Netflix & LG Partner To Bring Netflix to the TV

Netflix & LG ("Life is Good") are teaming up to provide a set-top box that will stream movies to TV sets in the second quarter of 2008. LG has not released technical details about the box, such as ports (HDMI? Component? Both?), hard drive, resolution, or other features.

Netflix CEO Reed Hastings told HackingNetflix that they will be partnering with a number of companies, "Our model is that we don't want one Netflix-branded box, we want to see 100 Netflix-capable boxes. We want to be embedded in high-def DVD players, Internet games, dedicated set-top boxes, a wide range of options, not all instantly. This is the first one, a great proof point."

The only available image at this time is a screenshot of the user interface:

Obligatory quotes from Netflix & LG:

“Internet to the TV is a huge opportunity,” said Netflix Founder, Chairman and CEO Reed Hastings. “Netflix explored also offering its own Netflix-branded set-top boxes but we concluded that familiar consumer electronics devices from industry leaders like LG Electronics are a better consumer solution for getting the Internet to the TV.”

“Consumers crave compelling and immediate content, and the Netflix online streaming movie feature can provide instant gratification. This alliance underscores LG’s goal of developing smart technologies that deliver flexibility, convenience and control to consumers,” said KI Kwon, President of the Consumer Electronics Division of LG Electronics USA, Inc.

What we know so far:

The set-top box will have the same set of movies that are available through Watch Instantly, currently around 6,000 titles. Movies will be streamed to the box, not stored on the device.

LG does not have an exclusive deal with Netflix, so we can expect to see other companies to include this feature (Microsoft's Xbox? PS3?). No other partners have been announced at this time, but Netflix CEO Reed Hastings said that he wants to see a wide variety of partners using the technology.

The pricing for the box has not been set, but I would expect it to cost less than $200 ($99 might be a good introductory price).

The box will be sold by LG, but the streaming service is expected to be included in the Netflix subscription price (no additional fee).

Netflix is testing unlimited Watch Instantly with a small set of users, so we don't know if the service will be capped or unlimited viewing (my guess is a limited number of movies, since Netflix has to pay the studios for each viewing).

We have very little information at this time about the technical specifications of the box, but I wonder if they will include HDMI and component interfaces (the 2 HDMI ports on my LCD TV are already full).

My bet is that the box will include a wired ethernet port and 802.11g. Very few people have 802.11n at this time, and Watch Instantly works well over "G."

Update: Additional coverage by Reuters, the Associated Press, and The New York Times.

What do you think? What would you pay for this device?

Comments

[prozac]

For $99.00 I would consider it. I enjoy the watch now service and have noticed that movies are constantly being updated. Soon enough we will see new releases on Watch Now ( a few have come out already). NF will have there hands full with other types of set-top movie entertainment.

[Matt]

Ok Reggie put all those Ninteto Wiis in the US Market to good use and make Netflix channel on the Wii .

Xbox would be another good fit because it already does Windows media .

[Pollardito]

Sharp has a fairly similar set-top-box, i wonder if they will partner up later:

http://tech.yahoo.com/blog/patterson/7269
http://news.yahoo.com/s/ap/20071220/ap_on_hi_te/tech_test_vudu

[MCWHAMMER]

Awesome stuff. If it's cheap enough, I'll buy it.

One question, if anyone could please help.

Has anyone tried hooking up a PC/Laptop to their HDTV to watch something off of Netflix instantly? If so, is the resolution bad looking on a big screen?

I'm wondering if I should buy a cable to do this, or wait for the set-top box.

Hope they do bring it to the game consoles too, those are a big opportunity, as they are already connected to the net, and are HDMI/Component capable. So, not much work would have to be done to link them to existing Netflix accounts.

I'm glad to hear that Netflix is trying to stay with the times :)

[MCWHAMMER]

Sorry for the double post, but I would at most pay $150 for it, IF the movies were HD quality. The box needn't include a DVD player or anything, just so long as it synced up with my Netflix account and maybe iTunes ;) That'd be awesome.

[Kre]

I wouldn't buy it until they offer a SIGNIFICANT selection of movie and TV episode titles.

Right now, their Watch Instantly selection is pathetic at best. It reminds me of Comcast On Demand, only worse, with a bunch of old, obscure movies that you know no one would want to watch. They're just there as filler to inflate the number-count of the online library: "Look! We've got 5000 movies!" Yeah, too bad most of them are crap.

I'm not saying they have to offer everything they do currently on DVD, but until they offer around 25% of what you can get via DVD, and I mean the good stuff - the most popular of movies, not all the crap, then I wouldn't even think about buying a box.

I want something more than just old movies I've seen ten thousand times and are sick of, and old boring junk that you'd never see anyone watching - you know, like what makes up the vast majority of the junk on Comcast On Demand. People want the latest. You can't avoid that and think that you can fool people into thinking they're getting the best thing since sliced bread. People are not stupid in that regard. I'm certainly not.

I've been waiting for a very long time for Netflix to come out with a way for me to download or stream movies instantly to my TV (not just my computer), and it's great they're moving in this direction. It shows, at least in part, that the person at the wheel isn't asleep. But they're going to have to really wow us.

If they're going to offer boxes that merely stream movies, then at the very least, I want to see a box with a bit of flash memory to serve as a buffer so when I fast forward and rewind, the box doesn't take forever to respond like it does with Comcast On Demand. That just drives me nuts. I want the box to be quick and responsive, and frankly, want the ability to forward and rewind by chapters, and to go straight to a chapter - not just fast forward and fast rewind like we see with Comcast. Not being able to do that also drives me nuts. That's why I think they should offer a box with a HDD that can download the movies, and then erase them when new downloads take their place. Streaming only, is not a very good idea - it reduces the ability to navigate and see special features, etc. In other words, if Netflix is going to offer a box, that box better perform just like a DVD inside a DVD player. Otherwise, forget it.

Oh yeah, and I almost forgot: It better handle HD movies, also. Because if it's just gonna rock standard definition only, you can forget that, too.

Don't half-ass it, Netflix. Get it right the first time, or don't even bother. Please. I don't need "Comcast On Demand, Part II" - I already have their box that handles that and handles HD, so why would I spend money on yours if all you're going to offer is a similarly crappy selection of movies with the same "streaming" short-comings? At least I don't have to pay next to anything for the Comcast box. But I'm supposed to drop $100 - $200 for yours? The only way I'm breaking bank for that (and you know I'm hardly the only one who thinks this way), is if you give me something that REALLY gets my attention. Otherwise, drop another quarter into the machine and "Try Again".

[Edward R Murrow]

So cool, LG stuff is like one step above what was available through the Homebrew Computer Club.
http://en.wikipedia.org/wiki/Homebrew_Computer_Club

The first of these set top boxes will be at Kmart as a blue light special, right across the aisle from the Martha Stewart collection.

But seriously, the best that NFLX can do is with parter up with LG? They could have done something on Xbox, Wii, PS3, etc. and all they can do is stream to a setup box from LG?

While Apple has iPod, iPhone, iTunes and AppleTV...

"If (Apple) does what has been reported, they will reach a very big market," Hastings said. "But the addition of Apple to the rental market isn't causing us to lose any sleep." Full story here:
http://biz.yahoo.com/ap/080102/netflix_tv.html?.v=1

Somebody better make Reed put the pipe down and leave the opium den during core business hours.

[mojaam]

Darn, I thought it will be the movies Netflix have on DVDs rather than the meager 6,000 titles on the watch instantly feature. I love it, but I finished a couple TV series and a few movies but the selection is not that satisfying. I hope they convert more movies sooner and faster.

[camman68]

Recently, I purchased a new desktop PC. My old PC was unreliable but I didn't want to get rid of it. It had a TV tuner and a decent video card in it so I attached it to a Dell 32" HDTV via S-Video in my bedroom. I also have Dell Speakers and sub.

The website checks your speed then determine which version to stream. My desktop is wired to my DSL network so I get the highest quality movies available. Most of the movies have been sub-par but it is acceptable if I don't have any DVD's at home.

Currently, most of the movies I have seen are not DVD quality. However, this week I watched Saint of 9/11 and the quality was excellent. It seemed to me that it was almost HD.

Since the Watch Instantly is free, I think it is great. I don't think I would buy the settop box until more of their movies are available in DVD or HD quality.

[JJMcRay]

MCWHAMMER, I watch Netflix instantly on my 104" screen and to me it looks DVD quality, it looks much better than my basic cable. I have my PC hooked up to my Optoma HD70 720p projector over a VGA connection.

[MovieFiend]

I'm sure that the selection will increase, it won't be everything, and I doubt you'll see new releases on there for 6 months to a year after they come out, but I'd buy one if the major films of the 2000's were available, films like "Gladiator" While there not new, it'd still be worth it.

[Baff]

There is no way I would pay $200, I would just up my Netflix rental plan instead.

I would consider $100, though I would most likely hold off, hoping for a PS3 version. I really don't want another box that I have no room for. No space in my entertainment center and the only slot on my TV is 1 Component slot, the HDMIs are taken.

At $50, I would probably grab it as an impulse buy, space or not.

If I had to plug it into composite, s-video, or coax, then I wouldn't bother at any price. Netflix doesn't offer any HD downloads yet, but I wouldn't want a machine that won't support the option when they do offer it. 1080 would be awesome, but I would be happy enough with 720p for downloads.

Hope we get some solid details soon.

[willielumlum]

KRE:
Seriously?! You think netflix has all those lousy movies on purpose so they can turn us off to the whole watch instantly thing?! If netflix could get the rights for the new releases from the studios to distribute over the internet then they would. unfortunately, most studios already have contacts in place with major cable networks such as HBO and Showtime to allow exclusive rights to those companies. If the studios didn't have these contracts in place then maybe the selection would be better and we could get them on watch instantly. but to blame this on netflix some how is short sighted and ignorant. oh, and i bet you buy one as soon as it comes out. HA!

[Blazie]

I would only consider this purchase if it was less than $100, unless it came with something more than just streaming capability. I'll more likely hold out for someone to make a plugin for popular media center software like Mediaportal or Microsoft's MCE, since I already own a HTPC and I don't want to have yet another box cluttering up my entertainment center.

I have an HTPC which upscales and all that on the projector, so I can play divx, youtube, DVDs, games, and don't need this box. I think this is a great idea for some users. These are early days in this type of thing, but I am glad Netflix waited (in my opinion) just long enough to jump into the fray. It will only get better and better.

Too bad there are some weak links that hopefully can be addressed a) the studios are holding back on the good content. Please don't blame NFLX. The studios would rather see more like a $10-15 rental fee per film (crackheadz) b) the pic quality should be as HD as possible, again NOT Netflix's fault- the broadband (non-cable) needs to be able to handle it first. It is impressively making use of the capacity available, and close to DVD.

B) is going to be resolved within a few years as FIOS, vDSL, etc., build out, but A) can only get resolved if the studios remove their heads from their asses. Right now, with the writers costing the entire industry, studios making rentals more affordable and accessible seems pretty damn far off.

An MCE plugin and other widget type stuff would be very wise, I like how Reed envisions Netflix on "hundreds" of devices and very interesting to note not all instant...

[CopaceticOpus]

Netflix is working pretty well for me as it is now, so this box would have to offer something compelling to get me to buy it. The current limited selection of Watch Now titles would make this box barely worth connecting.

If they do get a fuller selection of movies, I would worry about quality. I watch DVDs on a 52" TV with a great upscaling player. If I can't get a similar experience, I'll stick to the discs.

I'm sure in 5-10 years, we'll all be watching downloaded movies in our living rooms. But along the way there's going to be a lot of failed devices and big showdowns between the major corporations. I can wait for the dust to settle.

[Becky]

In a New York minute!

[Jason]

It'd be interesting to see if NF would subsidize the box to (new) subscribers much like DirecTV does for its receivers.

[Nick]

since 802.11n is backwards compatible... build it in and people will use it with the 802.11g hardware right now and then the N stardard will be present once people upgrade. I would like Netflix to continue to represent the feeling that they exist to make things better and more convenient for the customer by actually thinking ahead unlike the other 99% of every tech companies.

[Adam Fields]

How about we get a Mac version of Watch Now first?

[MCWHAMMER]

Thanks for the help JJMcRay! Sounds good :)

[MCWHAMMER]

Thanks for the help JJMcRay! Sounds good :)

[Chris]

"since Netflix has to pay the studios for each viewing"

Does anyone have an idea of how much Netflix is paying the distributors for one watch it now viewing?

[georgec]

Pricing: Needs to be under $100, perhaps subsidized by a longer term contract.

Partners: More than just LG, but its an OK start. TiVo ... please. I'm begging.

Technology: A variety of ports-out is correct, per other posters. Clean, intuitive interface. Protection from accidental downloading/watching. Pause/skip/rewind/FF. Save for longer periods (none of this must-watch-in-24-hours). Multi-room viewing if I have 2 Netflix boxes on my network. Start the downloads from work (web ordering). Enough buffering for those of us with really bad DSL lines (I'm at the end of the pop and barely get 200kbps download).

Content: Where the rubber meets the road! Must have more than just the Watch Now library. I'd love to see enough content partnerships so that I could really replace Charter Cable content with Netflix content. That means not only first and second run movies, but also TV hot series as well, and even some of what is now second and third tier cable: some of Bravo's hot series, Pimp my Ride type of stuff, Curious George/Sesame Street, etc...

Today, I pay roughly $20 to Netflix, $60 to cable, and $40 for DSL. Please help me reduce some of this entertainment budget. Preferably by 86ing the dastardly cable companies.

And that's my $0.02... FWIW.

[Noah]

Damn it, Adam beat me to it -- Make the Mac version of Watch Now first...I mean, we all saw how well that Netflix & TiVo partnership turned out. (rolls eyes)