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Mon, Dec 01, 2008 - 03:30 PM EST  —  AAPL: 91.10 (-1.57, -1.69%)  |  NASDAQ: 1433.16 (-102.41, -6.67%)

Roku ‘Netflix Player’ box streams old movies and TV shows to your TV
Tuesday, May 20, 2008 - 01:19 PM EST

"Netflix today unveiled a new set-top box to be produced by privately held Roku Inc. that will allow subscribers to stream an unlimited number of movies and television shows directly to televisions. The device costs $99. The video content is free to anyone with a Netflix subscription of $8.99 a month or more. Most of the video content will consist of older material, rather than new releases," Eric Savitz blogs for Barron's.

"The obvious comparison here is with Apple’s Apple TV box, which costs more, requires paying for movies downloaded from iTunes, but also offers more functionality, like the ability to stream personal music and photo content to your television. Older movies for free? Newer movies for a fee? It’s an interesting choice," Savitz blogs.

MacDailyNews Take: Yeah, Eric, it would be an interesting choice, if it made any fargin' sense. We must have missed the memo where the definition of "free" was changed from "no cost" to "$99 upfront plus $8.99 per month (base starting price)." The Netflix box also requires users to queue up movies on a computer unlike the Apple TV, which lets users choose content from the comfort of their couches, no computer required.

Full article here.

MacDailyNews Take: It's too bad that Netflix's rather ugly black Roku box ignores new feature film releases, current TV shows, your photo libraries, your iTunes music libraries, music videos, podcasts, and YouTube content like Steve Ballmer ignores antiperspirant, hair gel, and cardio. They simply don't exist, baby!

So, you "save" $129 if you buy the Netflix box instead of an Apple TV, at least until the first year or so of paying at least $8.99 a month goes by. Then, your "savings" go poof, you end up quickly paying much more for much less and, hey, you still can't play your tunes, see your photos, check out YouTube and podcasts, see any new movies or TV shows, or have the option to purchase content. What a great product!

The fact that Netflix limits their selection of old movies to just weak 480i resolution only adds to the disappointment. Of course, Apple offers new releases, same day as DVD, in 720p HD with Dolby Digital 5.1 surround sound for Apple TV (hardware is capable of up to 1080i).

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May 20, 08 - 12:22 pm Comment from: MaLvado

Wow, not even close to being competitive to the TV ... but the lemmings will blindly buy it and claim that it costs less.

May 20, 08 - 12:33 pm Comment from: Ampar

From the marketing meeting this morning:

Netflix Player

The Perfect Solution for Those Who Don't Know any Better.

May 20, 08 - 12:33 pm Comment from: January 24, 1984

Why not have both?

I use a MacMini with a TB of stuff...think I'll add this for the really bad "B" Sci-Fi movies.

May 20, 08 - 12:33 pm Comment from: R2

At Gizmodo, the Apple-hating fanboys all went crazy over it. I don't know why.

Even though I'm not a big fan of Apple TV, I'd much rather have it than this box. At least I can stream and store whatever movies I want on top of purchases from the iTunes catalog.

May 20, 08 - 12:36 pm Comment from: Falkirk

I'd prefer to see a little more analysis and a lot less jingoistic cheering for all things Apple.

People who are using Netflix are already paying a monthly subscription fee. (And Netflix already has a huge user base.) For an additional one time payment of $99 they add online delivery of their content.

I'm not sure who gets what kind of advantage here. But I'm very sure that the battle to win consumers to new types of video content delivery devices is moving into high gear.

May 20, 08 - 12:37 pm Comment from: HMCIV

This Netflix player is fantastic. It's 5 years behind it's time. But so am I.

May 20, 08 - 12:39 pm Comment from: Jordan

Of course if you already happen to have a Media Center PC, you can add this for free instead of paying $99. And yes, it is $8.99 a month, but you do get unlimited movies.

But yeah, even I'll give the nod to an Apple TV here. In the end, though, downloaded movies aren't my thing. If I'm going to buy (or even rent) a movie, I'd much rather have the media, extras, and box, in the highest quality (Blu-Ray).

May 20, 08 - 12:44 pm Comment from: Mac-nugget

I would not discount this as real competition. Windows has always been inferior and cheeper then the Macintosh, yet it enjoys 97% market share.

Quality only matters to those that seek it. To the masses, this solution might be good enough. Just like Windows.

May 20, 08 - 12:51 pm Comment from: Asmodeus

I like the idea of older movies. I think 95% of movies past 1984 suck ass anyway, so the newer stuff doesn't matter to me.

Then again, I can just continue to use my G4 and ripped DVDs to stream my movies...

May 20, 08 - 12:53 pm Comment from: If...

If apple announced tomorrow that customers were able to opt in to a "all you can eat" subscription program for 8.99 a month via apple TV I would be all over it. My family watches A LOT of movies. We rent them in HD when that option is available, but we do not mind watching them in "near DVD" quality. I honestly think this Netflix box is a great idea, and I agree with a lot of the gizmodo article. I love my apple tv, but it is getting rather costly (60-80$/month). I was doing the whole netflix rip and watch later but I prefer to be legal rather than in a grey area. What I am getting at here is that sure the technology is a bit behind, and sure the movies are older, BUT I would use this product a lot and I think that many other consumers would/will do the same.

May 20, 08 - 12:53 pm Comment from: OBill-Wan Kenobi

I'm guessing there aren't any accounting majors in room? The Netflix subscription is referred to as a "sunk cost". It's pre-existing and in this case, also pays for another service (i.e. receiving dvd's, new and old releases, via U.S. mail). If you're already shelling out the monthly fee, buying the Roku box simply adds another service for a flat $99, which you amortize over the life of the service. If you only use it for a year, it's $8.25 a month. If you use it for two years is $4.12 a month. Cheap by any standard.

$99 for the Roku box is roughly the price of cable for one month, which delivers the vast majority of it's content in 480.

Sorry to be the contrarian here but this product is an economic winner in my estimation, especially if you'd like to tell the cable company to take a flying leap.

May 20, 08 - 12:59 pm Comment from: KenC

When they say, "unlimited", how many movies are included? And, are they just "old" or are they B-catalog and worse?

I mean cable has plenty of movie channels so you can watch 24/7, but they repeat over and over with both old and B-catalog films. Why should we pay more when you pay already for cable?

May 20, 08 - 01:01 pm Comment from: Chuck C

I can see some benefits to this. I think NetFlix is a fantastic service. Unfortunately, being a Mac home, I have been unable to take advantage of their streaming service. This adds additional value to the $8.99 a month I pay for DVD/Blu-Ray rentals.

Of course, what I'd rather see is a) NetFlix supporting Mac/Safari from their streaming service and b) AppleTV to include a fully-functioning Safari browser to allow access to NetFlix, Hulu.com, etc.

May 20, 08 - 01:04 pm Comment from: HolyMackerel

AppleTV needs to catch up in two main areas:

"With standard RCA jacks, S-video, component video, HDMI, and optical audio, the Player will work with virtually any TV, AV receiver, or home theater system."

and

"Access a growing library of over 10,000 instant movies and TV episodes".

Note - the Roku doesn't have a hard drive, so expect lots of skipping.

May 20, 08 - 01:06 pm Comment from: iWill

Apple TV or Roku, all this really seems to point to is the inexorable shift to on-line media delivery models. We're ready already. Open the flood gates!

May 20, 08 - 01:08 pm Comment from: Botvinnik

dunno, a 10,000 movie library appeals to me. My tv delivers a much better resolution/audio and ease-of-use, but I seldom see a new movie that appeals to me. I think I'll just be patient as Apple works to increase their iTunes Movie Library.

May 20, 08 - 01:09 pm Comment from: Ampar

Kidding aside, competition is good especially in this area where the iTS needs A LOT more content and the option to rent or buy any movie.

May 20, 08 - 01:11 pm Comment from: Botvinnik

...oh yeah one more thought: If I got a Roku Netfilx, I'd have to put a doily or something over it as it is uglier than the inside of a cat.

May 20, 08 - 01:24 pm Comment from: skeeter

Gaaaaaah, MDN, come off it, wouldja? Looks like a great deal to me, considering I already subscribe to Netflix. A one-time 99 buck fee for unlimited on-demand movies? And you work with my analog TV? Okay!

HOWEVER, that 480i resolution is a total dealbreaker. Bummer.

May 20, 08 - 01:37 pm Comment from: Economics

$8.99/mo for all you can watch movies, plus latest release Blu-Rays and DVDs to watch when you want higher quality and/or something not in the download catalog...

Apple TV may be technically superior, but it's a bad value proposition in comparison. It's very expensive to feed if you watch even one TV show or movie a day.

Steve probably just shat himself in fear this morning, as clearly from the above comments, many Apple fanboys did. Without a change to an all you can eat model, the Apple TV business is dead. Sure, like Hillary it might try to hang on long past it has worn out it's welcome, but today is the day that it became irrelevant.

May 20, 08 - 01:40 pm Comment from: 84 Mac Guy

Netflix has come up with the TV version of Zune.

Great job Netflix. Keep that innovation coming.

May 20, 08 - 01:47 pm Comment from: Falkirk

I know it's being reported as "unlimited" but I find this hard to believe. If true, this is a much, much better deal than I'd originally realized.

You pay a subscription fee to Netflix. You use that to acquire your recent titles via the mail. You use your box to access 10,000 movies, and counting, any time in any amount?

Again, I'm finding it very hard to believe that the downloads are truly unlimited. But if so, Netflix beats all it's competitors, hands down.

May 20, 08 - 01:54 pm Comment from: ndelc

If you could watch anything that Netflix has to offer, I'd be interested. Apple TV is still just not that compelling to me. Sorry Apple, but until you add DVR functionality and a way to watch all I want for a flat monthly fee, I'm not interested.

It's a shame really, because we are in need of a combination of Tivo and Netflix, and Apple TV could be it, but it ain't there yet.

May 20, 08 - 01:57 pm Comment from: MikeK

Yes, it is a great deal...

Netflix already offers unlimited downloads if you have a snail mail subscription, the problem is they are only viewable on a PC. This box will allow you to watch them on your tv. For $99, it's much less than the Apple TV solution although, less elegant..

May 20, 08 - 01:58 pm Comment from: Economics

"So, you "save" $129 if you buy the Netflix box instead of an Apple TV, at least until the first year or so of paying at least $8.99 a month goes by. Then, your "savings" go poof, you end up quickly paying much more for much less"

MDN might do well to remember you actually have to get something to watch on your Apple TV too. If you actually rent more then 2 movies a month on the Apple TV, then the Apple TV never catches up on the cost comparison.

Apple TV, a movie a day=~$90/month.
Netflix, a movie a day=$9/month.

You've got to absolutely LOVE the difference between Apple TV and the Netflix box to want to pay 10x the price per month for it.

May 20, 08 - 02:05 pm Comment from: CYxodus

Wired has an article on the Roku with a headline that reads "Roku Netflix Set Top Box Is Just Shy of Totally Amazing". I was about to say "What dumba$$ wrote this" but stopped when I read that the writer's last name as Dumas.

LOL

http://blog.wired.com/gadgets/2008/05/review-roku-net.html

May 20, 08 - 02:09 pm Comment from: CYxodus

Typo. Replace AS with IS.

May 20, 08 - 02:11 pm Comment from: Mac-nugget

Apple TV vs. Roku Netflix

Apple TV = HD, 5.1 audio, hard drive, higher quality.

Roku = Cheep, Cheep and Cheep.

But hey, the masses like cheep, so I think this thing is going to do great.

May 20, 08 - 02:23 pm Comment from: Jordan

@Mac-nugget

I can do that too:

Apple TV vs. Roku Netflix

Apple TV = $230, $2.99 Rentals

Roku = $99, Free unlimited rentals

But hey, the fanboy masses like to pay more, so I think this thing is going to do great.

May 20, 08 - 02:26 pm Comment from: Mr. Peabody

As a Netflix subscriber and an TV wanter - I guess we'll see. But please TV - No Subscription, none, nada. And if you do go subscription make sure you keep pay-as-you-go.

May 20, 08 - 02:29 pm Comment from: ElderNorm

Hey, I like Apple TV, in fact, I own one. Mostly its turned off but when I want it, I enjoy it.

I also enjoy free movies on Hulu, now for the Mac. grin

And my home has a netflix account since my kids watch lots of off the wall movies so this might make sense. But buy anything from these people........... are you NUTS!!!

Everything in its place. I am not a fanboy. I really like Apple but I like it cause it does great for what I buy it for. Period.

Just a thought.
en

May 20, 08 - 02:37 pm Comment from: hairbo

bye, bye AppleTV. Netflix has it right: subscription model for either physical media or downloadable media, cheap box, plans to upgrade to HD in time, and surely plans to increase the library available to download. This thing is going to kill AppleTV.

May 20, 08 - 02:44 pm Comment from: Jubei

@hairbo

Cool, so with the Netflix, I can take my stuff with me on my iPod/iPhone/Touch, along with watching my videos, or listening to my music right on my AV 7.2 Home Theater right? I can also see all those HD PodCast and Audio PodCast right along with iTunes U and TV shows I purchased for the season.

May 20, 08 - 03:05 pm Comment from: Ampar

"This thing is going to kill AppleTV."

Or what doesn't kill it could make it stronger.

May 20, 08 - 03:05 pm Comment from: jersey_trader

The AppleTV can be wireless or ethernet. Is theirs? They have to get the movie from the PC somehow. (They could get a few hundred feet of Ethernet cable and run it to the PC when they need it.)

May 20, 08 - 03:20 pm Comment from: CYxodus

@hairbo

The thing streams movies at 1.0 Mpbs and is a pain at fast forwarding and rewinding. Sounds like a whinner..uh..winner.

May 20, 08 - 03:21 pm Comment from: jocknerd

I love the concept of Apple TV, but I don't own one yet. I don't have an HD television for one. But just looking at the movies on iTunes, I'm just not interested. I don't want to own movies or tv shows and until iTunes has a bigger library of movies and a way to rent tv shows, I won't get one.

I'd love to have one just for streaming home movies and photos from my Mac to my television but not for $230. NetFlix is selling theirs for the right price. $99.

May 20, 08 - 03:23 pm Comment from: with hairbro

netflix has done well for rentals, making it cheap and plentiful. They are going to do it with this box. They are probably testing the waters before they make it HD, to make sure they sell and build the catalog. Like apple did with the iphone, no 3g and single carrier. Besides, if they are old movies they were not filmed in HD anyway so they will just be upsampled. An overwhelming people don't care about HD either or even have it hooked up correctly.

Look at the Wii..., no HD and they are still sold out everywhere.

May 20, 08 - 03:25 pm Comment from: Ryan

Netflix online player still doesn't even work on a Mac. Get that right before you start playing in set top boxes, Netflix.

May 20, 08 - 03:39 pm Comment from: A. Jonathan

This is actually quite good for Apple, another "box" on the market will raise public awareness for the reletively new service being offered. If the public is aware that downloadable video content is being embraced by more than just the forward thinking Apple, they may be more apt to invest in the technology. Those of you who read this page likely know that physical media is on the out, and that once the general public gets a clue, the pioneering Apple, with already over a year of experience with its Apple TV (not to mention its superior features), will be the benchmark and industry leader.

May 20, 08 - 04:02 pm Comment from: Mr. Peabody

One last thought - Netflix is a very Mac unfriendly group, yes they are polite on the telephone, and their web site claims that their streaming service isn't available for Mac "yet", but... Give me a break, it ain't never gonna happen. Their setup top box would have to be totally Mac compatible before I would seriously think of it.

May 20, 08 - 04:08 pm Comment from: MacBill

Sorry, MacDailyNews, but you are DEAD WRONG on this one. You guys love being an Apple cheerleader, even when you're totally wrong.

I just ordered my Netflix Player because it offers TREMENDOUSLY AMAZING VALUE for my money. I will never order an AppleTV, because it does NOT offer tremendous value for my money.

I know nobody who has ever ordered an AppleTV, and I have 3 friends who immediately ordered the Netflix Player this morning as soon as they found out about this device.

Case closed.

Netflix Player beats AppleTV hands down.

May 20, 08 - 04:12 pm Comment from: Dave

^ What MacBill said.

AppleTV = overpriced hardware and content
Netflix = good deal

May 20, 08 - 04:37 pm Comment from: 4th Amendment

Jeez.. haven't any of you guys heard of EyeTV from ElGato?? their new s/w even has coverflow/iTunes interface and network sharing... full DVR capability so you are covered for network TV shows and sports ... auto-exports to iTunes etc... also, it's not very hard to rip your own DVD's to whatever format/platform/resolution you want so movies are covered... indeed, i think most will be disappointed with the new box and it's lack of functionality and connectivity and there will be much gnashing of teeth (and lashing out in forums such as this) when they see all of their friends and co-workers happily using Apple products... seemlessly... productively...

Buy The Ticket, Take The Ride!!!

May 20, 08 - 04:57 pm Comment from: Dave

@4th Amendment,

Yeah, I have EyeTV. What does that have to do with movies? Unless you're talking about censored movies with commercials that have to be edited out or skipped?

EyeTV is a perfectly good device for what it is, but its purpose has little to do with this discussion.

May 20, 08 - 05:39 pm Comment from: Yes

"Cool, so with the Netflix, I can take my stuff with me on my iPod/iPhone/Touch..."

No you can just rent movies at a hardware and content price the public will like. If you wanted to rip a particular movie for your iPod, or play it at 1080p from a Blu-Ray through your 7.1 system, you'd need to wait for it to come in the mail.

"They are probably testing the waters before they make it HD,"

The box is already HD capable, it's just the content that is not yet HD. In comparison thats an easy change.

May 20, 08 - 05:42 pm Comment from: RTFM

"The AppleTV can be wireless or Ethernet. Is theirs?"

Yes, built into the $99 price. Good deal, right?

May 20, 08 - 05:47 pm Comment from: Competition

"Or what doesn't kill it could make it stronger."

Sure, if Apple comes up with an approx $9/mo unlimited subscription then the game will be on. If they stay with the pay as you go $3/movie model it's all over.

May 20, 08 - 06:30 pm Comment from: Jubei

LOL... the Netflix Red Alert Spin Ninjas button got pressed. Netflix box is a lousy deal. Ever heard of Handbrake?

May 20, 08 - 07:05 pm Comment from: Dave

@Jubel

Huh? Does Handbrake provide you with on-demand movies?

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