Netflix Exec Joins Microsoft - Takes Over World
So I've been flying around the office lately and haven't gotten a chance to post about Reed Hastings joining the Microsoft board, but I've got to comment on it. This is the most important announcement of absolutely no actual consequence that's come out in a while. On one hand, no actual deals were included in the announcement, and there is no reason to read too much into board appointments. On the other hand you have the man who dreamed up the most successful movie rental system ever coupling with the company leading the pack in online video distribution.
Now, what has literally gotten my heart pumping a little harder is that Netflix has recently been pushing into digital download alternatives. The missing element until now has been a hardware solution to get their catalogue in your living room. It doesn't take a genius to put this one together...
Couple this with the plans to roll out IPTV on the 360, and quite literally you have the holy grail - the living room's media centerpiece. Movies, television, gaming, and all of your media content streamed from your computer to your living room. Checkmate.
The sickest part of all is it's probably Steve Jobs that made this all possible - iTunes (which to be fair, still controls the vast majority of paid digital downloads) got people accustomed to getting their media from the internet. It wasn't that long ago that people actually wanted to see their physical collection of CDs and DVDs on a shelf. That time has passed.
So, if all these dreams of grandeur come to fruition, the question becomes how Microsoft can convince people that have zero interest in gaming to pick up a 360. I say they don't even try - just start manufacturing a pared down box that doesn't even play games. Tell people they can get cable for less than they pay now, full DVR functionality, and access to the most comprehensive catalogue of film anywhere in the world anytime of the day all in one-set top box. Oh, and don't worry about that silly $1000 Blu-Ray player (or $600 PS3...) - you can just stream HD content direct to your television.
This is a potential game changer (HA! Get it? ... God, I'm dumb) - everyone involved in the entertainment sector should keep an eye on this.
- Mike Raffensperger's blog
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Comments
Mike, great post.
March 28, 2007 - 1:47pm — Dale (not verified)Mike, great post.
Mike- What I fear, is
March 29, 2007 - 10:02am — Todd Howard (not verified)Mike-
What I fear, is they'll (cuz they're MS) probably turn to selling "the same" 360 that everyone has, hobbled to only stream the movies, and then try to cross sell you into the gaming portion with on screen adverts or some other method of coaxing non gamers into becoming gamers, and if you click the li'l button, it will upgrade you to gaming and charge your card and give you automatically that one game that everyone wants (whatever that might be) right there on the drive in an encrypted file that will be freed when you click the li'l button.
Then kids all over the world who don't have a gaming console yet and their parents decide to get the "MSNflix360" will find their way to that li'l button and convert it to a gaming box, charge their parents the $200 more for that conversion, and ... wait.
I've had too much coffee for it to only be 9:51 am.
GO MS! err...
Well, I love Netflix, but for the convenience and the website, not the model and certainly not for the oft PB&J smeared DVDs that come to my house in red envelopes. (PB&J is a euphamism) I'd much rather stream this stuff on demand - and still buy the "special edition box sets" with tons of extras of the films that I feel I truly must own. Although I don't see myself ever buying a Microsoft hardware box to do it. That'll be the day...
BTW: We have to keep the DRM discussion alive. These companies (who know we love our programs and movies) are securing (read: have secured) ways to preserve their outdated-oumoded business model and the existing architecture and make the fat wallets fatter still. What can we do about this?
I'll take this into another post or offline... great post Mike... more later when the Starbucks Tide recedes. 8-] -Todd
Haha, well being one of the
March 29, 2007 - 1:22pm — Mike Raffensperger (not verified)Haha, well being one of the only guys who doesn't like to jump on the "MS=Evil Borg Overlords" thing I'm not sure if I agree with you or not... MS has done some pretty crappy things to their customers - they've also done some really good things. I'm not sure offering a gaming upgrade option on this "MSNflix360" (lol, love that) is such a terrible thing. All of this is so speculative at this point - it's still possible none of this evolves into anything (though, I think it will...)
I just can't get over the pipedream of having the universe of film, on demand and in your living room 24/7 - thats an entertainment experience just about everyone has dreamed of at some point. I remember reading somewhere (to lazy to look it up), that the Netflix online system worked on a per-minute basis. So, you pay your $15 a month or whatever, and you get 300 minutes of viewing to "spend" on whatever you want. Start a movie that sucks? No problem, just stop after the first 15 minutes and save your credits. I think that's a model that is pretty lucrative from a business standpoint, but also pretty appealing for consumers. Maybe it's just me?
Now... If you want a see a rumor that really would make MS a greedy and stupid business check this out - http://www.destructoid.com/microsoft-hearts-capitalism-shiny-rocks-does-not-heart-free-content-sunshine-30592.phtml. If it proves to be true, I'll go ahead and start hating MS too.
Now, no more coffee! ;)