Following our recent coverage on Netflix and its business model, I was pleasantly surprised to see Netflix’s announcement today on NYT about adding a feature that enables their users to stream movies. Here’s a video demo from Netflix’s biggest fan and critic — blogger Hacking Netflix!
I did check my Netflix account and couldn’t see that feature — a PLAY icon, right next to your ADD icon next to each movie; all it takes is a Netflix piece of software that needs to be downloaded on your sytem — one time.
Like most other electronic distribution services, Netflix’s system will work initially only with a limited catalog. The bulk of Netflix’s subscribers, who pay $18 a month and are allowed to keep three movies at home at all times, will receive 18 hours of free watching every month.
That’s a good start… Seems like a good counter-move to the immediate gratification principle touted by Blockbuster:
We have everything that Netflix has, plus the immediate gratification of never having to wait for a movie – John F. Antioco, CEO Blockbuster
While Mr. Reed Hastings, CEO Netflix, contents that
Netflix has a product that compares well with those of his competitors. He particularly emphasized Netflix’s business model — free to subscribers — and its focus on instant gratification.
Source: NYT Article — Netflix to deliver movies to the PC
Is immediate gratification the key to success in this competitive home-video market?
Filed under: Uncategorized
Mario Sundar's Speakeasy 
A wise move from Netflix. I would expect BB to offer something similar down the road.
Note: I think some customers probably don’t want to download special software to watch the movies.
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Yes, immediate gratification is it.
Considering the competition from Cable Video-on-Demand and the future of apple, google, verizon, at&t, xbox360, the venice project (now Joost).
and Community too! 😀
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Hell yeah! I actually just signed up for blockbuster online for the two week trial because I figured the in-store thing would be too hard to pass up (even though I canceled it before to move to netflix). Now, I seriously doubt I’ll be moving along…
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Hi Mario,
Isn’t BB part of Viacom (used to be)? Couldn’t they start providing exclusive content to BB via MTV, etc. ? Just a thought…
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I don’t think BB is a part of Viacom, Damon. Even if they did, they would be shooting themselves in the foot by partnering exclusively w/ BB while the rest of the world still debates other alternatives. Yep, they no longer are a part of Viacom: http://media.www.thebatt.com/media/storage/paper657/news/2004/02/11/News/Viacom.To.Shed.Blockbuster.Stake-603358.shtml?sourcedomain=www.thebatt.com&MIIHost=media.collegepublisher.com.
Well, looks like the 2 Mario’s agree on something 🙂 Mario, so when are you starting your own blog?
Paul,
If the in-store thing was your key criteria, I think you’ll be a satisfied customer w/ BB. Unless I hear otherwise from you on a Kohl’s style expose. Good job, Paul, on your investigative journalism.
Also, congrats on the success of your podcast! Way to go!
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First I’m getting my business site up (just a construction page up for now), then add the WordPress blog focused on consumer product goods, product dev & design, and marketing.
Paul, that was a great Kohl’s story. PR was back to you quickstyle! I’ll have to check out your podcast.
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Hi Mario,
I guess I should check some things out first;-)
Regardless, I think BB could do a lot on the branding front with BB. I don’t think that exclusivity is entirely a bad thing…
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Mario,
I can’t wait to check out your new blog.
As for Paul’s story, looks like there’s an interesting twist to it. Check out his blog post here: http://heehawmarketing.typepad.com/hee_haw_marketing/2007/01/the_kohls_backl.html
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