January 4, 2008
Jeremy Toeman and Dave Zatz weighed in yesterday on the Netflix announcement that it will be partnering with LG on what it hopes will be the first of “100 Netflix-capable boxes” (putting its aspirational numbers significantly behind the thousand gPhones that Eric Schmidt is pursuing).
Jeremy notes the challenges of bringing a “fifth box” into the living room. It’s true that the standalone home network/broadband content access device has struggled for a number of reasons that I’ve explored in depth elsewhere. The alternative is easier said than done, though. Jeremy writes:
The “smart” marketing of the (rumored) $799 HD/Blu-Ray player will simply label it as having Netflix “built in” or something like that.
Right idea, wrong Trojan horse. The problem is that no amount of smart marketing will dramatically expand the market for a $799 dual-format high-def disc player, which is being hampered by nearly as many problems as Internet set-top boxes. There are standard-definition DVD players, of course, but that market has been completely commoditized.
Tags: broadband content, LG, movies, netflix, subscriptions