Open letter to Netflix,
What people want is so blindingly simple that there has to be a reason they don't provide it. Here is what people want. OK, actually, here is what I want. :-)
1. Use the exact same model as what you've got now. Allow me to instead of waiting for the DVD/Blu-ray disc in the mail, send a disk rip over the internet to the set top box I purchased for a one time fee.
2. Always be trickle streaming content, perhaps with the ability to say, hey between 10pm and 5am, knock yourself out and download at full speed. But the rest of the time, let me specify, hey use x amount of my connection to be downloading additional movies in my queue till my hd is full.
3. Download the next X items in the queue where X is limited by the internal hard drive. Even small laptop hard drives could handle quite a number of high definition movies.
4. Provide HD, widescreen and normal outputs as well as 5:1 surround sound.
5. Use the same viewing model. I can watch the "current" movie as many times as I want for as long as I want. When I'm done, it's deleted from the local hard drive and the next movie in the queue (previously downloaded) is immediately available.
6. Add the same limits we have today, ie if you have 2 a month, after you've watch 2 you have to wait till the month is over (or upgrade the account).
7. Finally, lock up the content in whatever way makes the content providers the happiest. Use hardware encryption, whatever it takes. The local box simply caches your chosen movies till you play them.
The benefit the consumer gets is a set top box that replaces or supplements their DVD and Blu-Ray players while getting the exact same experience. And, they don't have to deal with the problems of streaming movies where even on a high speed connection you get buffering and drop outs. Apple does this very well. They let you start watching immediately, but if you wait, the whole thing gets downloaded locally allowing disconnected watching.
I can think of three reasons why they are not doing this.
1. The content providers are worried that if any content is stored locally, it can be hacked. Yet, Apple has been able to make that deal. So, perhaps this isn't it.
2. People don't actually want the same experience they have with right now with mailed DVDs. Perhaps let the user choose any of the X items locally stored as their next movie. Not quite pay per view, but very cool. Especially since you picked the movies in your queue. (Updated: Apparently the roku does this. Any movie in your queue shows up in the list)
3. Bandwidth costs far exceed what they would make back withouth raising prices.
I actually think #3 is the real problem. They cannot stream that much video per person on a regular basis and keep up with the current cost structure. Bandwidth and server costs would instantaneously swamp any money they saved from postage costs.
So, if this is the case, then I would humbly suggest that they look at the bittorrent protocol. No, it won't work in every installation, but it should work in enough that it would significantly reduce load on their servers and make it more affordable and faster for everyone.
Still, at $99 the Roku might be worth the cost. If nothing else, they are at least giving a little bit of competition to Apple.
NetFlix: First Netflix Streaming Box Review, $100 and Unlimited Downloads!