What I'm talking about, of course, is their own downfall at the hands of mainstream VOD. While we all fell in love with Netflix, and stared in awe at its brilliant, innovative business model, deep down in the back of our minds, there was a thought...
Isn't this physical act of needing an actual DVD - this round, plastic disc, to watch a movie (let alone mailing them back and forth) - going to be a bit too cumbersome for this rapidly evolving digital generation? Hasn't the technology advanced enough that we can just stream and/or download movies directly to our entertainment center devices?
The answer to these questions, of course, is YES. On demand videos and movies is certainly nothing new, as cable and satellite companies have been offering them for years. So why doesn't Netflix (or somebody else) simply allow you to zap your movies instantly instead of sending discs back and forth through snail mail?
Well, there may be several answers to that question that have to do with quality, HD quality, device deals and studio licensing restrictions. I am not an expert on these things but certainly the last two are bigger issues than the first two.
BUT... they're on their way. Netflix has kept themselves at the forefront of this circuit, doing their best to ensure that when the kinks get worked out and all parties involved are ready for this, THEY are the ones sitting there, ready to deliver.
They started by launching their "Watch Instantly" feature for select films, allowing the subscriber to stream movies on their home computer. Then, and this part is key, they made deals with the likes of TIVO and Sony Playstation to allow subscribers to watch anything from their instant queue on their television set by accessing it through their HD Tivo or PS3.
I recently ventured into this world for the first time and was thoroughly impressed. As a proud owner of both a PS3 and HD Tivo, I could use either, but elected the Tivo (will experiment with the PS3 in the future). The movies played instantly (no waiting for a download like Amazon's VOD). And the regular Tivo controls worked the same exact way as if it were a program that was saved in my Now Playing list on my Tivo.
There were two key drawbacks:
1. The video quality was not perfect - this one was not a big deal to me because it's only time and technology holding it back, two things that we are guaranteed to get past. The quality wasn't terrible - it was definitely watchable - it just wasn't quite up to the standards of a DVD or blue-ray. Also, on my 52" LCD, the flaws in the resolution were more apparent. I'm sure on a 42" or smaller, you probably wouldn't even notice it.
2. The second drawback is the selection of titles that are available - Netflix only makes a percentage of their titles available for instant streaming and big hits and new releases are almost never included. This has been the case since they first launched the "Watch Instantly" feature a couple years ago.
So what's the solution for problem #2? Well, as noted before, there are legal and financial reasons that have to do with studio licensing and Netflix's "unlimited viewing" model. Where do the answers lie? I'm not sure. But I do know this - We'll get there. The masses won't stand for it not happening. These developments will be the next major change in the home video world. It's not good enough that we don't have to drive to a video store anymore. People want instant access and won't put up with mailing DVDs and waiting 3 days for your next movie, especially when they know the technology is out there. So I know we'll get there and we'll get there soon. How it gets sorted out, I'm not sure. But I do know this - Netflix is positioning themselves to be the one to give it to us. Smart move. If only Blockbuster had this foresight back before Netflix came along to rain on their parade.
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