Netflix may widen videostreaming playing field

Netflix may be about to announce what it's hinted for a while -- that more Internet-connected videogame console owners are going to be able to video-stream titles from the largest U.S. movie-rental service via mail.

Netflix, whose exclusive agreement to have Microsoft's Xbox 360 be the only videogames console to be able to play Netflix's digital titles went into effect last November, is about to broaden the number of console types with videostreaming capabilities, according to a financial analyst who covers the company.

"We expect Netflix to announce an additional video game hardware console partner soon, with access to its site through the console browser," wrote Wedbush Morgan analyst Michael Pachter in a note to clients earlier today. "Sony is the most likely partner, but Nintendo would create a much larger potential audience."

Meanwhile, Website Cubed3.com, citing IGN, reported late last week that Nintendo executive Denise Kaigler said Internet-connected owners of Nintendo's Wii consoles are in for "a little surprise," though didn't elaborate.

Netflix, which is set to release third-quarter earnings this week, has been augmenting its DVD-by-mail service by expanding both the number of its digital titles and the number of electronic components that can play them on TVs. Netflix Chief Financial Officer Barry McCarthy, speaking at a conference in New York last month, said videogame platforms are "ground zero" for hardware devices that will most effectively increase the number of Netflix subscribers who stream video titles, and that the company would consider similar agreements with companies such as Nintendo and Sony for their Wii and PlayStation 3 platforms when Microsoft's exclusivity expires.

The company announced its exclusive agreement with Microsoft's Xbox 360 in July 2008 and started allowing for streaming last Nov. 18. Netflix hasn't disclosed when that deal is set to expire, and declined to comment today.

Posted by Danny King on October 19, 2009 | Comments (0)