Netflix developing movie set-top-box with LG

This one's just coming across the wires, but apparently, Netflix is actually developing a movie set-top-box with LG Electronics. If you'll recall, there was quite a buzz surrounding such a device years back, but rumblings had remained largely dormant until a few months back. Slated to launch sometime in Q2, the networked player would purportedly allow owners to stream in movies for viewing on their television, and it's being reported that the feature would be "included in all of its various price plans... at no extra charge." Pricing deets on the LG device have yet to be disclosed, but we're told that the firm could "embed the receiver into its $799 dual-DVD player [likely the BH200]." According to Netflix Chief Executive Reed Hastings, the LG partnership will hopefully be "the first of many such deals" for the company, and he added that he'd love to "see a hundred Netflix-capable boxes," suggesting that there could be deals struck with internet-connected gaming consoles as well as cable / satellite providers. We'll be keeping an ear to the ground for further details.

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[JuggleNuts @ Jan 2nd 2008 9:46PM]

I knew this sort of thing was coming, but I'm honestly a little surprised that it's happening so soon.

No wonder estimates say the internet pipelines will be clogged up by 2010!

[Cody @ Jan 2nd 2008 9:47PM]

really looking forward to this one

[Rob @ Jan 2nd 2008 9:50PM]

Well, this would be nice as long as Netflix allows you to watch them in the same manner you're capable of right now. Free of charge as long as you stay within your alloted time. But, that's almost 8 plus movies depending on your plan. Very nice indeed. Now, the box would be another thing which hopefully won't hurt people in their pockets too much.

[erose @ Jan 2nd 2008 9:54PM]

Now Netflix just needs up improve their "watch instantly" selections. My word, they have some pretty bad movies on that program. I use it a lot, and I've pretty much seen anything worth watching. I think they purposely chose the worst movies ever made, so it would keep the demand on their servers low. There are movies there that 1) I never heard of because 2) they should never have been made. But if they start pumping out set top boxes, maybe that will be their impetus to offer all their movies that way. You'd think it would be cheaper than shipping 1,000,000,000 DVDs a year all over the US. I also like the idea because it puts the Watch Now on the TV, instead of the computer. So go for it Netflix, I'll order one.

[Jeff @ Jan 2nd 2008 11:03PM]

It's not Netflix' fault. You think they want to offer crap in what should be their marquee area? You think they don't *know* they've got crap in there?

The problem is the movie studios. a) they want more money for download licensing, and b) that's assuming they even have those licenses to give. Xbox Live has the same problem, and you're about to see iTunes dealing with it too - we're hearing about all these deals with Fox and possibly other companies, but what you're actually going to see are something like 30-40 new movies per year per studio, all of them new releases. They'll probably fill out the lineup with old crap, just like Netflix has been forced to do.

Download rights are a huge thorn in everybody's side right now. You've got the writer's strike going on right now that's all about that, you've got a whole lot of contracts that were signed years ago with no provision for download rights, you've got other contracts for major movies that say the major stars have a say over their likeness used in "new mediums" that may not have existed when the movie was made. It's a mess.

[teltac @ Jan 3rd 2008 7:33PM]

The reason they have such a bad selection of movies in the "watch it now" section is there is chain of waiting that has been in place for quite some time. It starts with DVD's (they get the movies after they leave the big screen), then the pay channels like HBO, Starz, Showtime, etc get exclusive rights for the ones they pay for, then the lower tier channels like TBS, USA Network, CBS, NBC, ABC, etc. get it next. Hence you have to wait a long time for most of the newer movies. I'm sure Netflix is working on getting new movies sooner but for the near future that's how it works.

[Mike K @ Jan 2nd 2008 9:58PM]

I have posted a screen shot provided by Netflix of the LG interface at HackingNetflix.com. I spoke with Netflix CEO Reed Hastings earlier today, and he said that they want to see 100 devices that are Netflix-capable.

Screen shot: http://www.hackingnetflix.com/2008/01/netflix-lg-part.html

Not sure if the viewing will be unlimited or capped at 17 hours (they're testing unlimited with a small number of customers now).

No details on the box yet (HDMI, Hard Drive, etc.).

- Mike /http://www.HackingNetflix.com

[patsy @ Jan 2nd 2008 11:01PM]

OK, here's a scenario of what a company that actually gave a shit could do, instead of endlessly fucking around with proprietary players that only work when all the stars align right and you're sitting at your desk. How about implementing a UPnP server application that serves up the Netflix Watch Now movies to any UPnP client on the network, thus making using the service actually CONVENIENT? There are now a bunch of STBs with that capability, including even some newer TVs. Nothing really would change in what the user can do with their st(r)eaming movies in the ways of illegality, other than making them actually convenient to watch. But yeah, I know I'm dreaming.

[Mike K @ Jan 2nd 2008 10:04PM]

Erose,

Netflix doesn't pick the movies for Watch Instantly. The studios signed 5 -10 year distribution contracts (like Indiana Jones), and thus Netflix (or Movielink, Cinemanow, etc) can't show them online.

The studios are hopefully getting smarter with the new releases and we'll see more that have a shorter Internet viewing window.

- Mike / http://www.hackingnetflix.com

[Constable Odo @ Jan 2nd 2008 10:11PM]

Nice. Good to see they have their eye on the fruit. If they don't sell at least 400,000 units they'll be considered a bigger failure. If this download to watch keeps up, everyone will need a fat pipe. Now if only Verizon FiOS would show a little love to my neighborhood.

[Graham Green @ Jan 2nd 2008 10:16PM]

Sounds a little like VUDU if you ask me. Buy a vudu at www.vudu.com.

[Kyle @ Jan 2nd 2008 11:56PM]

bad vudu commercial.

netflix is nothing like vudu. you'll be able to watch netflix movies at a flat monthly rate, instead of paying per movie with vudu.

[graham green @ Jan 3rd 2008 12:17AM]

not a commercial...just really like the project. And who is to say that netflix will remain that way, once they get their box built. And none of their movies are new releases or in HD

[roole @ Jan 2nd 2008 10:21PM]

Why haven't multi-thousand dollar HDTVs become devices with built-in wifi (b/g/n) by now, opening up all sorts of similar technological possibilities? After all, it must cost all of a couple of ten dollars extra?!

Why can't these guys innovate to open up new tech possibilities, instead of constantly death-battling each other on a losers' game of size (larger), pixels (more), and price (lower)?

[Salsa Shark @ Jan 3rd 2008 1:14AM]

Netflix has more pixels than Blockbuster?

[Z @ Jan 2nd 2008 10:48PM]

F-I-N-A-L-L-Y!!!

This is GOOD news! I've been waiting for Netflix to get a set-top box forEVER. Who wouldn't love to have access to all of Netflix's movies immediately (well, faster than waiting for a delivery in the mail, anyway)?

Of course, there's the issue... If they're going to do this, Netflix better be smart enough to know that they're going to have to offer their ENTIRE catalog of movies and TV-episodes-on-DVD for this to work. If they're merely going to stick to the pathetic selection they offer with their current "Watch Now" feature online, then their efforts will fail, and fail miserably.

So Netflix: Offer your ENTIRE catalog. That's the only way this will work. Mark my words.

And now we wait... Hopefully, not for long.

[Z @ Jan 2nd 2008 11:45PM]

OK, now that I've thought on this a bit more, they wouldn't have to offer their entire catalog, but they'd need to offer a very good percentage of it - at least to start. I'm thinking 25% of the best titles - which would have to include TV episodes.

And it would have to handle HD, as well.

[superrrguy @ Jan 2nd 2008 11:03PM]

I was really hoping this would work through the XBOX. I was a Netflix member back in the day and would totally return if I could watch movies on my tv on demand but I don't want another settop box and neither does anyone else. That's why all these other service keep dropping like flies. I don't even have another input to use on my tv.

[JuggleNuts @ Jan 2nd 2008 11:51PM]

Sounds like someone needs a good A/V receiver.

[Shopkins @ Jan 3rd 2008 9:30AM]

If NetFlix could have got in with Tivo, this service could have really taken off with an established hardware base. If they integrate it into their 2nd or 3rd gen HD/Blu combo (and the prices creep down a bit more) then I might bite (I have a BDP1000 and A2 I'd like to consolidate), but I don't think it will catch on the way it could have if they'd worked a deal with Tivo and their established hardware base before Amazon did.

[Trae @ Jan 3rd 2008 11:33AM]

Yes, that's why this:

[quote]there could be deals struck with internet-connected gaming consoles as well as cable / satellite providers.[/quote]

Is so important for this to succeed.

[JayMonster @ Jan 3rd 2008 9:38AM]

Perhaps I missed it somewhere, but I am sort of suprised they didn't try and revive the partnership deal they had brewing with Tivo.

[Trae @ Jan 3rd 2008 11:32AM]

The only way this will stay afloat is the deals with satellite and cable companies.

Only the techies like to have 15 different boxes by their television. The average user has a TV, DVD, TV/SAT Box, and AV at the most...and most probably don't have the AV box either. They have to have the option integrated into the average users existing box. Else this will be a money loosing deal.

TiVo's realizing similar that they can't be the "additional hardware" and make money off of it. TiVo's move (ie Comcast) with a move into other Cable/Sat deals is the only way to keep them afloat too.

Netflix must realize this before they make a money losing approach into hardware that will suck any free cash flow they currently have. Only putting this into hardware I already have will pull market share away from Blockbuster TA.

[Bob @ Jan 3rd 2008 3:59PM]

I hope the even bigger news becomes a reality when/if Netflix gets this working on gaming consoles by year end:

http://www.techconsumer.com/2008/01/03/netflix-tv-boxes-coming-soon-netflix-via-gaming-consoles/

[longhairbilly @ Jan 3rd 2008 5:03PM]

I would think consoles would be a better bet for Netflix over a set top box. Most people have, or with price drops, will have a PS3 or Xbox in their home at some point.

Allow me to rent movies thru my 360 and I will sign up day one. Require me to spend $800 and I'll stick to the mail.