Consumer Electronics

Netflix (NFLX) Goes After The TV Market

Netflix (NFLX) has put together a deal with LG Electronics to build a box which will allow consumers to download movies and play them on their TVs. It would seem like a clever idea if a dozen other companies were not in the market with similar products. That would include Apple (AAPL) TV and the Amazon (AMZN) Unbox.

Netflix has to get into the TV viewing business because PC downloads and DVDs though the mail have limited appeal. To some extent both are being killed off by satellite TV and cable VOD and DVR products. And, those products have an advantage. They come with the basis box that runs the entire television channel guide and station selection. The Netflix box is an add-on.

Companies have been "adding on" boxes for the TV for years. DVD players, Tivos (TIVO), tape players, and game devices. But, the top of the TV only has so much room and the cable box is still the one box which has to be in that pile.

Douglas A. McIntyre

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