802.11n standard.

      iPhone and Apple TV get the software updates for free because they accounted the revenue for those devices differently than they do regular iPods and macs, so they are able to add additional features for free.

      netflix didn't have to do this because netflix has no hardware (yet). They are just adding additional services to their subscription model in order to be more competitive.

      Either way, it's not apple trying to screw customers out of money for updates...if they were, they would rather you bought a new iPod touch to get the additional features, rather than a moderately priced upgrade.

    3. Re:Netflix is different than Apple... by mikeboone · · Score: 2, Insightful

      Didn't they charge $2 for that 802.11n update? $20 is more like a for-profit venture than an accounting technicality. Since they're charging $20 to update iPod Touches (mine is like 3 weeks old for Pete's sake), I will be astonished if the forthcoming SDK is free or even remotely affordable for independent developers.

  3. TV shows by gEvil+(beta) · · Score: 3, Insightful

    As I've said before, the Netflix service isn't too great for new movies (as this article points out), but it is wonderful for older TV shows (and some newer ones). Now that they've lifted the time limits, I'll be sitting down and watching tons of old shows. Full seasons of Alfred Hitchcock Presents, Amazing Stories (well, the first season at least), and tons and tons of BBC stuff (Doctor Who and Red Dwarf, anyone?). I saw that they recently added Dexter Season 1. Hopefully they'll be putting up Season 2 of that soon, too. Perfect timing, too, since it's the middle of Winter and there's nothing new on TV due to the writers strike.

    --
    This guy's the limit!
    1. Re:TV shows by WinPimp2K · · Score: 3, Insightful

      "there's nothing new on TV due to the writers strike"

      Hmm.. and who is getting a residual payment from your downloads of those older shows?

      I'm uncertain about what might be better, but if the writers are going to stick with some form of deferred compensation/revenue sharing model, you would think that they might have caught on to the idea of a more comprehensive contract in the past 30 years. One with a clause that just syas, when the studio (or whoever) gets money, the writers will get their piece of the action - rather than the currently lame half-baked mashup of clauses and conditions and explicitly defined distribution models.

      --

      You either believe in rational thought or you don't
  4. Not my crowd. by ViX44 · · Score: 1, Insightful

    They aren't aiming at my crowd, the Windows 2000 SP4 user. "Try again from a computer with Windows XP Service Pack 2 or Windows Vista." Try again? What is this, a scratch-off ticket? At least support Ubuntu since it will work on my laptop (which won't run 2000, or even XP without using Hacking 101 skills on it because of driver drama caused by ______, where blank is no good reason at all) and will probably become my OS for the future. A pity, I would like to stream movies for my personal interests (I.E., Futurama, SF B films) and use the mail service for family-friendly (comedy and action) films.

  5. Netflix Is A RipOff by curmudgeon99 · · Score: 1, Insightful

    I used Netflix for a few years but the problem was my spreadsheet. I kept track of when I sent back movies and the time when I received new ones and I noticed that they began to increase the length of time it took for me to receive my next DVD, thereby negating the value of their allegedly "unlimited" monthly service. They lost a class action suit on that precise point years later. I have more faith in Apple to not screw me just because they can.

    1. Re:Netflix Is A RipOff by Belial6 · · Score: 3, Insightful

      No, they have not. The law suit that they lost was had nothing to do with 'throttling', as keeps getting repeated. What they were sued for was for immediately sending high usage subscribers a movie lower on their list instead of the top one if they had to choose between sending a high usage subscriber the last copy, or a low usage subscriber. They have since updated their TOS to reflect this.

      You should rally have been looking at your post office as the culprit. Netflix has way to many people to be individually targeting people for delayed shipments. The only way that they could realistically get any benefit from it would be if they had a system to automatically flag accounts. There are way to many people like me that have spent years (over 5 for me) returning just about every single movie the day after they receive it for Netflix to have an automated system to throttle.

  6. I'm definitely not Apple's target market, but... by blueZ3 · · Score: 4, Insightful

    I think that $3 for a movie "rental" is way too expensive, which is the very reason I dropped Blockbuster for Netflix in the first place. I don't care if it is a new release, recent T.V. episode, or whatever--three dollars is half the cost of a matinée on the big screen.

    We don't have cable or satellite T.V. and I can't see spending money on the antenna we'd need for broadcast digital--five hundred channels of nothing is still nothing. So we have Netflix. While I don't watch much, my wife watches about one episode of a T.V. series each day. Perhaps every other week we get a movie, and occasionally we'll watch episodes some old series together. So we run through maybe 10-15 DVDs worth of content each month. That type of viewing pattern would be significantly more than the $18 a month we currently pay Netflix, say around $45 if you had to get all the TV episodes as individual "rentals"

    It will be interesting to see if Apple can do to video viewing what it did to music (make the music player ubiquitous, or nearly so). The main issues I see are cost (per video) and cost (for a device to play the content).

    --
    Interested in a Flash-based MAME front end? Visit mame.danzbb.com
  7. Re:Public Libraries by PhoenixFlare · · Score: 3, Insightful

    I always wonder why these sort of discussions leave out public libraries. Our local library has an amazing DVD selection (much of it purchased from a failed video store)

    Because most people's libraries weren't lucky enough to have a failed video store to acquire a collection from - Netflix's selection is so much wider than any public library (or video store, for that matter) i've ever been in or heard of, there's almost no point making a comparison.

  8. Re:I'm definitely not Apple's target market, but.. by jaysones · · Score: 2, Insightful

    THREE dollars is too expensive for a movie?! This blows my mind! What, in your opinion, is a movie worth? Movie rentals at Blockbuster in the 80s were $3 and it amazes me that now, you can get movies without leaving home for the same price. We're talking about half an hour of work at minimum wage. This plan may not make sense for someone like you but if you think 3 bucks for a movie rental is "way" out of line for this service, I believe the market would disagree with you there.