LOS GATOS, California (AP) -- Netflix Inc. will start showing movies and TV episodes over the Internet this week, providing its subscribers with more instant gratification as the DVD-by-mail service prepares for a looming technology shift threatening its survival.
The Los Gatos-based company plans to unveil the new "Watch Now" feature Tuesday, but only a small number of its more than 6 million subscribers will get immediate access to the service, which is being offered at no additional charge.
Netflix expects to introduce the instant viewing system to about 250,000 more subscribers each week through June to ensure its computers can cope with the increased demand.
After accepting a computer applet that takes less than a minute to install, subscribers will be able to watch anywhere from six hours to 48 hours of material per month on an Internet streaming service that is supposed to prevent piracy.
The allotted viewing time will be tied to how much customers already pay for their DVD rentals. Under Netflix's most popular $17.99 monthly package, subscribers will receive 18 hours of Internet viewing time.
The company has budgeted about $40 million this year to expand its data centers and cover the licensing fees for the roughly 1,000 movies and TV shows that will be initially available for online delivery.
Netflix's DVD library, by comparison, spans more than 70,000 titles, one of the main reasons why the mail is expected to remain the preferred delivery option for most subscribers.
Another major drawback: the instant viewing system only works on personal computers and laptops equipped with a high-speed Internet connection and Microsoft Corp.'s Windows operating system. That means the movies cannot be watched on cell phones, TVs or video iPods, let alone computers that run on Apple Inc.'s operating system.
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So, my first thought is that this is a service I would never use. I have a large HDTV, I bought it because I like to enjoy my movies large and clear. For others with larger computer monitors, this may be more enticing.
As I thought more about it, though, I realized that I would probably use this for previewing shows and movies to make best use of my subscription. Because my wife and I split our monthly Netflix allotment, if I take a gamble on a new TV show and decide I don't like it, that's 2-4 days without a movie for me.
With the new system, though, I could stream the first episode of a show on my computer and make a decision about whether or not I like it without wasting DVD time.
A couple of problems, at least for me: 1) I'm on OS X, so I can't use the service at all; 2) With only 1.4% of their inventory available via the Watch Now feature, it's unlikely that the stuff I want to preview will be available.
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I use usenet to get movies unavailable in the united states or versions that I cannot get here (I buy them whenever they do become available or buy a version I don't wan't (dubbed) if available before dling the version I do want)
Anyway, 2.5 gig download isn't unusual and takes under an hour from my usenet server.
I would imagine a netflix like service would be FAR slower though. I probably would only use it if they allow me to get a direct link and use my own download accelerator. I use getright with my usenet downloads and the segmented downloading is a huge speed boost allowing me to max out my cable speed.
If they used some GOOD bit torrent software along with their own dedicated servers I could see them getting a decent transfer rate without killing themselves. They would have to make sure to take absolutely no instruction from Blizzard though, their bit torrent usage is abominable.
edit;
I probably would not use this a lot anyway really. I do the usenet thing only as a last resort. A legitimate service would let me grab things that I was on the fence about though. Things I don't need in really high quality. Like comedies that look like they might have 2-3 funny parts in them.
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I just signed up for Netflix again to rent Blurays. Yeah no way I'm downloading 50 gigs per movie. I'm pretty sure I'd get a TOS letter from Comcast if I even tried......