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emdawgz1 · Joined: 14 Mar 2006 Posts: 7949

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/14/AR2008071401999.html?hpid=moreheadlines

Coming Soon to an Xbox Near You
Microsoft and Netflix Team Up to Stream Films, TV Shows

By Mike Musgrove
Washington Post Staff Writer
Tuesday, July 15, 2008; D02

Xbox owners will soon be able to watch movies streamed through game consoles to their TVs, thanks to a deal Microsoft landed with online rental service Netflix.

The announcement was made yesterday at a Microsoft news conference given on the eve of the E3 Media and Business Summit, a major video game industry trade show in Los Angeles.

Microsoft is not the only consolemaker seeking to bolster its hardware's presence in the living room by offering film and TV content. Sony has announced that its store for buying and renting movies and other video content on the PlayStation 3 should go online this summer.

Netflix subscribers have been able to watch some titles in the company's library at their computers since last year, and a relatively new, Netflix-compatible device by gadgetmaker Roku allows subscribers to watch those streams on their TV sets. The online DVD-rental company, based in Los Gatos, Calif., offers about 10,000 titles online; it has not secured the rights to stream all of the 100,000-plus movies and TV shows in its library.

The Xbox service, which Microsoft says will be up by late fall, should greatly expand the video offerings for Xbox users. Though Xbox 360 owners have long been able to download content from Microsoft's video store, critics have sometimes complained that the selection is too limited.

Microsoft vice president of interactive entertainment John Schappert said yesterday that Xbox-owning Netflix users will not have to pay extra subscription fees for the service. Netflix has 8.2 million subscribers; about 12 million Xbox owners use Microsoft's online service for the console.

"It's an important step for Microsoft as it starts to try and reach beyond the hard-core gamers of the family," said Michael Gartenberg, analyst with JupiterResearch. "This gives the nongamers one more reason to want to use the Xbox."

A recent report by research firm NPD Group showed that Sony sold more units of the PlayStation 3 in the first five months of 2008 than Microsoft sold units of the Xbox 360. Previously, the PlayStation 3 had regularly trailed the Xbox 360.

Sales of both consoles still lag behind Nintendo's Wii, which does not offer a video store for its device.

JustGreg · Joined: 07 Mar 2006 Posts: 3098 Location: Kenosha, WI

Well, if the box acts with a movie like it does with a split screen game after being on for an hour (and some single player games)...I won't be using the service. I'm on my second 360 and still have occassional lock ups (3 times since getting a replacement console a year ago) but more often frame rate drops (lag) due to heat. I refuse to put a noisy cooler on it to make it work when the PS3 needs no add-ons to perform as designed.
From a personal standpoint, I refuse to subsidize M$'s blatant disregard for gamers and media savvy consumers in that they've released no less than 4 versions of the 360 since it's initial launch as they debug 'on the fly'. All subsidized by frustrated consumers. Each came with better features and improvements over the previous. (Refined components and layout, improved cooling, HDMI, etc) And STILL no Blu-Ray solution. (I don't think they intend to either...hence the streaming content). I like the 360. But it wasn't (isn't?) ready to release IMO.

garyfritz · Joined: 08 Apr 2006 Posts: 12088 Location: Fort Collins, CO

Yeah, the 360 may be a POS hardware-wise (crap products from Microsoft, gee what a concept), but this is the kind of thing that may very well kill Blu Ray as a format. People will go for the easy download-on-demand solution, and 98% of them won't care that the image quality sucks. Which it almost certainly will, given the bandwidth requirements of a decent HD signal.

ecrabb · Posted: Tue Jul 15, 2008 6:08 pm Post subject:

I wouldn't necessarily worry about the Microsoft/Netflix partnership killing Blu-ray. That Washington Post article is misleading (What? A misleading news story?!?!?) Yes, there are 12 million LIVE subscribers, but they're not all 360's, since there are only 10 million 360's installed. Even with the new price-drop, the Xbox is still $299. Obviously, many of the installed base of 360's do not have LIVE Gold subscriptions on them (mine is one), and even fewer of those ALSO have Netflix subs - both of which you'll need to stream Netflix movies.

I'm more worried about the $99 Netflix box and the "Netflix-Ready Devices" in combination with the 360.
http://www.netflix.com/NetflixReadyDevices?tb=details

Actually, I can't decide whether to be worried or not. The quality of the Netflix streaming is pretty abysmal even compared to DVD. Maybe on some TV's you wouldn't notice much difference between DVD... so, the logical conclusion is that streaming like Netflix and AppleTV will start putting the hurt on DVD. But, compared to HD... there is no comparison. Even J6P will be able to see that Netflix streaming looks like ass compared to Blu-ray.

I don't know...

SC

garyfritz · Joined: 08 Apr 2006 Posts: 12088 Location: Fort Collins, CO

Yeah, I wasn't referring specifically to the 360, but to some kind of download format like this. Unfortunately I think J6P would think that was just dandy and wouldn't notice the PQ difference. Most people don't see a diff between SD and HD. If you're sitting 10' away from your 40" LCD, you won't think BR is worth it.

emdawgz1 · Joined: 14 Mar 2006 Posts: 7949

Why worry???

I dont own an xbox. I dont rent movies. I dont want to stream movies from a service until..... they are first run movies. y'know like being able to go home and stream WANTED .... til then i'm cool.

My post was just to inform my bro's in the forum. Wink

ecrabb · Posted: Tue Jul 15, 2008 7:11 pm Post subject:

I think some worry is justified, John. The concern is that services like Netflix, Blockbuster and Apple's download/streaming/rental will undermine the growth or even eventually kill Blu-ray, and that all we'll be left with as A/V enthusiasts is over-compressed low-bandwidth crappy video. It's a legitimate concern, though I think given broadband penetration, HD installed base, and market penetration, I think it's at least a couple of years away before we have to worry much. Who knows what will change between now and then.

SC

WanMan · Joined: 19 Mar 2006 Posts: 10270

I think a lot of ISP's will simply slap their customers with bandwidth caps. Whether the limit is advertised or not, ISPs do not want you getting your video fix from someone else, but rather from their parent company.

emdawgz1 · Joined: 14 Mar 2006 Posts: 7949