BusinessWeek ran an article about the new Netflix/LG deal to create and market a set-top box that will allow Netflix users to stream movies to their TV - better late than never, maybe. If set-top boxes are the future, I would think that Tivo, Cable and Satellite companies already have a major advantage. Cable/Sat companies could easily develop monthly PPV subscription plans akin to Netflix’s DVD rental plans and I would be quite happy, unless I want to buy a movie without going to the store.

I don’t think that consumers are interested in more boxes just for video, especially if they are restrictive and don’t solve more than one problem or offer more functionality.

So far my digital consumption habits revolve around using my Macbook Pro, hooked up to my projector and streaming videos from Joost and Hulu, while also using it to play DVDs. I have Comcast digital cable and subscribe to Netflix. I plan to simply buy a Mac Mini as a dedicated machine to handle all my digital consumption (unless Apple unveils something better) - but then you would say that is another box!

You are right, but that new box replaces my DVD player and provides web browsing if I so desire.

Let’s first define the real problem:

Consumers want to be able watch movies and TV shows without buying DVDs or paying high prices for PPV without increasing the number of electronics beneath their TVs.

A good box therefore should have the following:

• DVD player functionality
• Movie/TV show subscription service with monthly fee (competitive price points)
• Download-to-own option with the ability to save on an external hard drive (replace my entire DVD collection with hard drives)

This box would replace my DVD player but not my cable/sat box. If the Cable/Sat companies created boxes with built-in DVD players and provided a monthly subscription movie service instead of expensive PPV options, then I would be the happiest customer.

They already have “on demand” services, large content libraries, tons of customers, set-top box experience and clout with content owners. They will move on this for sure.

However, until this happens, I don’t see a better solution than a Mac Mini hooked up to a TV unless Apple adds a DVD player and browser to the AppleTV and offers a subscription model at a price that is competitive with Netflix (I like my $17 monthly plan and consumers still do care about price).

Filed under: Emerging Tech, Technology