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Jul-05-2008Netflix box by Roku to get more content providers(topic overview)
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Each also has about 100 HD movies available. The lack of a hard drive in the Netflix Player is part of the reason it's so cheap, but it's also behind its one really annoying feature: reversing and fast-forwarding takes much too long. Since it takes up to a minute for the box to "find its place" in a movie by downloading the content from Netflix, skipping back 10 seconds to listen again to a missed line can take much longer. For me, the low price was an effective dose of Gold Bond powder on this irritation. Starting a movie takes up to a minute? Yes, but hey, it's cheap! The picture quality varies a great deal, and there's no HD? Yes, but you can't expect the world for $8.99 a month. Roku's box is just the first of what Netflix hopes is a whole family of products that get movies from its Web site. LG Electronics is planning to include the streaming capability in a Blu-ray DVD player later this year, and two other unnamed manufacturers are bringing out set-top boxes. I don't see a big reason to wait for them. Even if the Roku player sacrifices a few things to limbo under the $100 price level, it's a no-brainer for the 8 million-plus Netflix customers out there. If you're not one, this is an added reason to become one. [1] The small-form Roku device may not be much to look at (little more than a paperback-sized black box), but it grants Netflix customers to the unlimited access of DVD-quality movie content from a 'Watch Instantly' collection of around 10,000 titles -- and all for just a one-time fee of $100 USD (on top of the customer's existing subscription package). Although some may point to those 10,000 titles as only representing around 10 percent of the total movie catalogue presently available through Netflix, the increased manufacturing demand and the fact that Roku's box costs approximately $130 USD less than Apple TV certainly help confirm the heightened customer interest. The partnering of Netflix and Roku comes after Netflix CEO Reed Hastings outlined an industry expectation that conventional DVD rentals will peak in around 2013, which subsequently saw the company inject around $71 million USD into its own technology and development lines during 2007 -- a marked 48 percent increase over the input for 2006. Beyond its deal with Roku, Netflix also has a broadband movie download deal in the pipeline with LG Electronics, which will see customers able to directly access high-definition movie content through an HDTV set-top box.[2]
Released several months ago as a part of Netflix's increasing emphasis on all-digital content delivery, the Netflix set top box by Roku will soon be streaming content from other providers. Roku's set-top box definitely hit a sweet spot with consumers, at no additional fee to Netflix Ultimate subscribers other than the $99 cost of the hardware, Roku reportedly sold out of its initial shipment of devices in just three weeks. Though the Roku box delivers sub-DVD picture quality, and only 10% of the Netflix catalog is available for streaming, its popularity appears to follow a common theme in consumer electronics: If a device is cheap enough, people will be willing to sacrifice quality.[3] Roku has announced that it will be bringing more streaming content providers to its new set-top box soon, allowing users to have more content than just movies and TV from Netflix. The Roku box has been very popular since its release, even though only 10 percent of Netflix's content is available for streaming and the quality is just under DVD.[4]
Saratoga, Calif. -based Roku, best known for its networked music player SoundBridge, in May rolled out a set-top box that streams Netflix (nasdaq: NFLX - news - people ) movies. The company, in which Los Gatos, Calif. -based Netflix owns a minority stake, says it sold out its first shipment in three weeks. To keep up with demand, Roku has ramped up production in its factory in Asia and is air-freighting units to the U.S., says Tim Twerdahl, Roku's vice president of consumer products. Twerdahl wouldn't disclose sales figures, but he says Roku calculated initial shipments based on sales of competing digital delivery products such as Apple (nasdaq: AAPL - news - people ) TV and Vudu.[5] More pointedly, Los Gatos-based Netflix joined with digital media company Roku in May of this year to produce a set-top box capable of streaming Netflix's 'Watch Instantly' movie selection directly into the home, and it's a service that is proving popular with Netflix users. According to Forbes, initial shipments of the Roku set-top box sold out within three weeks, which duly left Saratoga-based Roku having to significantly increase production levels through its fabrication facility in Asia in order to meet rising consumer demand.[2] There are also rumours floating around that Netflix has something in the development oven through American software corporation Microsoft's Xbox videogame console division. From Roku's perspective, the set-top box manufacturer has said that its player will not remain restricted to Netflix content and will expand via a software update to include content from other major media players before the close of 2008. The Netflix Watch Instantly service is currently supported by major movie studios such as Universal Pictures, Sony Pictures, Metro Goldwyn Mayer, 20th Century Fox, Paramount Pictures, Warner Bros., Lionsgate and New Line Cinema.[2]
Moving to NetFlix was a dream come true, paying a monthly fee to watch as few or as many videos as I wanted.'' That I could turn on the laptop and watch a wide assortment of movies at a moment's impulse (and not have to worry that AT&T would catch me downloading, as I do with BitTorrent) was an added bonus. Of course, you're probably aware of the set-top box, the Roku NetFlix Player, that offers NetFlix customers the ability to watch on-demand movies from their TV set, instead of being tethered to their computers for the experience.'' The most amazing part about this is the price of the device.''[6] Sony's PS3 will is a fine set-top box for media delivery, as is the XBox 360. My Comcast box has 30 high-def movies available for free on demand, along with their PPV offerings. Netflix has rolled out a set-top device manufactured by Roku to combat these players, and it has generally gotten good reviews. The problem is that this device is just another set-top box. It streams, and does not store media, so watching a film becomes a function of good bandwidth. With cable companies threatening to meter bandwidth, this type of delivery may become more expensive for all players.[7]
Forbes cites the size of Netflix's streaming library as "the major hurdle" for the Roku device. Fortunately, this sort of hurdle can be cleared easily with consumer patience, especially with additional content support. As far as a shallow pool of content is a problem, it is nothing like the problem D-Link faced with its DivX Connected platform. That particular set top box allows a user to stream full HD DivX and Xvid content from his computer to his TV, and originally offered streaming HD downloads. In its European launch, the device featured a prominent partnership with Stage6, an HD content delivery service which is now heralded as one of the greatest defunct Web sites in recent history. DivX Connected just celebrated its official launch in the U.S. without Stage6, its only content provider.[3] Netflix isn't saying who the new partner will be, or how long until the Roku will support it, but some speculation suggests it could be other companies known for streaming content or getting in on the action, like YouTube or Apple. Netflix does make their money selling content they provide, which some would think would exclude them from having other providers hop on board with their device. The inclusion of other providers might be somewhat forced: It seems that companies like Microsoft and Sony are preparing software solutions for their respective consoles that could access Netflix's on-demand service.[8]
Gizmodo claims that while the Roku's display outputs currently max out at 420p/i, the boxes being sold now need only firmware upgrades to enable HD and 5.1 audio support. The real quality issue is that Netflix, like most streaming video providers, chooses video quality based on bandwidth test and makes the assumption that users would rather have instant access than wait a while to buffer at the highest-quality (or to make the choice on their own, God forbid). It probably doesn't work for Roku (yet, maybe never given it has no hard drive) but there are guides to capturing the link to the highest-bandwidth (presumably highest-quality) video stream available. (you must still watch through WMP as this has nothing to do with stripping the time-limited, individualized DRM keys).[3]
There were no hiccups. Image quality was indistinguishable from a DVD. The major hurdle facing Roku's player and other set-top box products in the pipeline for this fall is the size of Netflix's streaming library.[5] Vice president of consumer products at Roku Tim Twerdahl recently disclosed that the Roku box will soon support "major content providers" other than Netflix, something none of the other streaming set-top boxes can yet offer.[3] The company is saying there could be more where that came from. Roku's vice president of consumer products, Tim Twerdahl, said Wednesday that, yes, more content partners are coming, but, no, he's not saying who just yet. That makes the $99 price tag look that much more attractive. Who will it be? YouTube seems obvious, as they've been partnering with a bunch of hardware makers lately: Panasonic, Sony, Apple, Hewlett-Packard.[9]
It's the big horse race in the gadget market this year: Who's going to win consumers' hearts with a box that brings Internet movie downloads to the TV set? Now, we have a tiny box that deserves to be a winner. Roku Inc., a small maker of Internet-connected media devices, this week introduced a black box that grabs movies and TV shows from Netflix, the DVD rental-by-mail pioneer.[1] Pick a movie using the included remote, wait a minute for the download to start, and then watch on your TV. There are couple of other boxes on the market that do the same thing, including the Apple TV. The Roku Netflix Player, which is half the size of a Nintendo Wii, isn't really better than any of them, but it has one tremendously attractive feature: its price.[1] The Netflix player gives Netflix ultimate subscribers the ability to stream Netflix movies to their TV directly from the internet with no computer middle-man. Plus, according to Tim Twerdalh, vice president of Roku, this is only the beginning.[10]
Start-up Roku is looking to save DVD rental giant Netflix from the pending video-streaming attack. Saratoga, Calif. -based Roku, best known for its networked music player SoundBridge, rolled out the tiny $100 black device that can stream the Netflix "Watch it Now" option directly to a television.[11] If you already subscribe to Netflix's DVD rentals, you pay nothing extra to watch as much Internet video as you want, as long as your monthly plan is $8.99 or more. This makes the Roku-Netflix combination a far better deal than its competitors.[1]
Netflix Chief Executive Reed Hastings has predicted that sales of DVD rentals will peak as early as 2013. That's why the company is partnering with set-top box makers and has also been investing in streaming video technology.[5] If the Roku set-top box success is any indication, Netflix should be in good shape to weather the looming streaming video torrent.[5]
The recently released streaming video box dubbed 'Roku' by Netflix is about to become a bit more attractive.[8]
I don't know about this converter box but technical specs aside the video from Netflix's instant play service looks indistinguishable from the video on a DVD when the Netflix streaming video is played on a standard PC.[3]
Rumors are flying fast that at E3 next month, Sony or Microsoft (or maybe both) will announce support for Netflix's "Watch it Now" feature as well, for the PlayStation 3 or Xbox 360, respectively. Though far more expensive than $99, both game consoles have large install bases, and are also far more functional beyond just streaming video.[9]
The tiny black device from Roku was introduced to the world in May as the first box that could stream Netflix's "Watch it Now" option directly to a television.[9] Twerdahl also says the Roku player won't be limited to Netflix. Later this year, a simple software update will allow the box to stream content from other "big name" providers.[5] When the support for other content providers hits, Roku will have the first box to offer content from more than one source.[4] Ron Galloway, who is keeping morbid tabs on the company over at HuffingtonPost.com, argues that Netflix is going to get eaten alive by Apple, Sony, and set-top box providers that offer video-on-demand.[12]
If I were creating a set-top box, I would have preferred to have made it on a more open architecture, or at least support open standards.'' As is often the case, nobody asked me before rolling out their product, and despite this, the NetFlix player has been immensely popular - they can't keep them in stock.[6] The word is now that Roku is going to start supporting other services aside from NetFlix on the set-top box.''[6]
The only possible advantage it could have is exclusives on content. Why would Sony/Universal/etc. allow this to occur? They wouldn't of course. It's hard to see how Netflix's set-top device will be an engine for growth. It may have good conversion amongst current Netflix subscribers, but why would anyone else get this box? Most folks already have at least 2 set-top devices, their cable box and their videogame console. That leaves DVD rental by mail. Do they do this now? You might very well think that.[7] Netflix basically owns the DVD rental by mail business, but in the realm of digital delivery it is just one player amongst others.[7] With major television networks and film companies progressively embracing digital distribution to enhance the delivery of their content, it's likely that the days of conventional DVD rental are numbered.[2]
DVD rental heavyweight Netflix is apparently not prepared to go down without a Roku-enhanced fight.[2] Netflix dies? Why? U.S. doesn't have broadband in many, many places so DVD rental is probably secure for another 10 years.[12]
While 10,000 titles isn't shabby, the selection is too small for film aficionados. Considering that the one-time purchase fee of a Roku box is approximately $130 cheaper than Apple TV, it's a decent alternative to watching DVDs that complements your Netflix subscription.[5] "Apple is selling/renting 50,000 movies and TV shows per day, many in hi-def," says Galloway. He makes a reasonable argument until you consider the fact that Netflix ships 1.6 million DVDs daily (according to the USPS) and grew its 8.2 million subscriber base by 21 percent last quarter.[12] Pirated bittorrent content still offers greater selection and higher bitrate quality. If Netflix can license TV shows and get their quality up to 10MB per minute, I would subscribe.[6] The unit, released in May as a way to access streaming Netflix content easily and play it on your TV, is supposedly getting an upgrade, with a mysterious partner entering the scene to offer even more streaming content that Netflix currently doesn't.[8] Currently AppleTV and Vudu still offer content from a single source. Netflix continues to add content daily to its streaming service and over time hopes to have most of its catalog available.[4]
Galloway also says Netflix' core business is rental by mail and that the company doesn't have a growth engine. Again, he's right. We've spent ridiculous amounts of time on the Netflix site, rating movies, looking at friends' ratings, and generally wasting absurd amounts of time; for better or worse, a Netflix account almost becomes an emotional investment, so it's more than just a plain old mail rental service. We don't deny that Netflix has its challenges -- including surging gas prices and creeping postal costs -- but the company isn't dying any time soon.[12] Thinking about the positions that these two offerings take, it seems like Netflix's advantage is perhaps the amount of time you have to watch your rental as opposed to Apple's "once you start a movie, you gotta watch it within 36 hours" thing.[6] If you're the kind of person who sits down once a week to a watch a movie straight through, that will cost you about $15 a month for four movies with either box. If you watch those movies in half-hour segments four days a week, you're paying more like $60 a month. Apple, Vudu and Amazon.com aren't directly to blame for their rental terms, which are set by movie studios.[1]
Vudu has managed to double the rental period on independent movies. Netflix, on the other hand, manages to skirt these onerous rental terms entirely by licensing the movies from the studios not for downloading, but for streaming. The downside to this model is that Netflix has fewer "big" movies available, and they take longer to show up after they leave theaters. Some of its 10,000 instant-view movies are exercises in obscurity, like the Italian horror movie "Planet of the Vampires."[1] A nice piece of Hardware that could have been, unfortunately i feel it will be shunned off by petty Internet provider Squabbles? Of course with a little Hacking i actually see more than just a movie rental box, perhaps a home streaming device in general.[4] When I connected the box to my Internet router with a cable, everything came down at 2.2 mbps. There's no surround sound, but if Netflix were to add that to its movies, the box would play it, according to Anthony Wood, chief executive of Roku.[1] The device retails for $99, and adds no monthly fees to your NetFlix bill. I've spoken at length in the past about my disdain for the general state of the home PVR market, and how all the devices that accept podcast content all have some sort of deep aversion to allowing playlists to be automatically generated (that " veg-factor " I spoke of last month). If the common wisdom is correct, Roku may be changing that dream into a reality (depending on how their plan is executed).[6] The online/stream selection was just plain miserable, so I sent Roku back and canceled with Netflix. Content is king, and there was none to be had with this combo. If they get that taken care of, I'll be back.[6]
Though Roku has not yet elucidated who the other providers will be, it is worth noting that certain aspects of the Roku Netflix player's software fall under the open source General Public License (GPL).[3] The Netflix dooms-day predictors for some reason ignore wonderful new discovery of U.S. broadband providers -- bandwidth caps! Hooray, you only get 5Gb A MONTH for up/download from Time Warner, and suddenly regular mail delivery method seems to be lively and cheap.[12]
Some time ago, NetFlix modified their pricing plans to allow unlimited streaming of their database of movies and TV series. This was the final nail on the coffin for my Hasting's video store membership.[6] Various TiVo Inc. digital video recorders will let you download movies from Amazon.com. The catch with all of these is that you have just 24 hours to watch a rented movie; if you need more time, you have to pay the rental fee again.[1]
I bought one of these, I must say I was expecting a lot more. It really isn't that special. netflix needs to up the codec quality of their vod catalog. I still prefer to rent apple itune movies and watch them.[3] On March 17th I wrote a post for the HuffPo called "Netflix Death Watch" in which I claimed that slippage in customer service would cause problems for the company. On that date their stock was $32. It ran to $40 that month, and now hovers in the mid-$20's.[7] In 2007, Netflix shelled out $71 million for technology and development--that's a 48% increase over 2006's expenses. A large chunk of that went toward its "Watch Instantly" Internet delivery system.[5] Internet delivery of movies is becoming an acceptable alternative to Netflix quicker than most imagined.[7]
Apparently consumers like the idea of a relatively cheap media player that streams Netflix movies free.[5] Throttling is something that Netflix admitted to long ago. At first, they throttled the users who watched their movies and sent them back quickly. Now they are moving to throttle everyone. Last night on the news, there was a piece about Netflix signing up thousands of customers recently, so it doesn't sound to me they are dying.[7] The box automatically pulls "instant" movies from your Netflix queue, but you can't add movies directly to the box.[5] The Netflix vids use the VC-1 codec, but the box can handle H.264 as well. Of course, because all of these players--Apple, Microsoft, Netflix, and Sony--are already trying to sell you videos, it's unclear why they'd want to provide a free competitor that's just a click away.[9] It doesn't support CC (closed-captioning). Too bad they cut corners and didn't add this support. I'd love to have this box but need to have CC. I'm very disappointed in Netflix. Hopefully their next model will have CC.[4]
At a download speed of 2.2 megabits per second, the maximum quality delivered by Netflix, "Heroes" looks as good as or better than a DVD. "Blade Runner" looks terrible at any speed, apparently because of low-quality source material.[1] I also found that if I connected the player to the Internet using Wi-Fi, the speed of the download varied between 1 mbps and 2.2 mbps, with an attendant change in picture quality.[1] HD would probably require a download speed of at least 6 mbps, and it might be tough to get it to work over Wi-Fi. The Apple TV and Vudu are less dependent on the speed of your Internet connection, because they contain hard drives that can store a movie for later viewing if the connection is slow.[1] Once you've decided on a movie to play--we went with The King of Kong documentary--it took 25 seconds for the film to start streaming on a wired Internet connection with a 10 megabytes per second download speed.[5]
Apple is selling/renting 50,000 movies and TV shows per day, many in hi-def. [7] TV shows include "Dexter" and "Heroes." You pick the movies on the Web site, using your computer, and place them in a "queue."[1]
Sub-DVD picture quality is not a given; although the content is transcoded from the originals, many of the TV shows come from HD source, and the codec settings for the highest-bandwidth streams yields roughly DVD-equivalent quality.[3] The service requires a fixed-fee monthly plan that tops out at around $40, and the selection is limited to 10,000 non-HD videos and TV shows.[11]
For $100, Roku supplies you with a diminutive black box, a remote, power adapter and a basic audio/video cable. While the box may be smaller than a paperback copy of Clear and Present Danger, its dull, utilitarian exterior doesn't win any aesthetic wars. Fortunately, it makes up for its lackluster looks with a simple set-up and interface. [5] The flagship car in GM's green product offering is the Chevy Volt, but the company is demonstrating that it's making fuel efficiency gains with other models as well. It looks like consumers are noticing too because sales numbers GM has released are showing improvement.[10] The company is hardly invincible, but all this doomsday " Netflix Death Watch " stuff seems a bit over the top to us.[12] I hope not. Personally, I prefer getting the DVDs in the mail--higher quality and I can watch them on any TV with a DVD player.[7] You attach the Netflix Player to your TV, and connect it to your home broadband connection over Wi-Fi or a cable.[1] Actually, Netflix's latest ploy to earn money through tv top devices could prove to be a disaster.[12]
In addition to Roku, Netflix has also partnered with LG Electronics and two other suppliers of set-top boxes.[5] I couldn't possible comment. I am neither long nor short this stock, but the life cycles of companies, particularly technology companies, fascinate me. Place a historical stock chart of Blockbuster over one of Netflix and the similarities in their growth stages are striking. Blockbuster was essentially felled by Netflix, who displaced their media delivery system.[7] Keep dreaming about the day U.S. broadband will get to the same level as in Japan, when fiber and DOCSIS 3 will allow 100GB a day limits to be under $50 and then, maybe, Netflix will start feeling gloom of online delivery flu.[12]
Wood also said the player is capable of high-definition video, if Netflix would provide it.[1] Almost a year-and-a-half old, only 10% of Netflix's DVD library is available for instant viewing.[5] Forget the video games console war between the PS3, Wii and Xbox 360 for a moment, and forget also the high definition format war which ended earlier this year with Blu-ray beating HD DVD to a pulp.[10]
SOURCES
1. The Canadian Press: Review: Netflix delivers Internet movies to TV
2. Roku provides Netflix with content lifeline - Entertainment
3. BetaNews | Netflix box by Roku to get more content providers
4. Roku bringing more content providers to set-top box
5. Netflix's Online Movie Dreams - Forbes.com
6. NetFlix's New Plan: This Could Change Things
7. Ron Galloway: Netflix Death Watch (Part 2) - Business on The Huffington Post
8. Netflix to bring more providers onto the Roku - TechSpot News
9. 'Netflix box' to carry more than just Netflix | Tech news blog - CNET News.com
10. TECH.BLORGE.com
11. Netflix movies streamed via Roku set-top box - Original Technology: The Post Chronicle
12. Our Anti-Netflix Death Watch Watch | Epicenter from Wired.com
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