Streaming Movies: Netflix vs Apple TV

Until 10 years ago the only choice we had for getting a movie was to go to a local rental or entertainment store and purchase a physical copy. In 1998 a new company opened its doors called Netflix and ever since they have been making a big dent in the video rental industry. With Netflix you can rent as many DVDs as you want for one low price. There are no late fees and no due dates, DVD shipping is free both ways, and they should arrive in your mailbox in about 1 business day via U.S. mail. With a monthly service fee that makes it much more affordable than an individual rental model, it quickly has become a very viable option for renting movies with over 10 million subscribers. Now with their new offering you can watch movies instantly on your PC and TV.

Apple Inc. was established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977. It has had a cult like following for over 30 years and it has revolutionized the portable media market. iTunes has changed the way we access movies, music, TV and now podcasts. iPods have changed the way we carry and consume our media and the iPhone has changed the way we look at cellphones. Apple has a product titled Apple TV, ATV is a digital media receiver device manufactured, marketed and sold by Apple. It is a network device designed to play digital content originating from iTunes onto an enhanced-definition or high-definition wide-screen television. Apple TV can function as either a home theater-connected iPod device or a digital media receiver, depending on the needs of the user. It too can stream movies, music, TV shows and more to televsions.

Netflix has its own device which enables streaming to televisions called the Roku. According to Netflix, The Roku digital video player makes it easy to instantly watch movies and TV episodes over the Internet on your living room TV, or anywhere you have a TV and an Internet connection. Netflix has agreements with outside manufacturers and retailers such as Samsung & LG whose Blue ray players offer access to Netflix streaming services. In addition, they have agreements with Tivo and most recently Xbox360. Xbox360 users can now stream movies using the device and it is the only game console that lets members instantly watch movies & TV episodes streamed from Netflix on the TV.

Apple and Netflix have been able to create great value with their offerings and they are leading the world into a new age of digital media accessibility. Apple and Netflix have services which directly compete with each other and it's most apparent in the rental space. One large advantage AppleTV has is the access it provides to iTunes which offers a much larger collection of overall media including music, movies, TV shows and podcasts. It also allows you to purchase movies and TV shows as well as watch videos from Youtube, Netflix does not allow either. However, Netflix could easily enter the "for sale" movie and TV show market with a large catalogue of movies they could make available. Netflix also applies its "one low price" model to its streaming services which makes it much more cost efficient for avid renters than AppleTV who uses an individual rental model.

As with anything Apple does, the design and screen layout as well as the interface of AppleTV is sleek and appealing. (user note: entering text with the Apple remote can be a little slow however). The Roku's height is twice that of the AppleTV so it does take up a little more space with a "box" shaped design. Both AppleTV and the Roku offer HD streaming and AppleTV also offers HD movies for sale. If these two services could find synergy and come together it would be a dream scenario for the user with the best of both worlds.

Currently neither devices are very prominent in living rooms but both companies see increasing growth. Since the trend toward digital media turned nearly 4 years ago with the proliferation of the iPod, confidence in the adoption of digital devices for media consumption has increased dramatically. Just like the record turning to tape and the CD to MP3, the DVD and Video will become a media file. During the Q4 2008 conference call, COO Tim Cook noted that Apple TV sales in its first fiscal quarter were three times greater than the quarter a year ago. He said, " It is clear that the movie rental business has really helped Apple TV and there are more and more customers that want to try it." Netflix released numbers in 2008 saying that 100,000 Roku's had been sold to over 1% of its customers in its initial release.

If you have not used one of these services already we would highly recommmed you give them a try. Netflix is a great option for the cost concious avid movie renter and Apple is for those who like all the frills and thrills Apple products deliver. For those who love access to on-demand media either device is a must have.