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Netflix announces $100 set top box

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Posted Tuesday, 20 May 2008

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I predicted this in my 29 April 2008 billso.com article: Netflix is unveiling a $100 set-top box today. The device is a 5-inch square box that hooks into a broadband Internet connection and streams movies from Netflix. A 1 mbps connection seems adequate, although HD movies may require more pipe.

Customers won’t need a computer to manage their Netflix account or view movies, as the box also connects to TVs and home theater components via component TV cables and HDMI.

Roku is one manufacturer that was already been revealed in the AP article. We already knew about LG. Others are coming. Read the AP story for more details. Reviews from Wired and Cnet, along with pictures of this rather ordinary looking black box, are available from this brief Engadget article.

Netflix to deliver movies with set-top boxes

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Posted Tuesday, 29 April 2008

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.