Interviews with Digital Media Thought Leaders
Netflix “Watch Now” Fame Misses Bigger Point
Podcast Video | Posted by Phil Leigh on February 9, 2009
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If you would like to learn how the recent publicity surrounding Netflix’s “Watch Now” Internet-Video-to-the-TV initiative misses a bigger truth about Third Generation Television, this video is for you.
Confessedly, Netflix is doing an outstanding job to make the company a major winner as Internet-Video-to-the-TV gains momentum. First, they purchased the rights to stream 12,000 movie titles enabling subscribers to watch them (nearly) instantly. Second, they contracted with important appliance manufacturers to embed the service in their devices. Examples include Microsoft’s Xbox, certain TiVo models, Blu-ray players from LG and Samsung, and ultimately even TVs from LG and Vizio.
Last week Netflix announced that one million Xboxes have used the three-month old service. Lots of people have been impressed, including New York Times columnist David Pogue. He created a short video concluding that “Netflix will be the one who finally nails the Internet movie business.” As always, the story plot is humorous, clever, and informative. It is a dialog between David and a baby sitter. The baby sitter shows David how she will entertain herself with Netflix “Watch Now” movies via David’s TiVo. The first step uses a laptop computer to select the movie, and this is where the video misses the bigger point.
If instead of using the laptop to activate “Watch Now” on the TiVo she had merely connected it to the TV with an HDMI cable the baby sitter could watch any video on the Internet. She would not be limited to the mostly old or obscure titles of the Netflix “Watch Now” library. Instead she could visit Hulu and choose from dozens of current, and popular, TV shows. Alternately she could visit abc.com, or cbs.com, for more TV shows or go to YouTube. In short, once the laptop is connected to the TV there are no limitations.
In sum, consumers are discovering that flat panel TVs and laptop computers have common connection sockets. Once they are mated unlimited Internet-Video-on-the-TV becomes a reality. A remote mouse and keyboard provides a comfortable viewing experience 15 – 20 feet distant from the TV screen. It could well become the next “Killer Application” for computers and it should be evident this year.
However, the trend is under the industry’s radar. As such it is destined to traverse Esther Dyson’s four stages of all new ideas.
First, people don’t pay any attention to you. Second, they look at you like you are speaking Chinese. Third, they begin to scratch their chins and ponder that you may be “onto” something. Fourth, they respond with “Oh, that’s boring. Everybody knows that.” Pogue’s video demonstrates that the laptop-as-Media-Controller idea is at best somewhere between stage one and two among most established authorities.
This is Third Generation Television.
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Categories: Podcast Video
Tags: digital-media, Digital-Video, Future-of-Television, Internet-video, netflix, New-York-Times, Pogue, TiVo, TV
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Glad you enjoyed my little video!
However, when you say “all she had to do is connect the laptop to the TV with an HDMI cable,” you’re making quite a leap! You presume that:
* the laptop has an HDMI jack. There must be laptops that have these jacks, but I’ve never seen one, and the huge, 99% majority don’t have them.
* you have an HDMI cable long enough to reach across the room. This, too, is quite a leap of faith! Otherwise, you’re going to have to keep running across the room to squat down next to the TV every time you want to play, pause, fast-forward, or whatever. Nobody is going to put up with that for long.
* Hulu is not commercial movies. Netflix offers brand-name, commercial movies, for free. A laptop connected to a TV does not. What Web site offers free, legal, on-demand, free movies? There are none. (Except Netflix’s own, in which case you may as well enjoy the greater comfort of your own existing TV remote and not have to buy a new laptop, 20-foot HDMI cable trailing across the room, etc.)
The mistake *you* make is underestimating the Hassle Factor. The iPod became the dominant player because it eliminated the Hassle Factor. Other players did more, did it cheaper, but the iPod made things simpler and more effortless.
And THAT is the news in Netflix bringing its free movies into all our existing boxes!
–Pogue
Thanks for the comments, Pogue. They illustrate that I did not explain the scenario clearly.
First, there is no need for a lengthy HDMI Cable. Mine is only three feet long. I use a remote mouse and keyboard to control the browser on the TV screen. Many people seem to miss this point and have the fixation that picutres a long cable.
Second, 99% of the laptop computers that don’t have HDMI can connect in other ways. Mac, for instance, can use DVI adapter cables along with optical audio. Older Windows versions can use VGA and audio-out jacks.
Third, increasingly newer laptops have HDMI as for example the ACER Extensa 5630. H-P and Dell will pick up on the trend once they figure-out that it will increase demand for their computers.
Fourth, you overlook the point that the laptop-as-Media-Controller also enables the babysitter to watch Netflix movies. In point of fact a central advantage of the Media Controller application is that the babysitter can go anywhere on the Net and watch any video.
Fifth, perhaps you forgot that Hulu does offer movies as well as TV shows. Most of the movies are older ones, but the situation is similar at Netflix Watch Instantly.
Sixth, it is a myth that the Media Controller application is a hassle. As noted, with a remote mouse and keyboard the consumer can the watch Internet Video 15 – 20 feet distant from the TV screen. Additionally, users are not “put off” by the appearance of a browser on their TV monitor. The reaction is just the opposite. It is a welcome familiarity among a confusing number of interfaces that dedicated appliances require.
Well, we shall see. The arrangement you describe is great for geeks like us. But the general public? Forget it. The hassle factor is ENORMOUS…buying and pairing a remote keyboard and mouse, littering your living room with all those cables and adapters and gear, plugging and unplugging your laptop every time you want to watch a movie… nobody normal would tolerate it.
–Pogue
The hassle factor is minor and considerably overbalanced by the freedom to watch any Internet Video and surf the Web without limitations.
First, wireless keyboards and mice are plug-and-play.
Second, there is little new clutter. A keyboard and mouse on the coffee table is not too bad. The laptop can be closed-up and the DVD console player kicked-out since the laptop already has one.
Third, as noted, consumers are familiar with browsers and are not “turned-off” when they see one on the TV. Perception switches immediately to recognize the TV as a giant monitor for the laptop.
In short, limitless Internet access will trump the minor inconveniences that you assume will be enormous hassles.
No. The hassle factor is huge. I bought a Roku precisely because of the hassle factor. I can connect my laptop to my TV, sure. But then I’d have to buy a wireless mouse and keyboard. The Roku was only $99, probably not much more than the cost of a wireless mouse and keyboard.
Secondly, I have to constantly connect and disconnect my laptop. My Roku is a permanent fixture of my entertainment center. For me, connecting and reconnecting my laptop was a huge hassle, especially because I had no easy place to place it.
Thirdly, I have a 1/2 year old son that makes having a keyboard and mouse on the couch, as well as a laptop on the floor a bit of an issue.
Fourthly, when I come home and want to watch a Netflix tv/movie instantly or soon, an Amazon video, I simply click one button on my universal remote, and it switches to my Roku and I’m ready. No need to break out the laptop, boot it up, and connect it to my TV and sound system, load my browser, go to Hulu, etc. I can do in 1 second, what it would take me 5 minutes to do with the laptop setup.
Nah… I’ll stick to Roku and I’ll occasionally do Hulu on my desktop in the bedroom because I can view it from my bed.
Thanks for sharing your thoughts, Kenny.
First, it cannot be argued that Roku is cheap when there’s already a laptop to use at zero cost. You can argue that it is more *convenient* than plugging-and-unplugging the laptop. But the laptop’s ability to reach *any* Internet video is an offsetting convenience that Roku does not provide. In our analysis, consumers will ultimately conclude that unrestricted Internet access is the greater convenience.
Second, if you want to argue the Roku ($100) is cheaper than a *new* laptop that’s okay. However, suitable laptops can be purchased for as little as $300 - $400 and dedicated to the TV. Furthermore, they can replace a DVD player as well thereby making no change in the entropy around the TV.
Third, there are lots of items that parents routinely learn to keep out of reach of young children, and a keyboard is no challenge on that front.
Fourth, plugging-and-unplugging can be avoided by point two above, but if you insist on doing it the “degree-of-hassle” will depend a lot upon your set-up. For example, if your laptop has HDMI there’s little problem as the cable can remain connected to the TV like a dongle.
In case you are wondering if others do this, take a look here.
http://omnivideo.wordpress.com/2008/10/24/do-you-connect-your-pc-to-your-tv/
I didn’t argue that the Roku is cheap. But it’s certainly cheaper than buying a laptop. And it’s barely more expensive than having to outfit my current laptop with a wireless mouse and keyboard. You didn’t address that point.
It’s absolutely more convenient, which was the whole point. You’re arguing that a laptop is not a hassle. I’m arguing it is — which is precisely why I stopped using it to watch internet videos on my television.
“Unrestricted” is certainly better than the limited selection of Netflix, but it’s not a “convenience” issue. That’s a selection issue. I’m only going to do so much to be able to access this selection. For me, plugging in and unplugging my laptop, combined with the fact that I don’t own a wireless mouse/keyboard — which forced me to have to get up to play, pause, etc. videos made the experience not worth it… no matter the “unrestricted” selection.
Who are these consumers you analyzed? I’m a bit of a gadget geek and I computer savvy, but I found the experience to be unsatisfactory… What do yo think my 62 year old, computer-illiterate father would think? I can bet he’d prefer the Roku, or Tivo, or LG BluRay Player.
A dedicated computer is certainly a better option, but like you said, it’s a much more expensive one.
And you obviously don’t have toddler around. Yes, we’re able to keep things away from him, but when a mouse and keyboard are now required to pause, play, etc TV — it needs to be in easy reach of the parents. It’s not going to be easy to hide a keyboard from him, while still keeping it in easy reach to me.
Of course “degree of hassle” has to do with setup. It would certainly be less hassle with a dedicated, and always-on computer or laptop, but that’s not my reality.
I’m speaking from experience not theory. And from my experience, the laptop option was not a pleasant one.
And it won’t be for most consumers.
Instead, we need inexpensive, set-top boxes, with nice interfaces instead. Devices like the Roku or AppleTv loaded with Boxee are a much better solution, in my opinion.
Roku already has Netflix and soon to have Amazon (within weeks, I’d guess), and plans to offer links to more services soon. If they added Hulu, then the Laptop’s “unrestricted” access becomes almost moot considering Netflix, Hulu, and Amazon would make up 90% of the internet videos worth watching on your TV. And i’d have a dedicated box with a simple remote and interface to internet video with absolutely no hassle.