What does the Netflix set top box mean for the Apple TV?

Section: Apple, iPod + iTunes, Apple TV, iTunes, Movie Rentals, Originals

Netflix has introduced a $100 Apple TV competitor that will offer its users more than 10,000 movies and TV shows with a $8.99/month unlimited subscription plan.  Coming in at 5 by 2 inches, this device will offer the same component ports as the Apple TV plus one for S-Video and one for Composite video.  It has no hard drive, but rather streams the videos.  Netflix chief executive Reed Hastings says, “The key breakthroughs of the Netflix Player are simplicity and cost.” Right now, it’s looking like a pretty serious competitor to the Apple TV if you ask me.

Although, in my opinion, the Netflix box doesn’t look as appealing as the Apple TV, it does offer a pretty great deal.  With having two more ports and being $150 less than Apple’s, it could have a serious draw to consumers who are looking to get their first box and don’t want to spend too much.  Even though it doesn’t come connected to the popular iTunes store, it does offer a lot of media for a rather cheap price as long as you watch at least two or three movies a month.  Should Apple be worried about this?

I don’t really think so.  Netflix already has plenty of customers through its mailing service, and I don’t think this device is going to draw any more users.  It is more likely to draw the customers who already use Netflix and want even faster access to the movies rather than waiting a day or two for them to ship.  Apple still has an edge on this device in my opinion simply because of it’s reputation for the simple interface as well as the endless amount of content through the iTunes Store that goes way beyond movies and TV shows.  What do you think?

Full Story » | Written by Josh Holat for Appletell. | Comment on this Article »