Netflix is forging a new weapon to employ in its eternal war against Blockbuster. Or, depending on one’s point of view, it’s creating a nifty new product for its customers. The item in question is an Internet-connected, set-top box that would download movies overnight, eliminating the (small) hassle of mail service.
Netflix has been in business since 1999, and is the dominant company in the online movie market, claiming 4.9 million subscribers. Blockbuster, which only began offering online rentals in 2004, has won over 1.3 million subscribers. The two businesses have been trading lawsuits for some time now, but Netflix’s new product could give it an even greater advantage in the eyes of consumers.
Eric Besner, the vice president of original programming at Netflix, made the announcement on Friday. At the Independent Film and Television Alliance production conference, he said the service could launch by the end of the year. Although Netflix hasn’t yet created a business model, Besner expected the fees associated with the set-top box would be comparable to current subscription prices.
Netflix’s box is earning comparisons to the MovieBeam service, through which “movies are beamed wirelessly into your home using MovieBeam’s patented digital signal and the sleek MovieBeam Player.” It’s possible the two companies will collaborate on the project, or Netflix may be setting itself up as a competitor.
Keep an eye out for this service. When it launches, it should make the already-simple matter of getting movies online even easier. And it may help Netflix further dominate the online movie rental market.
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Doug is a staff writer for Murdok. Visit Murdok for the latest eBusiness news.
