Netflix and Tivo Team Up
Netflix has been on a rampage of sorts doing deals to get distribution of their online service. Engadget broke the story tonight that Netflix and Tivo teamed up to offer Netflix’s on demand service. Now people can access thousands of movies both standard definition and HD movies from their Tivo.
Similar to the Xbox 360 Netflix service that recently came out, the functionalty is at no additional cost, you just need a Netflix account to use it. Engadget also got an early hand on experience. They said it is not as flashy as the Xbox 360 experience but the performance was noticably better. Netflix is certainly making a major bet on online distribution and they are moving fast to lock up key distribution channels from Blockbuster. The recent deal that Microsoft and Blockbuster made to create a Live Mesh application is going to make this a game of chess and not checkers.
Blockbuster and Microsoft Building Live Mesh App
Blockbuster and Microsoft are working on an application that uses the Live Mesh technology to deliver video content on any device. This is probably similar to the BBC application that Microsoft showed off at PDC, which was very impresive. The interesting thing that Live Mesh solves for developers is a way to easily deploy and manage an application accross a variety of devices.
Dallas News spoke with Keith Morrow of Blockbuster, which said “Eventually, we’ll give customers instant access to any movie on any device with an Internet connection and a screen.” Using Silverlight and Live Mesh, I think Blockbuster and Microsoft can build a compelling application.
Blockbuster Service to Compete with Netflix
Blockbuster launched its own set-top box and on demand service today. The cost is $99, but includes 25 movie downloads and the additional movies cost $3.99. This move seems to be in direct response to Netflix’s series of announcements from the Roku set-top box to the Netflix XBOX 360 service. This looks like two rivaling business models as much as marketing jujitsu.
The Blockbuster offering does not require any recurring fee or subscription like with Netflix. But Blockbuster seems to be really fragmented on their marketing strategy. First, they have a large investment in brick-n-mortar locations that they need to determine if its an advantage or disadvantage. Second, they need to simplify their distribution options. Right now they have distribution in-store, though mail, set-top box, and PC (through MovieLink) all of which don’t have an intergrated experience.
