Breaking: Netflix Launches "Watch Now" Downloads

Netflix has launched a new feature called Watch Now that will enable subscribers, at no additional cost, to watch movies immediately on Netflix.com. The new service does not limit the number of movies a customer can watch, instead it gives users 1 hour of video for every $1 they spend monthly (18 hours of online video is free with the $17.99 plan). Customers can watch 5 minutes of a movie, decide that they don't like it, and switch to another without penalty (many online movie rental options require watching a movie within a certain time period, such as 24 hours or 14 days, or the movie will have to be re-rented at additional cost).

Unfortunately, the Watch Now feature will only be available to a few customers at this time, and it will be rolled out to all customers over the next six months.

The first thing you'll notice is a new tab: Watch Now.

The Watch Now page gives you access to the movies available for online viewing:

Netflix recommends movies, shows you movies you've recently viewed (handy if you've only watched part of one), and also shows you movies that you can watch from your queue.

Netflix tests your Internet connection, and varies the quality of the video depending on your connection. If you have a slow connection, the start of the movie may be delayed and the quality of the movie will be less than DVD (but still very watchable). If you have a 1.6 Mbps or greater connection, the movie should approach DVD quality. I have a 6 Mbps DSL connection, but Netflix was unable to resolve the speed issue before this story went to press.

The first time you watch a movie Netflix will install the Netflix Movie Player, which only takes a few minutes. Movies are viewed in the browser, like YouTube, instead of in a separate player like Amazon's Unbox.

The Netflix Movie Player was developed in-house, and very closely resembles the Netflix Previews feature. From the time you click play on a movie to when the movie starts is as fast as 10 seconds. I have another quirk where it asks to acquire the rights to the movie, but it works after clicking "Play."

When you're browsing through movies that are part of the Watch Now feature, you will see a Play button under the movie box.

Netflix keeps track of how long you've watched each movie, and you can view your available time via Your Account:

The Watch Now features is currently only available for Windows XP, but Netflix expects to launch the Watch Now feature on other Internet-connected platforms, such as cell phones, over time.

There will only be about 1,000 movies available to start, but Netflix hopes to have more than 5,000 this year (for comparison Apple only offers 250 movies through iTunes). Studio and network partners include 20th Century Fox, Lions Gate, MGM, New Line, Paramount, Sony Pictures, Universal, CBS, PBS, Discovery Channel, BBC, and Showtime (this list may be subject to change on launch).

You must be connected to the Netflix website to view movies, so you can't download a movie and then watch it on a plane, but you still have your DVDs for situations where you cannot connect.

This is an interesting way to offset the defection of customers to Blockbuster and online movie download services such as Movielink, Vongo and CinemaNow.

Update: Netflix issued a press release to announce the new feature, and it has an interesting quote from Netflix CEO Reed Hastings:

"We named our company Netflix in 1998 because we believed Internet-based movie rental represented the future, first as a means of improving service and selection, and then as a means of movie delivery," said Reed Hastings, the company's chief executive officer. "While mainstream consumer adoption of online movie watching will take a number of years due to content and technology hurdles, the time is right for Netflix to take the first step.

"Over the coming years we'll expand our selection of films, and we'll work to get to every Internet-connected screen, from cell phones to PCs to plasma screens. The PC screen is the best Internet-connected screen today, so we are starting there."

Comments

[usermonster]

Wow.

I love how it's part of the regular membership price; Netflix's version of BB's Total Access.

If there were only a way to stream the video to my TV, I'd dump BB and come back home to Netflix.

[scotty321]

Without Mac OS X support, this gets a big THUMBS DOWN from me.

[Aron]

Good scoop Mike!

[peter]

No thanks...my desire to forsake my big widescreen, 5.1 speakers & recliner for a 21" square monitor, 2 small speakers & a desk chair is limited.

[corey3rd]

so the key is to pick short features so you don't burn up your time. Although it stinks that you'll get billed for the 8 minutes of end credits.

[danb]

I watch half of the movies I rent on my laptop anyway. For no additional cost and [hopefully] no queue penalty I'll have to at least try it. The slow roll out sucks but I guess it's better than a full roll out before the infrastructure is fully tested.

[Edward R Murrow]

This is so incredible that I invited 10 friends over so we could all stand in a single file in front of the computer monitor! This lasted for about 30 seconds then we went over to my big screen plasma HDTV and I downloaded "Who Framed Roger Rabbit" in HD from Comcast in less than 15 seconds. Jessica Rabbit is so hot in HD.

[funnythinghappened]

Oh, Edward. We all know you don't have 10 friends. Your infatuation with Jessica Rabbit is entirely believable, though.

[Lamarr Wilson]

Great scoop Mike; I look forward to seeing this in action! I was hoping for a Netflix/Tivo deal, but this is great too. I have a 20Mbps connection so I intend on using it!

[Edward R Murrow]

No, no, seriously. We passed the bowl of popcorn forwards in the line then once it got to the person in front, s/he had to go to the back of the line and everyone else shifted forward towards the computer screen. I'm selling the big screen plasma HDTV on eBay tomorrow so I can watch all my content on a computer screen from now on.

If this is the download strategy from Netflix then someone please stick a fork in 'em. Or perhaps they've just forked themselves?

[smgpugfaw]

---If there were only a way to stream the video to my TV, I'd dump BB and come back home to Netflix.---

There are *plenty* of ways available now that vary in effectiveness and cost if you just look around.

I'm still mulling over the choices/need for it, but in the meantime I'm using my Nintendo Wii browser.

Certainly a low rent solution that's far from perfect at this point, but while some people just complain about the idea of watching streaming media on a PC, my family streams media to the big screen in the family room. It cost me nothing at this point (aside from the Wii, which we have anyway) and gives me time to play with the idea until I commit to a more permanent (and better) solution.

Yay me!

[Flibberman]

*"stinks that you'll get billed for the 8 minutes of end credits"*

If you don't watch the credits, you won't lose the time. It only counts the time you've spent watching, you can fast forward or simply click STOP and your time won't be wasted.

Did they randomly pick subscribers to test this out? Or was it just NetFlix staff? Anybody here get the test trial?

[hueristix]

where's mine? I would love to use this as a preview function to see what I really want in my queue or not. The price is right. Again they have come up with an intriguing business model; per minute charges.

It is really easy to get your computer image on a tv- and sound to your surround amp- where have you ppl been, Slovakia?

Comcast downloads are great if you dont mind paying $7 per movie. Nothing's perfect but I am glad to see Netflix jump in to the fray. where's mine?

[grantlairdjr]

Looks interesting...

Wonder if it support closed captioning or subtitle? Can you find out?

gwlj

[junkfood]

Good point, hueristix. I could definitely see myself using my hours in 10-15 minute chunks to preview movies. Now that I've dropped down to a 2 disc plan, I'm a little more careful about what I put at the top of my queue. Watching the first 10 minutes of "Road House 2" will help me decide whether it's so bad it's funny or is it just horrible.

[JW]

It's completely irritating that these companies are stupid enough to think that pc downloads are something special. I cannot believe Netflix went this route and hasn't rolled out a set top box yet.

Let's see, 21" LCD monitor vs 50" LCD HDTV flat panel. Wonder which one I'm going tow atch movies on. Frackin ridiculous. Give me a box, I'll pay more every month, I just want to watch downloads on my TV!!!!

[Kevin]

---If there were only a way to stream the video to my TV, I'd dump BB and come back home to Netflix.---

There are plenty. If you're willing to spend money on a set top box from Netflix, then you could buy a TV-out card for your PC, buy a Slingbox that streams your PC video to your TV, etc. etc. etc. Just about any decent video card these days comes with TV out so it isn't a stretch to get it connected.

[Hunter McDaniel]

The main attraction (for me at least) is using this feature for extended previews. After that, I'd rather wait for the real disc.

But 1000 titles isn't many. Since most of my viewing is back catalog stuff, they are going to have to obtain licensing for a whole lot more before I'll get much usefulness from this.

[McDahling]

This is awesome, I honestly don't see what all you whiners are complaining about. They aren't charging any extra fee for this service. And you know if they download to computer, or set-top box, there would be a substantial charge. I find this very nice and really convenient. It takes a day to get a movie, and half of the time I regret getting it cause it is a piece of crap, this way I can see if I like it. Also, this is good if I want to see if a movie is purchase worthy. And considering iTunes only has 250, I am very thankful for the 1000 Netflix has.

[TenHanger]

If you have Windows Media Center edition on your PC, and then you have a media extender (Viiv or Windows Media Extender), can't you just use your remote on your "extended" TV to play the Netflix movies on you giant screens?

[CJ]

Bet Netflix won't be rolling this out to us 8 out at a time customers for quite a while. However, I sure would like to see how it works on the computer I currently use for rented DVDs - it has a 24" WS LCD monitor and also a 5 mps internet connection. Rented DVDs look like High Def using the PowerDVD player. I'm curious to see what the NF Watch Now definition would look like on that computer...

[danb]

Come off your high horse, people. Netflix and others are entertaining the idea that Microsoft and Apple are working to make the PC a media hub as well as a word processor. If media center PCs are successfully marketed as living room devices then people will look to online downloads as a means of competition with tradition media delivery systems.

If I have a choice between a $1000 media center PC that can handle all my computing and media needs or a $500 single purpose set-top box I will choose the former 10 times out of 10. Even if the latter delivers slightly better content the former offers so much more value that I could never opt otherwise.

Also, remember that not everyone has a $3000+ entertainment setup. Watching a movie on my 15" widescreen laptop is actually better than watching a movie on my 20" pan & scan tv from across the room. I normally watch my movies at night when my wife is sleeping, so the surround sound system I got (a $100 refurb) is seldom used anyway. Plus, most of the movies I rent were recorded originally in stereo.

Your cable company is a monopoly and part of the old-school of overcharging, heavy handed, copyright loving, consumer hating media industry. Be thankful that Netflix, Apple, and a few others are trying to offer different business models, even if they have to deal with the old schoolers to get the content out the door.

I'm excited about getting more service for the same money. It allows me to check out movie downloads without signing up for something new or paying extra money.

Now I just wonder about overage charges, extra service plans, and whether unused viewing time carries over. I also can't wait to see what BBO comes up with to compete.

[Lamarr Wilson]

I have to agree with the "whiners" comment. It seems that some are never happy. Had they come out with a download service, you would've complained that it's too expensive, or that the titles aren't what you like...

It's FREE, and they DID SOMETHING. Don't like it, don't use it. It will fulfill a need for a niche audience who are in front of their computer throughout the day and who would like a feature like this. Instead of complaining be thankful for something additional free! The HD-DVD & BluRay rentals at no additional cost is terrific; they certainly could've charged more for that, and they could've charged for this as well.

Thanks Netflix for DOING SOMETHING!

[hrsd]

because the movies are streaming, you need a internet connection at all times. You cant download movies and watch them on the go. Great if you are in the office or at home. A majority watch movies on pc/notebook when they are traveling....this feature doesnt help them.

[Paradoxdl]

This is a great idea for those who like to preview movies before renting, as well as those who are travelling (some us of have wireless connections, and some of us stay in "free wi-fi" hotel rooms). I'm part of the 3-out plan, so 18 hours also adds up to an ENTIRE SEASON of a TV show (without the commercials).

I prefer watching on my big screen plasma myself, but I wouldn't mind an episode of a TV show here and there on the laptop, at no additional cost. Once I can find an affordable way to hook my PC to my plasma, I'm good to go.

This plan will blow Blockbuster out of the water.