It seems that Netflix (NFLX) will be adding the number one game console, Nintendo’s Wii, to its list of streaming destinations this spring. This is good news as Netflix moves from a DVD delivery service to a content streaming service. The ability to stream will be tied to the user’s membership.
Netflix will need to do more to make streaming a simple matter. They are competing with the cable stations (that typically only offer a small number of movies). The advantage that Netflix needs to offer is the ability to stream a large number of titles to a variety of devices so that they remain a force in the industry as others start to offer this service. Their DVD rental business had a very high cost of entry for competitors but streaming to a computer is not nearly as high cost. Their key is to control enough customers that the studios give them preferential pricing.
BloggingStocks.com also has some interesting analysis. Here is part of what they think and you can click through to read more:
Nintendo fans and movie buffs, unite and rejoice! At long last, Netflix (NFLX) has said its streaming video service will be available for the Nintendo Wii this spring. Wii is bringing up the rear a bit here, as consumers with an Xbox 360 from Microsoft (MSFT) or a Sony (SNE) PlayStation 3 already enjoy access to Netflix films.
Here’s the fine print: Wii users have to have a broadband connection and a Netflix subsription that costs $9 per month or more. Upon receiving a special “instant-streaming” disc for the Wii, they will have access to their instant queue, essentially using the Wii as a portal through which to play the films (of course, a TV is still necesssary). Currently, there are about 17,000 titles (movies and TV shows) available for streaming, a far cry from the 100,000 names a Netflix subscriber can get in good old-fashioned disc format.