Tuesday, January 16, 2007

Netflix launches online video service

Netflix just announced they are launching an online video service (NY times article). They aren't the first (iTunes, Amazon and others were), but I believe they are going to be more significant for one big reason: it's free. Current Netflix subscribers will get up to 18 hrs of free movie downloads (depending on their monthly service package). This will help move 'movie downloading' from an activity that is for 'early adopters' to the mainstream.
I've watched my fair share of online video (mostly TV shows), all of it free. But compared to watching the content on my TV screen, it just doesn't compare. 19 inch screen vs. 60 inch screen. Office chair vs. my couch. No contest.
Now, there are several streaming devices that will allow me to stream video from my PC to my big screen, but I've got to fork over several hundred dollars for them. I just don't watch that much video on my PC for it to be worth it.
So here's why the Netflix announcement is so important: if I were to watch up to 18 hours of video **free** on my PC, I might consider one of these devices. This would improve my online video experience, thereby leading me to use video downloading even more, maybe even paying for it. Netflix has the opportunity to expose millions of new users to movie downloads.

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