Netflix on Xbox Live has been a huge hit for Xbox 360 owners, and has probably exceeded expectations for both Netflix and Microsoft. Now, however, the service is no longer exclusive to Xbox, as Netflix has confirmed it's bringing its streaming movies service to PS3 at no additional cost to PS3 owners (nearly 9 million in the U.S.), except of course that they have to be Netflix subscribers. On Xbox Live, however, Netflix subscribers must also be Xbox Live Gold members; it'll be interesting to see if Microsoft opens that up to Silver (free) members.
Interestingly, the Netflix service on PS3 will initially be accessible not by downloading it from PlayStation Network, but from loading it up on a Blu-ray disc that Netflix will send to its subscribers (PS3 owners can request the disc now). This free instant streaming disc will utilize Blu-ray's BD-Live technology to access the Internet and activate the Netflix user interface.
"The PlayStation 3 system has always been about more than just gaming, and it will soon be the only platform in the industry to offer consumers such a variety of convenient options for enjoying movies and TV shows," said Jack Tretton, president and CEO, SCEA. "Whether you want to watch content on Blu-ray disc and DVD, download it from the PlayStation Network's video delivery service, or stream videos instantly from Netflix, the PS3 system is the only solution that offers it all."
"As instantly watching movies and TV episodes streamed from Netflix becomes an increasingly popular way to enjoy the Netflix service, our goal is to rapidly expand the devices that stream to our members," said Netflix CEO and co-founder Reed Hastings. "As a leading game console and Blu-ray disc player, bringing Netflix to the PS3 system is a real win for both Netflix members and PS3 system owners."
So why is Netflix not on the PS3's XMB? And will Nintendo's Wii be next to receive the service? Wedbush Morgan analyst Michael Pachter commented, "We believe that this intermediate step was taken in order to comply with Microsoft’s Xbox 360 exclusive arrangement with Netflix. The current deal was announced in July 2008 and implemented in November 2008, with no terms made public. We believe that the exclusive arrangement limits Netflix’s ability to appear on the 'dashboard' for the PS3 or the Wii, but because both devices have open architecture Internet browsers built-in, the solution proposed for the PS3 would likely not violate the terms of Microsoft’s exclusivity. We anticipate that a similar arrangement will be announced for the Wii in the next 12 months."
