Netflix Prepping Apple TV KillerJan 3rd, 2008 | By James Lewin | Category: Digital Video Downloads, Internet TV, Video
Netflix and LG Electronics are reported to be prepping a Apple TV killer, a set top box that will let users stream video content from the Internet directly to HDTVs.
Netflix has 7 million members. If it can convince even a small percent of its members to try the service, it could quickly leapfrog Apple’s Internet television device.
“This could shape up to be a boxing match between Apple and Netflix over video streaming content to TVs and PCs,” says Michael Olson, an analyst at Piper Jaffray.
According to Olson, Netflix’s set-top box needs to cost about $100, with a monthly subscription rate of $12 for rentals of two to three titles at a time, in order to succeed.
“The potential is huge over the next 10 years,” as millions of Americans buy HDTVs and increasingly pipe Internet content straight to them, says Netflix CEO Reed Hastings.
Netflix is the leader in DVD-by-mail rentals, but has to adapt to the growing interest in Internet video. There’s no word if Netflix’s solution will support video podcasts or other Internet videos.