Digital Distribution Death

June 5, 2008 by Jeremy.

Netflix is dead if it listens to Wall Street. I am totally with cnet on this one. I think Netflix is wise in looking to the future. Digital distribution is coming and its coming sooner than you think. Think of all the XBOX 360 owners and PS3 owners that have the opportunity to download movies and television shows that they want to watch right on their respective consoles.

These people are already being trained to use the digital distribution process and its not even mainstream yet. So Netflix is wise in getting an install base for their system as early as possible.

The biggest problem with what they’re doing is PC users can do the same thing without the $99 unit price. I can download and watch all of the movies that will be available to this system right on my PC right now. So all I have to do is plug my PC into the back of my Sony Bravia and enjoy the same thing without paying the $99. So Netflix will need to drop that price down a bit or offer the hardware for free with a membership contract for a certain time length kind of like a cell phone plan.

So maybe some of my more tech readers can fill in what I’ve missed or offer a better thought to the process but the way I see it Netflix is ahead of the game and this move will pay off in the future.

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