Monday, March 08, 2010

Movies From NETFLIX Online

In 1997 when the fledgling company NETFLIX began shipping movies on DVDs to subscribers nationwide, few would have predicted how fast the service would grow into an icon of electronic entertainment. The success of the company, which was then based on a very old business model of a physical library and 250 year old distribution system, the US Postal Service, was extraordinary. For those unfamiliar with NETFLIX, subscribers set up on line a list of movies they would like to see and, depending on the type of subscription, a selection of movies on DVDs is sent to the subscriber’s home each month. When you return one, another from your list is automatically sent. The DVDs are mailed back and forth. This system has been in place now for more than 10 years but its is about to change.

Just like the sale and distribution processes of music quickly changed from a physical product and physical distribution system, the distribution of movies is quickly following suit. Remember when CDs were once purchased in “Record” stores? Now we have a system that distributes music as MP3 files bought from on line stores like iTunes or

NETFLIX now offers a complete online service that sends movies to your home using the internet. No DVDs, no trudging to the post office, no loosing the DVDs under the couch. Just like the original service, subscribers set up a list of movies they would like to see and one by one the selections are sent.

There are various ways of receiving these online movies but the one common denominator is a high speed Internet connection like Road Runner or ZoomTown. There are many devices available that can receive, store and play out the movies. For example, many of the new gaming devices such as the Xbox 360 or the PlayStation 3 can be used. There are several DVD players that are NETFLIX compatible. Sony and LG have HDTV sets that can receive, store and play out the movies directly from the Internet. You can also use a desktop or laptop computer.

The cost of the service runs from about $10 per month to $20. The number of movies you wish to receive dictates the price.

While the online delivery of movies is still only a small part of the NETFLIX business right now, if it develops as quickly as iTunes and Amazon MP3, it wont be long before the DVD may be as scarce at an LP.

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