Streaming Movies Wii
Streaming-Only Dvd Rental Could Take Over Uk Market
Netflix, America’s biggest online DVD rental service is looking to expand over the Atlantic with a move into the online movie streaming arena.
The company’s head, Reed Hastings, told reporters that the company was: “focused on entering one country and seeing how we do.”
Mr Hastings also gave a signal that it would likely be the UK when talking about the company’s previous aborted attempt at entering the British online DVD rental market.
“[This time] it’s streaming only, that’s a big difference – no warehouses, no integration with the Royal Mail” he said.
The company had planned to enter the UK market six years ago but was forced to retreat after a price war began in the States.
Tough Task
But it will by no means be any easier second time round.
The UK DVD rental market is now a very different place, with Lovefilm dominating rentals. Lovefilm DVD rental is looking to get a stranglehold on online streaming too.
The company already has around 3000 movies on its website which subscribers can watch instantly. Around 300 of these are available to anyone for free.
The majority are TV series or less popular movies but it recently made French film ‘Mesrine’ available for free and will no doubt have other promotional tricks up its DVD sleeves.
However, online streaming has thus-far failed to have a significant effect on consumers who compare DVD rental.
Broadband Britain
The state of the UK’s broadband market may also have an effect on the expansion of online movie streaming in the country.
Only recently have BT launch 40Mb services to a limited number of homes, the majority of internet users are on connections which should just about cope with the demands of online movie streaming.
More of a concern is whether movie subscribers will be willing to pay more to gain extra monthly bandwidth, required for the large amounts of data used by the services.
The good news for Netflix though is that there is plenty of opportunity for tie-ins with broadband providers and expansion of content delivery to other devices.
TV / DVD / Online Movie?
The latest household technology incorporates Ethernet and wireless technology meaning it can be directly hooked up to the internet.
Netflix already offers its online movie streaming service to Xbox360, PS3, Wii and some new Blu-ray players in the US. It will no doubt offer the same to users elsewhere.
It’s not the only one doing so however, at CES in Las Vegas, Sony and Samsung announced new TVs which would offer Lovefilm subscribers the chance to watch the company’s movie streaming service on their living room TV with no need for a computer.
Lovefilm is also expected to make moves into the games console market and offer its online movie streaming service to PS3, Xbox360 and Wii owners.
Netflix plans to enter the European market in the second half of the year but may need to hope that its rivals haven’t gobbled up too much of the market by then.
About the Author
Neil Hawkins is a staff writer for the news and reviews website ChooseDVDrental where users can compare DVD rental services. The website also provides tools for users to compare DVD rental free trials
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