Time for Apple to cave to Netflix

June 2nd, 2009

Apple made a valiant effort with their Apple TV. It’s a great device which lets me easily share my iTunes contact with my TV. I’ve bought a few movies via iTunes and it’s great to have the option to play them on my computer, my Apple TV, or my iPhone, particularly when I’m trying to keep a 2 year-old entertained. When Apple announced they were adding movie rentals, and then HD movie rentals, I thought for sure Netflix was doomed.

I was wrong. There have been a few problems. The biggest is that the rental window is only 24 hours, which precludes watching half the movie one night and the other the next night unless you are really careful with your timing. There’s also a somewhat limited selection. The biggest problem, however, has been with HD. HD video downloads, even if slightly lesser quality than Bluray, would seem to be a great alternative, especially for rentals.

But the material just isn’t there. By my count, there are only 40 HD movies available on iTunes, and only a subset of these are rentable. It’s just not enough content to make the system work. Granted, even Netflix has a limited collection on their streaming service, but it would only make sense for Apple to add the ability to stream Netflix content to the Apple TV.

Might as well add Hulu, too, for good measure.

  • http://www.ryannorris.com Ryan

    Won’t happen. The CPU on the AppleTV is vastly underpowered for this – nevermind that it completely undermines what Apple sees as their key to a recurring revenue model. The smart thing to do would be to work an agreement to get Netflix to give Apple some portion of your monthly subscription, but Netflix has NO reason to cede to this. I think you’re more likely to see Apple adopt a subscription based, unlimited access model like Netflix before they even consider the thought of basically throwing away the commercial model around the iTMS.

  • Andrew

    Why not keep it simple and stick with Netflix?

  • http://www.infobhan.com Ishir Bhan

    @Ryan: I understand the business limitations, but I don’t think the CPU is underpowered – the device can easily play HD video without stuttering.

    @Andrew: You either need to be sitting at the computer or get another device to watch Netflix on your TV.

  • http://www.tsaiberspace.net/ Rob

    @Ryan is technically correct; the Apple TV 1.0GHz CPU will not play HD. See http://www.apple.com/quicktime/guide/hd/recommendations.html (1.8GHz – 2.0GHz for 720p or 1080p).

    @Ishir is also correct; the Apple TV *can* play HD, but that is not because of the CPU; the GPU is doing the heavy lifting.