Netflix Making Moves To Compete Against Apple’s Potential Macworld Announcement

Posted Jan 13, 2008

As Apple is gearing to introduce new movie services at Macworld, Netflix is preparing itself to face the potential competition.  Netflix is removing the limit for how long users can watch movies online through high-speed connections.  Netflix will introduce this change tomorrow.  Macworld takes place on Tuesday and the media is speculating that Jobs will introduce new movie content via iTunes.

Depending on each subscriber’s plan, Netflix subscribers could watch a certain number of hours online at a time.  For example, subscribers who pay $16.99/month is able to rent 3 movies at a time and can watch 17 hours of streaming movies per month.  This service is called “Watch Instantly.”  But with the new service Netflix is offering, subscribers can watch as much as they want to online. 

One thing that I can appreciate about Netflix is their ability to take on the big players.  Everytime they add a feature, Netflix retaliates.  Blockbuster starts mailing DVDs and gives the ability to return them in the stores; Netflix reduces their prices, adds the online streaming service, and expands their movie selection faster.  Apple makes deals with big movie companies and plans to add movie rental services; Netflix responds by adding the unlimited streaming services.  I’m definetely a happy Netflix customer.

Netflix is also partnering with LG Electronics on an initiative that brings the ability to stream movies from the Internet directly to HDTVs. 

“Internet to the TV is a huge opportunity,” stated Reed Hastings, Netflix’s founder, Chairman, and CEO. “Netflix explored also offering its own Netflix-branded set-top boxes but we concluded that familiar consumer electronics devices from industry leaders like LG Electronics are a better consumer solution for getting the Internet to the TV.”

[Information Source:]