
For some time Netflix has indicated they would announce their download strategy in January… and here we are! Initially, they will offer about 1,000 streaming movies (via their web page, Windows PC required) at the rate of 1 hour of video for every dollar you spend on monthly Netflix service. Depending upon your available bandwidth, quality can scale up to near-DVD quality. Deployment begins today and will be available to all customers by June.
Netflix has come up with quite an innovative pricing strategy. In its current form (PC-only viewing), I’m not sure how many new customers they’ll acquire… But perhaps this service will limit some (high profile) defections to Blockbuster. Though they’ve introduced a pricing inequity issue with a staggered roll-out: Mike gets “Watch Now.” Dave does not. We both pay the same, yet his service is now superior to mine. Netflix better be prepared to activate everyone who requests the feature or risk alienating customers.