Reuters reports that Netflix has teamed up with LG and three other manufacturers to offer set-top boxes for online movie delivery. If this new service is implemented properly, Netflix could sell subscriptions to millions of potential customers who do not use a computer at home.
Netflix already offers online movie viewing, but the feature requires a computer that runs Windows Media Player 11 or better. A set top box would eliminate the computer requirement. No word on whether the boxes will let users browse and order movies through the television, but Apple already supports these features with its set top box.
The new boxes will arrive in stores by the end of 2008. Consumers will need a Netflix account and a high-speed Internet connection. Cable and telecom companies might see new broadband subscribers who don’t have a computer, but some customers might drop their premium TV channels to afford Netflix.
The biggest losers will be the US Postal Service and Netflix depot employees. USPS gets a nice chunk of revenue from Netflix mailers, and the depot employees receive, sort and stuff mailers in over 30 locations, including Honolulu. Online movie delivery would make the mailers obsolete.
Related posts on billso.com
- 17 January 2008: Netflix lifts limits as Apple enters online movie rental market
- 12 November 2007: I want a better television — but it’s not ready yet
- 8 June 2007: Amazon may buy Netflix
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