Bob Wallace's Blog  

Bob Wallace

From the people at NetFlix Inc. (NFLX), the company that knocked Blockbuster into virtual irrelevance with their mail-order DVD rental service, comes a free way for members with gaming consoles to download a wide array of TV shows and movies over the Internet.

While service providers are struggling mightily to come to grips with video over the Web, companies without TV networks, NetFlix first and foremost, have what it takes to make it fly ... and likely substantially grow their customer base in the process.

Lost in a nearly pitch black sky of red ink, layoffs, and corporate collapses, is a twinkling star that is NetFlix. It was clear when it launched its business that it would bring innovation to the markets it entered.

It continues to do so. Netflix and Microsoft Corp. (MSFT) last week announced that one million Xbox LIVE Gold members have downloaded and activated the groundbreaking Xbox LIVE application from Netflix since the alliance launched last November. In less than three months, the Xbox LIVE community has watched 1.5 billion minutes of movies and TV episodes instantly.

Why? Because Xbox LIVE Gold members who are also Netflix unlimited members can watch movies and TV episodes streamed instantly from Netflix on Xbox LIVE for no additional fee. NetFlix already has more than 9.6 million subscribers.

You buyin’ this? The key here is if you’re a member of both. YOU DON’T HAVE TO BE!

How’s that for a value proposition?

The Netflix application offers Xbox LIVE Gold members the ability to instantly watch movies and TV episodes from Netflix on a TV via the Xbox 360 video gaming system. Xbox 360 is the only gaming and entertainment console that lets viewers instantly watch movies and TV episodes streamed from Netflix.

Sure, Xbox has other content partners, but NetFlix has made itself a household favorite with a loyal and happy customer base.

NetFlix claims more than 100,000 titles on DVD and 12,000 movies and TV episodes available to watch instantly.

Xbox Live, for those unfamiliar with it, is a membership-based, online network that Microsoft says connects 17 million members across 26 countries to each other and entertainment.

So what’s the next set-top box going to look like? A gaming console as we wrote about two years ago this month.

Shameless self-promotion? Nope. If you don’t believe me, check out the lowdown from the top industry experts at The Diffusion Group. They get it. Bigtime.

Service providers should too. Partner away!

User Comments !

This is absolutely the future. I can't remember the last time I hired a DVD from a store. Even the personal development material I use is all online.

If 2 companies can put there heads together to guarantee greater success, good luck to them. This is a changing age :)

Posted by: Chris Suckling | March 01 2009 10:29:01

another reason I need to get a xbox 360!..I have a Wii that I never play right now but I know I would play a lot more of the games for the 360.

Posted by: mike | March 28 2009 14:01:06

This is the future and it's about time the movie industry woke up and got on board. I think a new all in one set top box rather than an Xbox is the way forward.

Posted by: eBookGuy | March 31 2009 02:55:41

I wish xbox live had a rental service so you could just try a game out for a week.

Posted by: Tiffany Johnson | April 01 2009 11:08:24

Got a 360 but I haven't signed up for netflix yet, even though it is really one of the coolest new features/additions to the xbox. This is a hundred times better than renting the old fashioned way, and this way I won't buy any movies that turn out to be horrible.

Posted by: Seppo Review | April 02 2009 19:57:00

Its surely only a matter of time before Xbox live offers a rental service on games. I believe this would help to increase revenue.

Posted by: Traverse City Web Design | April 11 2009 21:30:45

If my fiance knew about this he would jump up and go buy one right now!

Posted by: 12mim | April 24 2009 22:54:08

One of the reasons I just purchased a XBox360. This is getting better..I need to sign up for Netflix quick!

Posted by: Ebony Tan | April 26 2009 00:26:10

Did this actually happen?  I thought they were putting a hold on the whole Netflix-Xbox merge when it comes to watching stuff on your Xbox.  I don't have an Xbox, so I have no idea.  But I did hear in the past that this was either delayed or cancelled.  IF it did go through, that would definitely make an Xbox more enticing.  Now I'm wondering if something similar is out for the Playstation 3.

Posted by: Real estate video | April 28 2009 11:29:30

I love Netflix.  This sounds like a great idea!  I do believe, as a side note, that Netflix will put the store fronts like Blockbuster, out of business soon!

Posted by: Jay Begin | May 09 2009 12:52:09

I allready loved my Xbox 360. And it gets more and more features for years to come. In a few years everything will be available online

Posted by: Patrick | May 18 2009 02:28:02

Netflix is fantastic! Not more not less.

Posted by: Custom Essays | May 18 2009 02:31:09

The only thing preventing me from buying a 360 is the fact that I have to pay to play online (unlike with the PS3)..I'd really rather pay for my Netflix subscription but be able to play online for free, than the other way around..

Posted by: Medical Transcription Outsourcing | June 01 2009 22:59:13

netflix will definitely put blockbuster and others out of business. its way more convenient.

Posted by: andrielle | June 03 2009 11:44:01

This is the future and it's about time the movie industry woke up and got on board. I think a new all in one set top box rather than an Xbox is the way forward.

Posted by: Mic | June 09 2009 11:27:54

Indeed the future; here where I live I gotta use all the fingers on both of my hands to count the video stores that have been forced to shut down. Come on, who rents dvds nowadays? No one, we either download movies illegally or rent them over "das int3rw3b5". Off course we do. Seriously, I dont know a single person that would get his money, put on his shoes, get in the car, drive to the video store, use half an hour to find a decent movie, pay for it, get back in the car, drive back, take of his shoes and THEN, finally, enjoy the movie, rather than do it all from the comfort of his own couch.

Posted by: Sam | September 15 2009 15:11:39