Netflix Streams Into App Video iPhone

Even as rumors about a 99-cent iTunes TV rental service swirl, Netflix is moving onto Apple's hardware with a free application that will let its members watch television episodes and movies on the iPhone and iPod touch. On Thursday, Netflix rolled out the Netflix App for the iPhone and iPod touch.

Members with plans starting at $8.99 a month can stream content to an Apple device at no additional cost. The Netflix App supports any iPhone or iPod touch running iOS 3.13 or later.

"Apple has changed the game for mobile devices," said Reed Hastings, Netflix CEO and cofounder. He said Netflix members can now carry "Netflix around in their pockets" and enjoy entertainment wherever their Apple devices take them.

No Threat To Apple

Rob Enderle, principal analyst at the Enderle Group, said the iPhone app is a "no-brainer" for Netflix members because it's free. Although some competing music services struggled to get Apple's App Store sanction, Enderle said the Netflix App isn't competing directly with Apple -- at least not now -- because Apple doesn't currently offer a subscription service.

"The Kindle app hasn't hurt Apple, and when Apple allowed Slacker in the App Store, that didn't hurt them, either," Enderle said. "So allowing these kinds of applications into the App Store has so far made the phones a lot more successful."

At the end of the day, Enderle noted, Apple is in the hardware business. Although Apple wants consumers locked into its services, as long as consumers are buying iPhones and iPods and iPads, the company is going to make its margins.

Winning New Customers

The Netflix App promises a high-quality viewing experience, a good variety of movie and TV choices, and a user-friendly interface. It's available via both Wi-Fi and 3G networks.

TV episodes and movies are organized into categories based on members' personal preferences, popular genres, new arrivals, and members' individual queues. Members can choose a movie or TV episode from any of the lists and just tap the multi-touch user interface to begin viewing the movie, or save it to watch later.

What's more, users have the option of fast-forwarding and rewinding the video stream and stopping at any time. When users want to start watching again, the video stream starts where it was stopped, even on a different device capable of streaming from Netflix.

Will this app Netflix get new customers? "This app could open up the market a little bit more for Netflix, especially over time as they shift more content from the traditional DVD side over into the streaming side," Enderle said. "At the very least, it makes sure that an Apple user is not locked out of Netflix."

Source: http://it-news-4us.blogspot.com/2010/08/netflix-streams-into-app-video-iphone.html