Mon 14 Jul 2008
An alliance has been forged. Microsoft and it’s Xbox 360 has teamed up with Netflix to deliver downloadable movies straight to their console (check out a video of the announcement here). The deal includes 10,000 movies and tv shows and was announced Monday at the E3 Media and Business Summit in L.A., which I’m sure we’ll be invited to next year.
“This generation of consoles will change the face of home entertainment more than any other generation before,” said John Schappert, corporate VP of MSFT’s interactive entertainment division. This tool will help allow Netflix to move furhter from the computer towards the television screen, a line that was blurred even further after the success of Roku. This will allow more of Netflixs’ 8.2 million subscribers to stream video content and not be forced to watching it on the computer. About 8,000 more titles should become available in the next few months and Netflix is hoping this new venture is just as successful as Roku has been. Now if only someone could mention this new fangle technology called ‘the internet’ to the folks at Blockbuster they might be able to keep the battle for video home rentals alive, but much like the recent format battle, the companies that develop the best technologies and form the strongest alliances will go home the winners at the end of the day. As Blockbuster continues to sink further and further into a 10-year low stock price. I’ve been saying it over and over but Blockbuster has been making the wrong decision time and time again while Netflix continues to evolve and advance moving into every possible corner of the market it can. When it comes to streaming legal content online through second party devices I think Netflix takes the cake. “The company already has announced that LG electronics will include streaming capability on a Blu-ray DVD player that will debut this year.” Netflic CEO promised “at least one more major consumer electronics company will unveil a set-top box for Netflix before 2009.”
Netflix isn’t the only company embracing the future. This announcement came on a day when MSFT is trying to makeover the Xbox 360. With the HUGE success of Nintendo’s ultimate gaming device, the Wii, MSFT is trying to regain some the market share it has lost to its local rival (Nintendo of America’s headquarters is across the freeway from Microsoft in Redmond, WA). Moving from a hardcore gaming console to appeal to the ‘casual’ gamer the Xbox is becoming a “multipurpose entertainment machine to watch movies, TV shows, and listen to music.” With the demise of HD-DVD the ailing console has been needing a boost to bring it back into the limelight. While partnering with NBC/Universal to stream TV shows like “30 Rock” and movies like “The Bourne Supremacy” to the console might help, its ultimately going to be its diverse capabilities that draw the larger audience. If that doesn’t help get the attention of the average family then hopefully that $50 price cut will at least bring it within $100 of the cheaper Wii.
We’ll find out how Nintendo intends to counter this new development tomorrow when they take the stage for day two of the E3 conference, which as I said before, we’ll for sure be going to next year? That and ShoWest.